In this article, we will discuss 10 stocks that are in the spotlight today. To take a look at some more stocks that are trending, go to Why These 5 Stocks Are in the Spotlight on Monday.
US stocks are continuing their decline on Monday as investors are reacting negatively to concerns related to growth due to rising inflation that is resulting in the interest rate hike by the Federal Reserve. As of 12:51 PM ET, the S&P 500, the Dow 30 Index and the NASDAQ Composite Index are down 0.34%, 0.03%, and 1.05%, respectively. Some popular names making the headlines today include Tesla, Inc. (NASDAQ:TSLA), Alibaba Group Holding Limited (NYSE:BABA), and DraftKings Inc. (NASDAQ:DKNG).
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Let’s look at why these stocks are in the spotlight today and discuss how hedge funds are positioned in them.
10. Netflix, Inc. (NASDAQ:NFLX) is 0.27% in the green as of 12:41 PM ET after the stock of the Los Gatos, California-based streaming giant was upgraded from a Neutral to an Outperform rating with a price target of $280 by Michael Pachter at Wedbush. The analyst thinks that the release of Stranger Things and Ozark in two halves will reduce the churn rate and increase subscriber growth. Pachter further added that the recent losses incurred by Netflix, Inc. (NASDAQ:NFLX) are due to its saturation in the US and Canada. To overcome this issue, Netflix, Inc. (NASDAQ:NFLX) is cracking down on password sharing, which will ensure that free riders do not enjoy the company’s services. Furthermore, the company is planning to introduce an advertisement-based service to target subscribers who are unwilling to pay the monthly fee.
According to Insider Monkey’s proprietary data, 113 hedge funds held a stake in Netflix, Inc. (NASDAQ:NFLX) as of Q4 2021.
9. Twitter, Inc. (NASDAQ:TWTR) has slumped 6.05% as of 12:45 PM ET after Dan Ives at Wedbush securities highlighted that acquiring the social media microblogging platform for $54.20 per share is not possible under the current circumstances. The stock prices of companies like Twitter, Inc. (NASDAQ:TWTR) have come under immense pressure due to valuation concerns following the hike in interest rates by the Federal Reserve. Furthermore, Twitter, Inc. (NASDAQ:TWTR) also disclosed fake accounts and automated bots issues during its latest earnings results. Ives thinks Elon Musk’s disclosure that he is putting the deal on hold could be a violation of the nondisclosure agreement. The deal has become too complicated to predict whether the richest person in the world would go ahead with it or abandon it.
As of Q4 2021, the number of hedge funds invested in Twitter, Inc. (NASDAQ:TWTR) stood at 83. Renaissance Technologies was long over 2 million shares of Twitter, Inc. (NASDAQ:TWTR) during Q1 2022.
8. The Trade Desk, Inc. (NASDAQ:TTD) is up 1.12% as of 12:48 PM ET after the stock of the Ventura, California-based digital advertisement platform was upgraded to a Buy rating with a price target of $80 by Mark Kelley at Stifel. The target price provides an upside potential of 54.08% from the last closing price. The analyst highlights that the changing dynamic in the digital streaming industry will be a positive catalyst for The Trade Desk, Inc. (NASDAQ:TTD). The investment firm has rethought its position on the connected TV advertisement companies following the announcement that Netflix will launch its ad-based streaming service by the end of the year, and Disney+ intends to offer a similar service.
Of the 924 hedge funds tracked by Insider Monkey during Q4 2021, The Trade Desk, Inc. (NASDAQ:TTD) was held by 32 hedge funds.
7. Spirit Airlines, Inc. (NYSE:SAVE) has rocketed 11.07% as of 12:46 PM ET after JetBlue Airways Corporation (NASDAQ:JBLU) commenced a hostile takeover attempt of the company. The Miramar, Florida-based low-cost airline carrier declined a $33 per share bid from JetBlue Airways earlier this month in favor of a prior merger agreement with Frontier Airlines. Spirit Airlines, Inc. (NYSE:SAVE) and Frontier think that the merger would help them compete with their peers with fewer challenges. JetBlue has now offered $30 per share and is encouraging Spirit Airlines, Inc.’s (NYSE:SAVE) shareholders to vote against the merger with Frontier Airlines during the annual shareholder meeting on June 10.
Spirit Airlines, Inc. (NYSE:SAVE) was held by 19 hedge funds at the end of Q4 2021. PAR Capital Management was the leading hedge fund investor in Spirit Airlines, Inc. (NYSE:SAVE) during Q1 2022.
6. Twilio Inc. (NYSE:TWLO) has plummeted 9.17% as of 12:46 PM ET after the stock of the California-based customer engagement platform was downgraded from an Outperform to a Neutral rating by William Power at Baird. Meanwhile, the target price was cut from $155 to $120, providing a potential upside of 8.31% from the last closing price. Power shared that during the challenging time for the US economy due to high inflation and interest rate hike, he is switching his focus to companies that provide a global platform and are surrounded by strong free cash flow and balance sheets. In his opinion, Twilio Inc. (NYSE:TWLO) stock does not meet this criterion. Furthermore, Twilio Inc. (NYSE:TWLO) is facing strong competitive forces, challenges in profitability, and the absence of any short-term catalyst.
Out of the 924 hedge funds covered by Insider Monkey, 80 funds held a position in Twilio Inc. (NYSE:TWLO) as of Q4 2021.
In addition to Twilio, Inc. (NYSE:TWLO), some other trending stocks on Monday include Tesla, Inc. (NASDAQ:TSLA), Alibaba Group Holding Limited (NYSE:BABA), and DraftKings Inc. (NASDAQ:DKNG).
Click to continue reading and see Why These 5 Stocks Are in the Spotlight on Monday.
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Disclose. None. Why These 10 Stocks Are in the Spotlight on Monday is originally published on Insider Monkey.
