5 Most Volatile Stocks to Buy Now

3. Cardlytics, Inc. (NASDAQ:CDLX)

Number of Hedge Fund Holders: 24 

52-Week Price Range ($): 3.50 – 74.23

Cardlytics, Inc. (NASDAQ:CDLX) operates an advertising platform in the United States and the United Kingdom. It is one of the major volatile stocks to invest in. On August 10, BitPay, a cryptocurrency payment provider, revealed that it has added a reward program to its prepaid card with a partnership with cash-back reward platform Cardlytics. Cardlytics is managing the rewards in which BitPay cardholders automatically receive 15% cash back on purchases every time their card is used at participating retailers.

On November 2, Craig-Hallum analyst Jason Kreyer maintained a Hold rating on Cardlytics, Inc. (NASDAQ:CDLX) stock and lowered the price target to $7 from $15, noting that macro conditions have worsened as consumer spending continues to pull back.

Among the hedge funds being tracked by Insider Monkey, Beijing-based investment firm CAS Investment Partners is a leading shareholder in Cardlytics, Inc. (NASDAQ:CDLX) with 5.4 million shares worth more than $50 million. 

In its Q3 2021 investor letter, Headwaters Capital, an asset management firm, highlighted a few stocks and Cardlytics, Inc. (NASDAQ:CDLX) was one of them. Here is what the fund said:

“Sells Cardlytics (“CDLX”). The Cardlytics, Inc. (NASDAQ:CDLX) position was sold during the quarter as it had become an opportunity cost in the portfolio. CDLX was in a small position at the beginning of the year and has subsequently underperformed throughout the year due to a couple of poor strategic acquisitions along with a depressed spending environment from its customer base. The acquisitions were particularly concerning given that the company has not articulated a clear strategic rationale for the deals and have delayed the company’s path to profitability given that both of the acquired companies are generating losses. Given the small size of the position and the need for capital for more attractive investment opportunities, the entire CDLX position was sold during the quarter.”