In this article, we discuss the 5 stocks to sell now according to Michael Burry. If you want to read about some stocks to sell now per Burry, go directly to Michael Burry Stock Portfolio: 10 Stocks He Sold.
5. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 61
Decline in Share Price Over Past Year: 37%
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company that provides content across various distribution platforms. On November 3, The CEO of Warner Bros. Discovery Inc, on the earnings call, announced that the company’s streaming platform will combine HBO Max and Discovery+ and will roll out by spring 2023. Burry held a stake in the firm in the second quarter of 2021 and the first quarter of 2022. This was sold off completely in the second quarter of 2022.
On November 7, RBC Capital analyst Kutgun Maral maintained an Outperform rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $27 from $44, noting that the company reported mixed third quarter results.
At the end of the third quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 68 in the preceding quarter worth $2.3 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of them. Here is what the fund said:
“We sold the last of our shares in Warner Bros. Discovery, Inc. (NASDAQ:WBD) in early April. Luckily, we were able to sell the majority of our long-held holdings in the crazy run-up that accompanied the Archegos Capital debacle in early 2021. We did, however, rebuild a position in the stock when the stock went back down and this second go was disappointing.
We weren’t happy with the shift in strategy from the company’s core non-scripted and documentary content—where it commanded a leading position— into the wider media business it dived into with the Warner Media acquisition. We were also unhappy with the resulting increase in debt levels. It was time to take our money and walk away.”
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 68
Decline in Share Price Over Past Six Months: 1%
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses manufactures, and markets pharmaceutical products worldwide. On October 31, Bristol Myers Squibb announced that their FDA-approved anaemia therapy, Reblozyl, which was developed in partnership with Merck, a multinational pharmaceutical company, reached the primary and key secondary endpoints in a phase three trial. Burry had bought a stake in the firm in the fourth quarter of 2021 but sold it off completely in the second quarter of 2022.
On October 12, Barclays analyst Carter Gould maintained an Equal Weight rating on Bristol-Myers Squibb Company (NYSE:BMY) stock and lowered the price target to $66 from $69, noting that “another round of challenging setups is expected for biopharmaceuticals in third quarter due to COVID, currency and macro headwinds as well as mixed trends.
At the end of the third quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Bristol-Myers Squibb Company (NYSE:BMY), compared to 69 in the preceding quarter worth $2.2 billion.
In its Q3 2022 investor letter, RGA Investment Advisors, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE:BMY) was one of them. Here is what the fund said:
“Bristol-Myers Squibb Company (NYSE:BMY), which we referenced above, boasts a double-digit free cash flow yield that gets divided roughly equally between repurchases, a dividend and M&A in what is the best environment for acquisitions perhaps ever. In 2019, BMY acquired Celgene, which had one of the better corporate development programs in the industry. We view this as a great outlet for us as generalists considering a company like BMY should truly thrive with the ability to acquire outstanding assets and science at depressed valuations. We touched on the Turning Point acquisition above and we expect the company to be increasingly active in the M&A landscape. Importantly, Celgene also came to BMY with a phenomenal CAR-T platform. CAR-T is a cell therapy that activates the body’s immune system to target cancers. This will be a key growth vector alongside M&A in overcoming the company’s patent cliff.”
3. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 76
Decline in Share Price Year-to-Date: 6%
Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. On November 3, Cigna Corp posted earnings for the third quarter of 2022, reporting earnings per share of $6.04, beating market estimates by $0.33. The revenue over the period was $45.28 billion, up 2.2% compared to the revenue over the same period last year and beating market estimates by $570 million. The firm was part of a wide group of stocks sold off by Burry completely in the second quarter of 2022.
On November 8, Wells Fargo analyst Stephen Baxter maintained an Overweight rating on Cigna Corporation (NYSE:CI) stock and raised the price target to $370 from $319, highlighting that the company reported strong third quarter results.
At the end of the third quarter of 2022, 76 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Cigna Corporation (NYSE:CI), compared to 66 in the preceding quarter worth $3.2 billion.
In its Q2 2022 investor letter, Aristotle Capital Management, LLC, an asset management firm, highlighted a few stocks and Cigna Corporation (NYSE:CI) was one of them. Here is what the fund said:
“Cigna Corporation (NYSE:CI) contributed to performance in the second quarter, outpacing the benchmark Health Care sector return. We believe Cigna benefited from investors seeking relative “safety” in the managed care sector and the stock’s attractive valuation at just over 10 times next year’s earnings. During the quarter, Cigna reported an earnings beat due to a better-than-expected medical loss ratio.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Decline in Share Price Over Past Year: 14%
Apple Inc. (NASDAQ:AAPL) designs, manufactures and markets smartphones, personal computers, tablets, wearables, and accessories. Burry had bought PUT options on Apple stock in the first quarter of 2022 and sold off these options in the second quarter.
On November 8, UBS analyst David Vogt maintained a Buy rating on Apple Inc. (NASDAQ:APPL) stock and lowered the price target to $180 from $185, noting that iPhone availability across 30 countries indicates that wait times across most markets including the US ticked higher for the second straight week.
At the end of the third quarter of 2022, 140 hedge funds in the database of Insider Monkey held stakes worth $144 billion in Apple Inc. (NASDAQ:AAPL), compared to 128 in the previous quarter worth $143 billion.
In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact the production of apple products, however, the manufacturing facilities have resumed activity.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Decline in Share Price Over Past Year: 41%
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. On October 18, Meta Platforms announced that it will sell its Giphy, an animated search engine. Burry sold off a previously-held stake in the firm completely in the second quarter of 2022.
On November 7, Itau BBA analyst Thiago Kapulskis upgraded Meta Platforms, Inc. (NASDAQ:META) stock to Outperform Market Perform with a $102 price target.
At the end of the third quarter of 2022, 177 hedge funds in the database of Insider Monkey held stakes worth $14 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 185 in the preceding quarter worth $18.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
You can also take a peek at 15 Biggest Lumber Companies in the World and 15 Biggest Cryptocurrency Exchanges in the World.
