Top 5 Losers Today

In this article, we discuss the top 5 losers today. If you want to check out some other stocks losing value on Thursday, go directly to Top 10 Losers Today.

5. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Number of Hedge Fund Holders: 38

Shares of Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) fell more than seven percent in mid-day trading Thursday after Credit Suisse turned bearish on the Florida-based cruise line.

Credit Suisse analyst Benjamin Chaiken lowered his ratings for Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) from “Outperform” to “Underperform,” citing downside risk to the company’s 2023 EBITDA outlook.

Chaiken also thinks the stock’s higher valuation versus its peers is unsustainable. He trimmed his price target for Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) from $20 per share to $14 per share.

4. Kohl’s Corporation (NYSE:KSS)

Number of Hedge Fund Holders: 40

Kohl’s Corporation (NYSE:KSS) managed to beat financial expectations for the third quarter. However, it withdrew its financial outlook for the full year, citing macroeconomic challenges, volatile business trends and unexpected leadership changes. As a result, its shares slightly moved down this morning.

For the third quarter, Kohl’s Corporation (NYSE:KSS) reported adjusted earnings of 82 cents per share, significantly lower than $1.65 per share in the year-ago period. Revenue also declined 7 percent versus last year to $4.28 billion. Nevertheless, the results were better than analysts’ average estimate for earnings of 77 cents per share on revenue of $4.06 billion.

Among other updates, Kohl’s Corporation (NYSE:KSS) announced that its board has constituted a search team to supervise the search for a new chief executive officer.

3. Copart, Inc. (NASDAQ:CPRT)

Number of Hedge Fund Holders: 50

Shares of Copart, Inc. (NASDAQ:CPRT) slipped over two percent in pre-market trading Thursday after the online vehicle auction platform missed profit and sales expectations for its fiscal first quarter.

Copart, Inc. (NASDAQ:CPRT) reported adjusted earnings of 51 cents per share, down from 53 cents per share in the year-ago period and below the consensus of 56 cents per share. Revenue for the quarter rose 10.3 percent on a year-over-year basis to $893.4 million, while analysts were looking for $898.80 million.

Discussing the results, Copart, Inc. (NASDAQ:CPRT) blamed Hurricane Ian for hurting its operating results for the quarter. The company said it incurred additional costs of around $25 million as a result of the hurricane.

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Shares of Alibaba Group Holding Limited (NYSE:BABA) turned red before the opening bell today. The drop came after the Chinese e-commerce giant posted lower-than-expected sales for the third quarter.

Alibaba Group Holding Limited (NYSE:BABA) primarily took a hit from weak consumer spending and soft economic activity due to frequent lockdowns in China. Moreover, intensifying competition from rivals like Pinduoduo also hurt its growth.

For the third quarter, Alibaba Group Holding Limited (NYSE:BABA) posted revenue of $29.12 billion, representing a surge of just 3 percent on a year-over-year basis. The numbers missed the consensus of $29.44 billion. On the bright side, the adjusted earnings of $1.82 per ADS surpassed the expectations of $1.64 per share.

Speaking on the results, CFO Toby Xu said in a statement:

“We generated another quarter of healthy revenue growth of 3% year-over-year in spite of the impact on consumption demand by the COVID-19 resurgence in China as well as slowing cross border commerce due to increasing logistics costs and foreign currency volatility.”

1. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Shares of Salesforce, Inc. (NYSE:CRM) slid more than three percent this morning after Monness Crespi Hardt downgraded the cloud-based software company from “Buy” to “Neutral.”

Analyst Brian White believes enterprise technology spending is at risk due to a weakening economy. White also thinks Salesforce, Inc. (NYSE:CRM) will go through difficulties in the coming quarters.

Separately, investment management firm ClearBridge Investments also talked about Salesforce, Inc. (NYSE:CRM) in its third quarter 2022 investor letter, stating:

“Software has been a solid long-term performer for the Strategy and a key point of differentiation versus the benchmark. But even recurring revenue businesses enabling digital transformation are not immune from the vagaries of the COVID-19 recovery. Salesforce, Inc. (NYSE:CRM) (-12.8%) has detracted from results due to slowing revenue growth driven by a combination of factors, including pull-forward of enterprise digitization demand during COVID-19, some operational missteps, and lengthening sales cycles.

We believe the company still has ample room for revenue growth across its various platforms and should benefit from budget consolidation as customers seek control over tech spending in a weakening economy. We also see significant room for margin expansion. While we have trimmed our Salesforce (CRM) exposure, we maintain confidence that the stock will rerate to a level that reflects its growth potential.”

You can also take a peek at Best FAANG Stocks To Buy and 12 Best Consumer Staple Stocks.