In this article, we discuss the 5 Notable Market Movers to Watch on Wednesday. If you want to see some other stocks making big moves today, go directly to 10 Notable Market Movers to Watch on Wednesday.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 29
Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) rose over 11 percent in the mid-day trading session today after the Irvine-based electric vehicle (EV) maker reaffirmed its target of producing 25,000 vehicles in 2022.
The announcement follows a sharp surge in the company’s second-quarter production numbers. Rivian Automotive, Inc. (NASDAQ:RIVN) manufactured 4,401 vehicles in the June quarter, significantly higher than 2,553 in the March quarter.
Earlier this year, asset management firm Baron Funds also talked about Rivian Automotive, Inc. (NASDAQ:RIVN) in its first-quarter 2022 investor letter, stating:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian continued its volatile trading following the stock’s IPO in late 2021, declining 52% in the first quarter as investors rotated out of fast-growing long-duration stocks and as industrywide supply-chain issues delayed Rivian’s production ramp. In addition, even while other automotive companies raised prices due to inflationary pressures, Rivian launched a price increase campaign that was not well communicated and, as a result, was met with dissatisfaction by existing reservation holders. While this was an unforced error, the company quickly corrected course, reversing its decision to raise prices for existing reservations, while maintaining the increase on new buyers (which has not caused a material impact to demand). We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and the company’s strong balance sheet, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
4. RingCentral, Inc. (NYSE:RNG)
Number of Hedge Fund Holders: 43
Shares of RingCentral, Inc. (NYSE:RNG) plummeted over 11 percent this morning after Needham downgraded the provider of cloud-based business communications solutions from “Buy” to “Hold,” citing its decelerating enterprise growth. Needham analyst Ryan Koontz also referred to competition from Microsoft Teams and called it a hurdle in the growth of RingCentral, Inc. (NYSE:RNG).
Separately, investment management firm Carillon Tower Advisers mentioned RingCentral, Inc. (NYSE:RNG) in its first-quarter 2022 investor letter. Here’s what the firm said:
“RingCentral (NYSE:RNG) provides software-as-a-service solutions for global enterprise cloud communications. The firm’s shares have pulled back on fears of potential increased competition and tough comparisons to performance during the COVID-related surge in 2020 and 2021.”
3. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
It has been a rough year for Coinbase Global, Inc. (NASDAQ:COIN). The company’s share price has plummeted nearly 80 percent so far in 2022. The drop was mainly attributed to the declining crypto prices.
Shares of Coinbase Global, Inc. (NASDAQ:COIN) once again fell this morning following a downgrade from Atlantic Equities. The research firm cut its ratings for the cryptocurrency exchange platform from “Overweight” to “Neutral,” citing concerns over the crypto economy.
Atlantic Equities also cut its price target for Coinbase Global, Inc. (NASDAQ:COIN) from $95 per share to $54 per share.
2. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Shares of Altria Group, Inc. (NYSE:MO) turned green in the pre-market trading session on Wednesday, July 6, 2022, following the news that the FDA has suspended its ban on e-cigarettes by Juul Labs.
Juul is an electronic cigarette company partly owned by Altria Group, Inc. (NYSE:MO). The latest development will allow Juul to sell its e-cigarette products for now. Meanwhile, FDA will carry out another review of Juul’s marketing application.
Back in 2018, Altria Group, Inc. (NYSE:MO) acquired 35 percent stakes in Juul in a transaction valued at $12.8 billion. However, Juul’s valuation has sharply plummeted since then amid strict scrutiny from regulators over its nicotine products.
1. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 52
Shares of DoorDash, Inc. (NYSE:DASH) fell over seven percent today following the news that e-commerce giant Amazon has decided to acquire stakes in Grubhub, which is a rival of DoorDash in the online food delivery market.
Amazon will also offer Grubhub’s food delivery services to its Prime members in the U.S. Industry experts believe that the Amazon-Grubhub partnership would likely impact the market share of DoorDash, Inc. (NYSE:DASH).
Meanwhile, DoorDash, Inc. (NYSE:DASH) is already facing difficulties in boosting its sales this year due to decelerating demand for online food delivery services as life has returned to normal in most parts of the country. DoorDash stock has lost more than 50 percent of its value on a year-to-date basis.
You can also take a peek at 10 Stocks to Profit From Inflation and David Abrams’ 2022 Portfolio: Top 10 Stock Picks.
