In this article, we take a look at five stocks that are on the move today. If you want to take a look at some more stocks that are making headlines on Monday and the latest market situation, go to 10 Market-Moving Stocks to Watch on Monday.
5. Amazon.com, Inc. (NASDAQ:AMZN) is up 2.33% as of 12:58 PM ET after the Washington-based diversified technology conglomerate is receiving attention from retail investors following a 20-for-1 stock split. Although the stock split does not change the fundamentals of the business, it is received positively by analysts due to increased participation by retail investors. Along with the stock split, Amazon.com, Inc. (NASDAQ:AMZN) also announced a new share buyback plan of $10 billion, which replaced the previous $5 billion share repurchase plan from 2016. Rohit Kulkarni at MKM Partners has given Amazon.com, Inc. (NASDAQ:AMZN) stock a post-split price target of $180 and reiterated a Buy rating on the stock.
In its Q1 2022 investor letter, Miller Value Partners shared its insights on Amazon.com, Inc. (NASDAQ:AMZN). Here’s what it said:
“For frame of reference, Amazon (NASDAQ:AMZN) bottomed at the same valuation in the financial crisis (side note: Amazon bottomed at 4x EV/GP after the tech bubble burst)! So there’s historical precedent for the lows being in. We will see whether that holds true this time. Regardless, we think there’s significant upside over a 5-year time horizon. The one other topic I want to briefly address is our volatility. We hope to write something about the topic in more depth in the future, but we want our clients and prospective investors to understand our views on it. We think that volatility is significantly misunderstood. We believe it creates opportunities from which we can profit.”
Amazon.com, Inc. (NASDAQ:AMZN) was held by 271 hedge funds at the end of Q1 2022.
4. Spirit Airlines, Inc. (NYSE:SAVE) is 6.55% in the green as of 1:00 PM ET after the Miramar, Florida-based low-cost airline was presented a revised offer by JetBlue Airways Corporation (NASDAQ:JBLU). The new deal includes a $350 million reverse breakup fee from JetBlue Airways as opposed to $200 million previously. JetBlue has offered a special dividend of $1.50 per share to the shareholders of Spirit Airlines, Inc. (NYSE:SAVE) if the deal is approved. The management of Spirit Airlines, Inc. (NYSE:SAVE) is pursuing the deal with Frontier Group Holdings, Inc. (NASDAQ:ULCC) as they think that it has a higher probability of approval from the authorities. The shareholders of Spirit Airlines will vote on the deal with Frontier Group Holdings on June 10.
Of the 912 hedge funds in Insider Monkey’s database, 26 funds held a position in Spirit Airlines, Inc. (NYSE:SAVE) as of Q1 2022.
3. Twitter, Inc. (NASDAQ:TWTR) has slipped 1.92% as of 12:58 PM ET after Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk said that the microblogging and social media platform had breached the terms of the acquisition agreement by declining to provide additional information about the spam accounts. The richest man in the world had agreed to buy Twitter, Inc. (NASDAQ:TWTR) for $54.20 per share, but he has been skeptical about this valuation following the start of the fake account saga. Dan Ives at Wedbush thinks that Musk is creating the ground to abandon the deal without having to pay the $1 billion breakup fee. In case of a material breach, Musk would not be obligated to pay any fee.
Here’s what ClearBridge Investments said about Twitter, Inc. (NASDAQ:TWTR) in its Q4 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Twitter shares sold off following weaker than expected third-quarter results, but under new leadership, we see the potential for improved execution and performance as live events and entertainment return to pre-pandemic levels.”
Twitter, Inc. (NASDAQ:TWTR) was held by 68 hedge funds as of Q1 2022.
2. NVIDIA Corporation (NASDAQ:NVDA) has jumped 0.50% as of 12:59 PM ET after the Santa Clara, California-based graphic processing unit (GPU) manufacturer was selected as one of the top stock picks in the US semiconductor sector by Atif Malik at Citi. The US semiconductor sector has the cloud, cars, and capital expenditure as the three key themes. The sector is also facing an uncertain macroeconomic situation, which has resulted in a 36% contraction in the P/E multiple. Malik thinks that NVIDIA Corporation (NASDAQ:NVDA) will experience “resilient demand” because of networking product cycles and hyper-scale builds in the future.
NVIDIA Corporation (NASDAQ:NVDA) was mentioned in the Q1 2022 investor letter of ClearBridge Investments. Here’s what the investment management firm said:
“Gaming is an attractive end market within the media/technology sector with strong growth and a long runway, particularly in mobile gaming. Unity’s platform provides an engine and toolkit for development and monetization of games, e-commerce and industrial applications, adding to our industry exposure, which also includes Nvidia (NASDAQ:NVDA) in graphic processing chips.”
Overall, 102 hedge funds reported owning a stake in NVIDIA Corporation (NASDAQ:NVDA) at the end of Q1 2022.
1. Nio Inc. (NYSE:NIO) is up 5.39% as of 1:01 PM ET after a report from Kevin Cheng at DigiTimes revealed that the Chinese electric vehicle company is looking to hire personnel for key positions for its new manufacturing plant in the US. The company is looking to recruit resources with overseas work experience and with expertise in car body manufacturing technologies, infrastructure planning, logistics planning, and manufacturing center planning. Nio Inc. (NYSE:NIO) also revealed that it has partnered with Advanced Micro Devices (NASDAQ:AMD) to purchase chips. The chips will be used by the vehicle development division of Nio Inc. (NYSE:NIO) and will not be installed in cars under production.
Nio Inc. (NYSE:NIO) was held by 26 hedge funds as of Q1 2022.
You can also take a peek at the 10 Dividend Growth Stocks Popular on Robinhood and 10 UK Dividend Stocks To Buy.
