In this article, we discuss the top 5 trending stocks today If you want to check out some other hot stocks on Thursday, go directly to Top 10 Trending Stocks Today.
5. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 65
Shares of Snowflake Inc. (NYSE:SNOW) rose to a nearly four-month high before the opening bell on Thursday. The surge came after the data-software firm posted record sales for its fiscal second quarter.
Snowflake Inc. (NYSE:SNOW) generated revenue of $497.2 million, representing a jump of 83 percent over the corresponding period of 2021. Analysts were looking for revenue of $467.5 million. Product revenue for the quarter increased to $466.3 million, accounting for more than 93 percent of the total revenue.
On the downside, Snowflake Inc. (NYSE:SNOW) reported a loss of 70 cents per share, wider than the loss of 64 cents per share in the year-ago period.
For the full year, Snowflake Inc. (NYSE:SNOW) raised its sales outlook to a range of $1.905 – $1.915 billion, from its previous projection of $1.885 – $1.9 billion. The updated guidance represents year-over-year growth of 67 – 68 percent.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) came into the limelight today after completing a three-for-one stock split. The latest move is apparently intended to diversify its investor base. The split means the company’s existing shareholders will receive two additional shares for every share they hold.
Shares of Tesla, Inc. (NASDAQ:TSLA) ended the day at $891.29 in the previous trading session. The stock was seen trading at around $303 in pre-market trading Thursday following the split.
For those of you thinking whether a stock split would change the valuation of Tesla, Inc. (NASDAQ:TSLA), the answer is negative. The company’s market capitalization is still hovering around $930 billion.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
Shares of NVIDIA Corporation (NASDAQ:NVDA) turned red before the opening bell on Thursday after announcing weak financial results for its fiscal second quarter and issuing a disappointing outlook for the current quarter.
The Delaware-based tech giant reported adjusted earnings of 51 cents per share, down 51 percent on a year-over-year basis and below expectations of $1.26 per share. Revenue inched up 3 percent versus last year to $6.7 billion, while analysts expected NVIDIA Corporation (NASDAQ:NVDA) to post revenue of $8.10 billion.
NVIDIA Corporation (NASDAQ:NVDA) also released its segment-wise sales results. Its data center revenue climbed 61 percent to $3.81 billion and automotive revenue jumped 45 percent to $220 million in the quarter. On the downside, gaming revenue plummeted 33 percent to $2.04 billion, while professional visualization revenue slipped 4 percent to $496 million.
Looking forward, NVIDIA Corporation (NASDAQ:NVDA) expects to generate revenue of around $5.9 billion in the current quarter, well below analysts’ average estimate of $6.95 billion.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Shares of Alibaba Group Holding Limited (NYSE:BABA) rose over eight percent in mid-day trading Thursday following rumors that Washington and Beijing are close to reaching a deal. According to recently surfaced reports, the agreement will allow U.S. accounting regulators to scrutinize audit records of Chinese stocks listed on the American stock exchanges.
If the rumors turned out to be true, it would likely alleviate investors’ fears related to the delisting of Chinese firms trading on the U.S exchanges. Besides Alibaba Group Holding Limited (NYSE:BABA), many other Chinese stocks, including Baidu, JD.com and NIO, also moved up on Thursday.
Separately, investment management firm Artisan Partners talked about Alibaba Group Holding Limited (NYSE:BABA) in its second-quarter 2022 investor letter, stating:
“Alibaba rose 4% during the quarter. We would love to say the share price performance was due to strong operational performance. Unfortunately, that was not the case. The most recent earnings results showed its core e-business still had not returned to growth, primarily due to the difficult retail environment caused by the government’s zero-COVID policy. Alibaba also appears to be losing market share due to its product mix tilted toward apparel and cosmetics, categories currently stalled in this environment. The share price performance this quarter was largely a function of exogenous items—specifically, government actions in the form of stimulus to support the economy and less regulations.
Despite the poor recent results, Alibaba remains a powerful economic engine. It is a global leader in e-commerce and cloud computing, both of which should grow nicely over time. Management has started taking actions to improve profitability, which has been burdened by significant investment in loss-making business ventures. The financial results should improve significantly when China’s economy starts to recover from COVID-19 outbreaks. The shares are incredibly cheap and have some of the highest upside potential in the portfolio. Even embedding significant losses from new ventures, we estimate they are trading at 11X-12X unlevered earnings. In our view, the shares could double, and they still would not be expensive.”
1. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) delivered better-than-expected results for its fiscal second quarter. However, its financial outlook for the current quarter was below expectations, sending its shares down about 8 percent in pre-market trading Thursday.
Salesforce, Inc. (NYSE:CRM) earned $1.19 per share on an adjusted basis, beating the estimates of $1.02 per share. Revenue for the quarter advanced 26 percent on a year-over-year basis to $7.72 billion, ahead of the consensus of $7.69 billion.
For its fiscal third quarter, Salesforce, Inc. (NYSE:CRM) projected adjusted earnings of $1.20 – $1.21 per share on revenue of $7.82 – $7.83 billion. The outlook was below the consensus of $1.29 per share for earnings and $8.07 billion for revenue. The disappointing guidance suggests that Salesforce, Inc. (NYSE:CRM) is taking a hit from dropping IT spending.
Meanwhile, a number of research firms cut their price target for Salesforce, Inc. (NYSE:CRM) following its latest quarterly performance. For instance, Raymond James slashed its price target for the cloud-based software company from $250 per share to $225 per share.
You can also take a peek at 10 Dividend Stocks of All Time and 10 Best Cyclical Stocks for Inflation.
