Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s Why Alibaba Group Holdings, Alphabet, and Valeant Pharmaceuticals Are in Spotlight Today

Page 1 of 2

US stocks are in the green on Thursday, as investors react to a wave of strong earnings reports from the retail sector. A small decline in weekly jobless claims has also spurred the market to go higher.

In this article we’ll take a look at the results released by Shake Shack Inc (NYSE:SHAK), Alibaba Group Holding Ltd (NYSE:BABA) and Macy’s Inc (NYSE:M), and the latest developments at Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Alphabet Inc (NASDAQ:GOOGL).

While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

retail, sale, display, store, sign, window, shop, price, market, marketing, discount, bargain, buy, save, business, glass window, reduction, selling, clearance, cheap, budget,

Bikeworldtravel/Shutterstock.com

Weak Sales Sink Shake Shack

Shake Shack Inc (NYSE:SHAK)’s stock is down by some 7% so far today, despite surpassing analysts’ forecasts for the second quarter. Investors were clearly not happy with the company’s same-store sales, which rose just 4.5%, below expectations of a 4.8% increase. Shake Shack posted $66.5 million in revenue and earnings of $0.14 per share, topping estimates of $0.13 per share on $63.1 million in revenue. The company also adjusted its full-year guidance as it now expects revenues of $253 to $256 million, above the consensus of $251.9 million. Analysts at Jefferies reacted quickly and lowered their price target to $36 from $38 per share, but maintained their ‘Hold’ rating. Hedge fund interest in Shake Shack Inc (NYSE:SHAK) picked up during the first quarter, as the number of long positions rose to 14 at the end of March, from 11 registered three months earlier.

Follow Shake Shack Inc. (NYSE:SHAK)
Trade (NYSE:SHAK) Now!

Yet Another Controversy

Valeant Pharmaceuticals Intl Inc (NYSE:VRX)‘s woes seem to be far from over. The company is under criminal investigations as the U.S. attorney’s office is looking into the possibility that Valeant and Philidor Rx Services LLC, a now defunct mail-order-pharmacy, defrauded insurers by hiding their relationship. As Philidor helped patients get insurance coverage for Valeant drugs instead of cheaper alternatives, prosecutors are trying to find out if insurers knew about the close ties between the two companies or perceived Philidor as neutral. Valeant’s stock lost nearly 10% in Thursday intraday trading and are currently down by 75% for the year. Despite all its woes, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is still backed by billionaire Bill Ackman, who’s fund, Pershing Square, holds a 9% stake in the company.

Follow Valeant Pharmaceuticals International Inc. (NYSE:VRX)
Trade (NYSE:VRX) Now!

Turn the page to see why Alphabet’s shares are slightly down today, what’s the deal with Alibaba’s second quarter and why investors are going crazy over Macy’s.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!