In this article, we will discuss some of the popular stocks crashing today. To take a look at some more stocks that are falling, go to These 5 Stocks Are Crashing Today.
The US equity market reflected changes in the market sentiment following yesterday’s rally. Investors are taking into consideration the earnings results from notable diversified financial institutions. The S&P 500 Index and the NASDAQ Composite Index are down 0.44% and 1.2%, respectively, as of 11:40 AM ET. Meanwhile, the Dow 30 Index is up 0.25% for the day. Some of the notable stocks driving the market down include Advanced Micro Devices, Inc. (NASDAQ:AMD), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and Meta Platforms, Inc. (NASDAQ:FB).
Let’s discuss why these stocks are crashing today and look at how elite funds are positioned in them.
10. Wells Fargo & Company (NYSE:WFC) has fallen 3.3% as of 11:32 AM ET after the San Francisco, California-based diversified financial services company revealed lower-than-expected revenue due to a decline in mortgage lending. Revenue for the three months was posted at $17.59 billion, reflecting a decline of 2.6% YoY and missing the consensus estimate of $17.82 billion. Meanwhile, Wells Fargo & Company (NYSE:WFC) reported GAAP EPS of 88 cents, which surpassed the consensus estimates of 81 cents. The company reported a 33% decline in home lending due to an increase in mortgage rates as the Federal Reserve is raising interest rates to counter the impact of inflation, adversely impacting demand.
Out of the 924 hedge funds in Insider Monkey’s database, 94 funds held a stake in Wells Fargo & Company (NYSE:WFC) as of Q4 2021. Eagle Capital Management is the leading investor in Wells Fargo & Company (NYSE:WFC), with a stake worth over $961 million.
9. Roku, Inc. (NASDAQ:ROKU) has lost 2.7% of its value as of 11:32 AM ET after the target price of the San Jose, California-based manufacturer of digital media players was lowered from $165 to $150 by Matthew Thornton at Truist. However, he reiterated a Buy rating on Roku, Inc. (NASDAQ:ROKU) stock. The revised target price provides a potential upside of 32% as opposed to 45% previously. Thornton reduced the target price before the first-quarter earnings results as the sentiment towards the company is likely to be ‘cautious.’ He highlighted that Roku, Inc. (NASDAQ:ROKU) would be negatively impacted by concerns related to macroeconomic conditions and supply chain issues. In terms of enterprise value to sales multiple, Roku, Inc. (NASDAQ:ROKU) is currently trading at its lowest level.
As of Q4 2021, 43 hedge funds had a holding in Roku, Inc. (NASDAQ:ROKU).
8. Western Digital Corporation (NASDAQ:WDC) has declined 1.4% as of 11:32 AM ET after the San Jose, California-based manufacturer of hard drives, USB drives, and memory cards was downgraded from a Positive to a Neutral rating by Mehdi Hosseini at Susquehanna. The analyst slashed the target price on Western Digital Corporation (NASDAQ:WDC) from $80 to $50. This provides a potential upside of only 5.2% from the last closing price. Hosseini anticipates the shipments for near-line hard disks to rise in the second half of this year and the selling prices of NAND to bounce back in the short term. However, the point of concern is the expected weaker demand in the cloud space in 2023. Hosseini sees a 30% downside to the analysts’ earnings estimates for 2023.
Overall, 50 hedge funds were invested in Western Digital Corporation (NASDAQ:WDC) as of Q4 2021. Lyrical Asset Management was long over 3.9 million shares of Western Digital Corporation (NASDAQ:WDC) during the fourth quarter.
7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has plummeted 1.9% as of 11:36 AM ET due to supply chain concerns. Even though Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported strong Q1 2022 results, the company highlighted that its suppliers are facing challenges in their supply chains due to the continued impact of COVID-19. Moreover, the semiconductor industry is dealing with a decarbonization challenge. Data shared by Greenpeace revealed that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is using 5% of Taiwan’s energy in its production of chips. This is expected to increase to 7.2% by 2022.
Of the 924 hedge funds being tracked by Insider Monkey, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was held by 72 hedge funds as of Q4 2021.
6. Tesla, Inc. (NASDAQ:TSLA) has declined 3.2% as of 11:33 AM ET after its CEO Elon Musk revealed a $43 billion takeover bid for Twitter, Inc. (NASDAQ:TWTR). He intends to buy the publicly listed company and take it private. This is the first instance that Musk has tried to acquire a company of such magnitude. Previously, he has built his companies from infancy. SpaceX and the Boring Company are some examples. Investors are concerned that instead of focusing on a trillion-dollar company of his own, Musk is shifting his focus to acquiring a $43 billion company. Tesla, Inc. (NASDAQ:TSLA) is already facing stern competition from some of its competitors.
At the end of Q4 2021, 91 hedge funds held a stake in Tesla, Inc. (NASDAQ:TSLA).
Along with Tesla, Inc. (NASDAQ:TSLA), other notable stocks that are falling today are Advanced Micro Devices, Inc. (NASDAQ:AMD), Bed Bath & Beyond Inc. (NASDAQ:BBBY), and Meta Platforms, Inc. (NASDAQ:FB).
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Disclose. None. These 10 Stocks Are Crashing Today is originally published on Insider Monkey.
