Here’s Why Alibaba Group Holdings, Alphabet, and Valeant Pharmaceuticals Are in Spotlight Today

US stocks are in the green on Thursday, as investors react to a wave of strong earnings reports from the retail sector. A small decline in weekly jobless claims has also spurred the market to go higher.

In this article we’ll take a look at the results released by Shake Shack Inc (NYSE:SHAK), Alibaba Group Holding Ltd (NYSE:BABA) and Macy’s Inc (NYSE:M), and the latest developments at Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Alphabet Inc (NASDAQ:GOOGL).

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Weak Sales Sink Shake Shack

Shake Shack Inc (NYSE:SHAK)’s stock is down by some 7% so far today, despite surpassing analysts’ forecasts for the second quarter. Investors were clearly not happy with the company’s same-store sales, which rose just 4.5%, below expectations of a 4.8% increase. Shake Shack posted $66.5 million in revenue and earnings of $0.14 per share, topping estimates of $0.13 per share on $63.1 million in revenue. The company also adjusted its full-year guidance as it now expects revenues of $253 to $256 million, above the consensus of $251.9 million. Analysts at Jefferies reacted quickly and lowered their price target to $36 from $38 per share, but maintained their ‘Hold’ rating. Hedge fund interest in Shake Shack Inc (NYSE:SHAK) picked up during the first quarter, as the number of long positions rose to 14 at the end of March, from 11 registered three months earlier.

Yet Another Controversy

Valeant Pharmaceuticals Intl Inc (NYSE:VRX)‘s woes seem to be far from over. The company is under criminal investigations as the U.S. attorney’s office is looking into the possibility that Valeant and Philidor Rx Services LLC, a now defunct mail-order-pharmacy, defrauded insurers by hiding their relationship. As Philidor helped patients get insurance coverage for Valeant drugs instead of cheaper alternatives, prosecutors are trying to find out if insurers knew about the close ties between the two companies or perceived Philidor as neutral. Valeant’s stock lost nearly 10% in Thursday intraday trading and are currently down by 75% for the year. Despite all its woes, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is still backed by billionaire Bill Ackman, who’s fund, Pershing Square, holds a 9% stake in the company.

Turn the page to see why Alphabet’s shares are slightly down today, what’s the deal with Alibaba’s second quarter and why investors are going crazy over Macy’s.

Executive Resigns

Another Alphabet Inc (NASDAQ:GOOGL) executive has announced his departure, as the overhaul among the company’s leaders continues. Bill Maris, the founder of Google’s venture capital arm, has left the tech giant to focus on a smaller business. With $2.4 billion at its disposal, Google Ventures backed more than 300 small businesses over the years, among them resounding names like Uber or Magic Leap, a developer of augmented reality headsets. Mr. Maris will be replaced by David Krane, who was already managing the fund’s day-to-day operations. At the end of the first quarter, Alphabet Inc (NASDAQ:GOOG) was the most popular stock among the hedge funds followed by Insider Monkey, as 155 of them had the company’s Class A shares and 142 funds held Class C shares.

Alibaba Is On A Roll

It’s all smiles for Alibaba Group Holding Ltd (NYSE:BABA) shareholders this morning, as the e-commerce giant continues to thrive despite increasing worries about China’s economy. The company’s results in the most recent quarter have easily topped analysts’ estimates, with revenues climbing 59% year over year to $4.84 billion. Alibaba also posted a profit of $1.14 billion or $0.74 per share, when adjusted for one time gains and costs. Investors, on the other hand, were expecting $0.62 a share on $4.52 billion in revenue. The company saw a 38% growth in its core business, registering 434 million annual active buyers, up 18% from a year earlier, while its cloud-computing business grew 156% year over year as the number of paying customers rose to 577,000. The hedge fund sentiment towards Alibaba Group Holding Ltd (NYSE:BABA) cooled down a bit during the first three months of 2016, as the number of long positions dropped to 67 at the end of March from 77 registered a quarter before.

Macy’s Steps Up Turnaround Efforts

Investors are cheering Macy’s Inc (NYSE:M) latest move, as shares jumped by 15%. Declining sales and falling foot traffic have prompted the management to take some drastic measures in order to turn the company around. Macy’s has announced it will close 100 more stores, roughly 15% of its store base, early next year and focus more on its online operations. The news comes after another disappointing quarter, which saw a 4% decline in total sales while consumer spending in the US rose 4.2% in the second quarter. The company posted $5.87 billion in revenue and adjusted earnings of $0.54 per share, while analysts had projected $0.45 per share on the back of $5.75 billion in revenue. Macy’s Inc (NYSE:M) is also looking to offload a part of its real estate portfolio, under pressure from Jeffrey Smith‘s Starboard Value. The activist investors holds 3.92 million shares of Macy’s, as reported in its latest 13F filing.

Disclosure: none.