What Is Going On With These 4 Falling Stocks?

Shares of Cheesecake Factory Inc (NASDAQ:CAKE) are down by 4.44% in early morning trading after the company reported third quarter earnings of $0.59 per share on revenues of $526.69 million, beating profit estimates by $0.03 per share but missing revenue expectations by $8.26 million (notice a trend yet?). Comparable-restaurant sales rose by 2.2% year-over-year while guidance is a bit soft, with management expecting fourth quarter EPS to be $0.50-to-$0.53, versus analysts’ expectations of $0.54 per share. Given the strong U.S economy, we think the trend is still up for this stock and the company will bounce back. Hedge funds were bullish on Cheesecake Factory Inc (NASDAQ:CAKE) in the second quarter. A total of 22 funds reported stakes worth $248.4 million at the end of June, up from 19 funds with $174.5 million in shares at the end of March. Jim Simons‘ Renaissance Technologies owned 420,700 shares at the end of June.

Marvell Technology Group Ltd. (NASDAQ:MRVL) is off by 18.2% as investors sell first and ask questions later after the company’s auditor PricewaterhouseCoopers resigned. Financial statement uncertainty is never good for a company, particularly if shares of the company are down by almost half year-to-date.  Investors will want Marvell Technology Group to clear up the matter before shares can rally again. Hedge funds were mixed on Marvell Technology Group Ltd. (NASDAQ:MRVL) in the time period from April 1 to June 30. Although the number of funds with holdings in the stock increased to 36 from 33, the total value of their holdings in the stock declined to $694.9 million from $1.02 billion.

Disclosure: None