In this article, we discuss 5 stocks that the Russia-Ukraine war will affect in the future. If you want to read about some more stocks that the Russia-Ukraine war will affect in the future, go directly to Russia-Ukraine War Will Affect These 10 Stocks in the Future.
5. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc. (NASDAQ:COIN) owns and runs a cryptocurrency exchange platform. At the beginning of the Russian invasion of Ukraine, crypto prices were on their way up as Western sanctions on Moscow forced investors to look towards crypto as a way into the Russian market. However, since then, the rising inflation has resulted in a massive drop in crypto prices, crashing the coin market. The Russian connection has so far been unable to support the industry.
On July 14, DA Davidson analyst Christopher Brendler maintained a Buy rating on Coinbase Global, Inc. (NASDAQ:COIN) stock and lowered the price target to $90 from $135, backing the firm to navigate near-term challenges despite falling volumes.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN), with 1 million shares worth more than $199 million.
In its Q4 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase Global, Inc. (NASDAQ:COIN) is a prime example.”
4. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 49
Spotify Technology S.A. (NYSE:SPOT) provides audio streaming services. The entertainment sector has been hammered by the recession fears in the US. This is because the industry was already reeling from the pressures of the pandemic and looking forward to a post-pandemic boom when the invasion took place, leading to a dramatic rise in inflation and a lull in spending. Spotify, as one of the leading streaming firms, is also in the limelight as it debates balancing rights concerns with access to information. It has shut Russian operations already.
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 recession fears were weighing on entertainment and streaming stocks.
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.”
3. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 66
The Mosaic Company (NYSE:MOS) markets phosphate and potash crop nutrients. The fertilizer industry has been affected by the Russian war in Ukraine since Moscow is the largest fertilizer exporter in the world. As supplies from the country are disrupted and businesses are sanctioned, countries in North America and Europe are looking at local firms to fill in the fertilizer gap. Export bans in China, which wants to protect food security due to the war, have increased prices of fertilizers further, leading to a boom for stocks like Mosaic.
On July 14, Credit Suisse analyst John Roberts initiated coverage of The Mosaic Company (NYSE:MOS) stock with an Outperform rating and a price target of $60, highlighting the importance of the Brazil business of the firm that is the fastest growing fertilizer market.
At the end of the first quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Mosaic Company (NYSE:MOS), compared to 46 in the preceding quarter worth $1.3 billion.
In its Q4 2021 investor letter, Ariel Investments, an asset management firm, highlighted a few stocks and The Mosaic Company (NYSE:MOS) was one of them. Here is what the fund said:
“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (NYSE:MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 83
Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas firm. Like fertilizers, Russia also exports oil. As one of the largest oil exporting nations in the world, the war has placed an additional pressure on oil prices that were already sky-high due to a surge in post-pandemic demand. The longer the war drags on, the further the prices of oil are likely to climb. Stocks like Exxon are set to benefit tremendously from this macro environment.
On June 20, HSBC analyst Gordon Gray maintained a Hold rating on Exxon Mobil Corporation (NYSE: XOM) stock and raised the price target to $97.50 from $92.50, noting that the correction in the oil sector in the past month had left valuations looking attractive.
At the end of the first quarter of 2022, 83 hedge funds in the database of Insider Monkey held stakes worth $8.5 billion in Exxon Mobil Corporation (NYSE:XOM), compared to 71 in the preceding quarter worth $5.3 billion.
In its Q4 2021 investor letter, Saturna Capital highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon Mobil Corporation (NYSE:XOM), which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
1. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 88
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. Travel firms had a torrid 2020 and 2021 because of the Coronavirus. A mini-boom for the industry was disrupted by the Russian invasion of Ukraine that has impacted tourism in Europe. Rising inflation due to the war has also led to a lull in consumer spending. So travel firms like Expedia are dealing with twin pressures of the war that are unlikely to go away until the conflict is resolved. Russia is also a popular tourist destination and revenues have been affected due to the war.
On July 14, Truist analyst Naved Khan maintained a Buy rating on Expedia Group, Inc. (NASDAQ:EXPE) stock but lowered the price target to $185 from $240, noting that the near-term outlook for travel was strong but there were recession fears looming.
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.”
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
