In this article, we will take a look at 10 stocks that trended this week. If you want to see some more stocks that made their way into the headlines this week, go directly to Why These 5 Stocks Trended This Week.
It was another volatile week on Wall Street as the major indexes each fell around 3% this week. Due to the decline, the S&P 500 has had the worst September since 2002.
Friday’s increase of 0.6% for the month of August in the Fed’s preferred measure of inflation, the core personal consumption expenditures price index excluding food and energy, didn’t help as the market expected an increase of 0.5%. With the Federal Reserve remaining focused on containing inflation, many investors think the central bank will continue to increase interest rates. Indeed, the 2 year Treasury yield, which is a reflection of the expectations for the federal funds rate, was 4.206%.
If the Federal Reserve continues to increase interest rates, bonds could become more attractive and stocks could become less attractive.
Amid the decline in the market, many tech stocks such as Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) trended.
Other stocks, such as Intel Corporation (NASDAQ:INTC), QUALCOMM Incorporated (NASDAQ:QCOM), and Advanced Micro Devices, Inc. (NASDAQ:AMD) also were in the limelight this week.
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10. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) fell over 8% this week after Bloomberg reported that Apple is pulling back from a production increase for the iPhone 14 given that the expected demand might not be as strong as previously anticipated. Given the iPhone accounts for a substantial percentage of Apple Inc. (NASDAQ:AAPL)’s profits, weaker demand could make it more difficult for the company to grow EPS. Wamsi Mohan of Bank of America also downgraded Apple Inc. (NASDAQ:AAPL) to ‘Neutral’ from ‘Buy’ and set a $160 price target, down from $185 this week.
9. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) declined by over 2% this week due to the broader market decline of around 3%. The stock also trended after Andrew Marok of Raymond James set an ‘Outperform’ rating and $300 price target on Microsoft Corporation (NASDAQ:MSFT), citing Microsoft’s sustainable advantages in scale and deep relationships with many customers in enterprise. Microsoft Corporation (NASDAQ:MSFT) shares are down around 31% year to date.
8. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) fell 3% this week, which was in-line with the decline of the major indexes such as the NASDAQ 100’s 3% decline. Although TikTok could become a competitor to Alphabet Inc. (NASDAQ:GOOG)’s YouTube and search, Alphabet Inc. (NASDAQ:GOOG) still has a lot of advantages. Alphabet Inc. (NASDAQ:GOOG) also announced it would shut down its Stadia streaming service this week.
Lakehouse Capital mentioned Alphabet Inc. (NASDAQ:GOOG) in an investor letter in July 2022,
Alphabet Inc. (NASDAQ:GOOG) reported another strong quarterly result despite the tough macroeconomic conditions. Revenue increased by 13% as Search proved resilient, primarily led by strength in the travel and retail verticals. YouTube advertising growth was lighter and moderated due to a tough comparison period and a general softening in brand advertising spend. That said, YouTube’s user engagement and time spent still continues to grow which bodes well for future monetisation opportunities. Google Cloud outpaced the company’s overall growth with revenue increasing by 36% and while it has yet to show any signs of profitability, we remain supportive of Alphabet continuing to reinvest in its cloud business given the size of the market opportunity ahead. On the cost front, the company added another 10,000 employees during the quarter, but notably, the CFO mentioned that hiring will likely slow down over the next twelve months as the company focuses on greater operating efficiency. Overall, we’re pleased with how the company has performed and are confident that management will be able to control costs, if or when the economic environment becomes more challenging.
7. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) fell 3.3% this week, slightly worse than the 3% decline in the NASDAQ. Investors remain concerned about TikTok’s growth and some investors wonder if Meta Platforms, Inc. (NASDAQ:META)’s metaverse investments will pay off. Although the market could be big, the metaverse will need a lot of investment in the beginning. Amid the market turmoil, Bloomberg reported that Meta Platforms, Inc. (NASDAQ:META) is pausing hiring and planning to cut budgets across most teams.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) fell only 0.69% this week, versus the 3% decline in the NASDAQ. The company continues to benefit from positive analyst commentary. This week, Ronald Josey of Citi reiterated a ‘Buy’ rating and $185 price target on Amazon.com, Inc. (NASDAQ:AMZN), citing the company’s refreshed device line-up that further advances Amazon.com, Inc. (NASDAQ:AMZN)’s connected home vision. Amazon.com, Inc. (NASDAQ:AMZN) shares are down 32% year to date.
Stocks such as Intel Corporation (NASDAQ:INTC), QUALCOMM Incorporated (NASDAQ:QCOM), and Advanced Micro Devices, Inc. (NASDAQ:AMD) also trended this week.
Click to continue reading and see Why These 5 Stocks Trended This Week.
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Disclosure: None. Why These 10 Stocks Trended This Week is originally published on Insider Monkey.
