In this article, we take a look at five stocks that are in the spotlight on Monday. If you want to take a look at some more stocks that are trending on Monday and the latest market situation, go to Why These 10 Stocks Are in the Spotlight on Monday.
5. Tesla, Inc. (NASDAQ:TSLA) has lost 5.04% of its value as of 12:47 PM ET after the Austin, Texas-based electric vehicle (EV) company disclosed that it would ramp up its daily production from the current level of 1,200 units per day to 2,600 units per day by May 23. This means that the biggest automobile company in the world in terms of market capitalization will require one more week to increase its daily production by operating a plant on multi-shift basis. Investors have received this news negatively as this will harm Tesla, Inc.’s (NASDAQ:TSLA) production numbers for Q2 2022. Furthermore, Tesla, Inc. (NASDAQ:TSLA) also announced that it would recall around 107,000 vehicles in China due to safety-related risks.
Overall, 91 hedge funds held a stake in Tesla, Inc. (NASDAQ:TSLA) at the end of Q4 2021.
4. SoFi Technologies, Inc. (NASDAQ:SOFI) has ascended 3.70% as of 12:48 PM ET after Kevin Barker at Piper Sandler upgraded the stock from a Neutral to an Overweight rating with a price target of $10. The target assumes a potential upside of 48.14% from the last closing price. The stock price of SoFi Technologies, Inc. (NASDAQ:SOFI) has lost 70% of its value in the last six months, primarily because of the extension of the student loan moratorium by the US government and a hike in interest rates. The analyst thinks that the sell-off in stock is overdone in the market as SoFi Technologies, Inc. (NASDAQ:SOFI) is expected to experience strong growth in EBITDA during the second half of this year and 2023.
SoFi Technologies, Inc. (NASDAQ:SOFI) was held by 24 hedge funds at the end of Q4 2021.
3. Alibaba Group Holding Limited (NYSE:BABA) has fallen 0.75% as of 12:45 PM ET despite a double upgrade from Alex Yao at JP Morgan. The analyst upgraded Alibaba Group Holding Limited (NYSE:BABA) stock from an Underperform to an Overweight rating and increased the target price from $75 to $130. The revised target provides a potential upside of 47.4% from the previous closing price. Yao thinks that the “significant uncertainties” hanging over the Chinese internet stocks have reduced following the recent regulatory announcements. He anticipates digital entertainment, e-commerce, and local service-providing stocks to outperform very soon.
On a sequential basis, the number of hedge funds invested in Alibaba Group Holding Limited (NYSE:BABA) decreased by 19 to 96 hedge funds as of Q4 2021. Fisher Asset Management was the leading hedge fund investor in Alibaba Group Holding Limited (NYSE:BABA) during Q1 2022.
2. Nio Inc. (NYSE:NIO) has gained 2.38% as of 12:49 PM ET after the stock of the Chinese electric vehicle company was upgraded to a Buy rating with a price target of $26 by Ming Hsun Lee at Bank of America. The target price provides a potential upside of 81.69% from the last closing price. The analyst thinks that an increase in sales will improve margins during the second half of this year, and the negative developments related to Nio Inc. (NYSE:NIO) have already been factored in by investors. The analyst sees a strong model cycle and order backlog as key catalysts for Nio Inc. (NYSE:NIO).
As of Q4 2021, Nio Inc. (NYSE:NIO) was held by 30 hedge funds.
1. DraftKings Inc. (NASDAQ:DKNG) has ascended 1.36% as of 12:50 PM ET after coverage on the Boston, Massachusetts-based online betting firm was reinstated by David Katz at Jefferies with a Buy rating and a price target of $33. In a note issued to investors earlier today, the analyst highlighted that the current risk and return of DraftKings Inc. (NASDAQ:DKNG) stock are very favorable. Furthermore, DraftKings Inc. (NASDAQ:DKNG) is best positioned in the digital betting industry with a strong brand, the advantage of being the first mover, and clarity regarding strategy moving forward. Katz also thinks that the market’s concern about DraftKings Inc.’s (NASDAQ:DKNG) ability to sustain its EBITDA burn through cash is over the top.
Overall, DraftKings Inc. (NASDAQ:DKNG) was held by 34 hedge funds as of Q4 2021.
You can also take a peek at the 10 Software Stocks to Buy Now According to Jim Davidson’s Silver Lake Partners and 10 Favorite Stocks of Dan Loeb’s Third Point.
