In this article, we discuss 5 stocks that the Russia-Ukraine war is crushing. If you want to read about some more stocks that are being crushed by the Russia-Ukraine war, go directly to Russia-Ukraine War is Crushing These 10 Stocks.
5. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 88
Year-to-Date Decline in Share Price as of July 8: 47.72%
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. The Russian invasion of Ukraine has disrupted travel and tourism in Europe, affecting the post-pandemic boom in travel. A decline in consumer spending due to rising inflation has also affected the shares. In early March, the company announced that it had ceased offering travel and tourism services to Russia. However, services to Moscow from two destinations in the US still continue to be offered, per the website of the firm.
On July 7, Evercore ISI analyst Mark Mahaney maintained an In Line rating on Expedia Group, Inc. (NASDAQ: EXPE) stock and lowered the price target to $154 from $222, noting that high cost inflation pressures were weighing on large cap internet stocks.
At the end of the first quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 82 in the previous quarter worth $7.4 billion.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“Expedia Group, Inc. (NASDAQ:EXPE) outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”
4. EPAM Systems, Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 38
Year-to-Date Decline in Share Price as of July 8: 48.75%
EPAM Systems, Inc. (NYSE:EPAM) provides digital platform engineering and software development services. The company has strong exposure to the Russian market. Per Forbes, a majority of the 60,000 employees of the firm come from regions in and around Russia. These countries, severely affected by the war, include Ukraine, Belarus, and Russia itself. A large correction in the value of technology stocks in the wake of soaring inflation and a rise in interest rates has hammered the shares as well.
On June 6, Wedbush analyst Moshe Katri maintained an Outperform rating on EPAM Systems, Inc. (NYSE:EPAM) stock and raised the price target to $400 from $380, noting that moderating disruption from the Russia-Ukraine war bodes well for the results of the firm.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in EPAM Systems, Inc. (NYSE:EPAM), with 561,600 shares worth more than $166 million.
Carillon Tower Advisers, in its Q1 2022 investor letter, mentioned EPAM Systems, Inc. (NYSE:EPAM). Here is what the fund has to say in its letter:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. EPAM Systems, Inc. (NYSE:EPAM) offers information technology services. The company struggled amid geopolitical instability given its 14,000 employees in Ukraine and associated operational, relocation, and travel costs. The Fund sold the stock.”
3. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 32
Year-to-Date Decline in Share Price as of July 8: 56.42%
Carnival Corporation & plc (NYSE:CCL) is a leisure travel firm. In 2022, before the Ukraine war broke out, the firm had nearly 4% of total cruise capacity calling on Russian ports. In the wake of the Russian invasion, the company has been forced to cancel these stops at Russian ports. One of the most popular tourist stops is at Saint Petersburg and the disruption of services to the port has affected consumer confidence in the stock. Recession fears have also weighed on the stock in recent weeks.
On June 29, Morgan Stanley analyst Jamie Rollo maintained an Underweight rating on Carnival Corporation & plc (NYSE:CCL) stock and lowered the price target to $7 from $13, noting the weak second quarter results and guidance numbers of the firm.
At the end of the first quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $369 million in Carnival Corporation & plc (NYSE:CCL), compared to 33 in the previous quarter worth $470 million.
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 49
Year-to-Date Decline in Share Price as of July 8: 56.66%
Spotify Technology S.A. (NYSE:SPOT) provides audio streaming services. The firm was one of the first big internet giants to suspend Russian operations indefinitely when the Ukraine war broke out in late February. Back then, the firm had removed content linked to Russian propaganda news outlets on the platform as well. In late March, the firm said it was pulling out of Russia due to a new law that threatens jail for those spreading fake news about Russia. The firm cited safety concerns for staff as the prime reason behind the decision.
On July 7, Citi analyst Jason Bazinet maintained a Buy rating on Spotify Technology S.A. (NYSE:SPOT) stock and lowered the price target to $150 from $165, noting that entertainment and advertising stocks were on the decline due to recession fears.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Spotify Technology S.A. (NYSE:SPOT), with 4.3 shares worth more than $662 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Spotify Technology S.A. (NYSE:SPOT) was one of them. Here is what the fund said:
“We also added to our positions in Spotify Technology S.A. (NYSE:SPOT). The company has large addressable markets with strong brands that should allow them to take significant market share over time. We believe Spotify Technology S.A. (NYSE:SPOT) is appropriately financed and should generate significant cash to continue investing in their businesses for further growth.”
1. VEON Ltd. (NASDAQ:VEON)
Number of Hedge Fund Holders: 11
Year-to-Date Decline in Share Price as of July 8: 74.30%
VEON Ltd. (NASDAQ:VEON) is a Netherlands-based company that offers telephone and mobile communication services. The firm has heavy exposure to the Russian market and the war in Ukraine has hit this revenue as the West sanctions dealings with Moscow. Per Forbes data, nearly half of the total revenue of the company, which was around $7.8 billion in 2021, came from the Beeline network it operates in Russia. Although the earnings of the firm have grown in local currency in Russia, they have decreased in dollar terms.
On June 8, VEON Ltd. (NASDAQ:VEON) announced that it had completed the sale of its unit in Georgia. The unit was sold to a former partner of the firm in a deal valued at $45 million. Kaan Terzioglu, the CEO of the firm, said the sale was part of a plan to streamline operations.
At the end of the first quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $23 million in VEON Ltd. (NASDAQ:VEON), compared to 15 in the previous quarter worth $52 million.
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
