In this article, we will discuss some of the notable stocks getting crushed on Tuesday.
The losses in the US equity market for April are continuing on Tuesday with investors preparing for the earnings reports of big tech companies such as Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL). The S&P 500 Index, the Dow 30 Index, and the NASDAQ Composite Index are all down 1.89%, 1.56%, and 2.98%, respectively, as of 12:13 PM ET. Some of the popular stocks moving the market down today include Snap Inc. (NASDAQ:SNAP), Rivian Automotive, Inc. (NASDAQ:RIVN), and Twitter, Inc. (NASDAQ:TWTR).
Let’s look at why these stocks are getting crushed today and discuss how hedge funds are positioned in them.
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10. Tesla, Inc. (NASDAQ:TSLA) has fallen 10.17% as of 12:09 PM ET and is hovering around its six-week low following the news that Tesla, Inc. (NASDAQ:TSLA) would not be allowed to import EVs from China and sell them in India. This statement was made by Indian Transport Minister Nitin Gadkari. Tesla, Inc. (NASDAQ:TSLA) had been working behind the scenes with lobbyists to allow their import into India and get the tariffs lowered.
As of Q4 2021, 91 hedge funds held a stake in Tesla, Inc. (NASDAQ:TSLA).
9. General Electric Company (NYSE:GE) has plummeted 12.63% as of 12:10 PM ET after the Boston, Massachusetts-based industrial conglomerate highlighted that the lockdowns in China due to COVID-19 and the Russia-Ukraine conflict have adversely impacted its supply chain. Furthermore, General Electric Company (NYSE:GE) is also expected to face inflationary pressures; these factors can place the full-year EPS guidance at risk. Although the company reiterated the outlook provided in January under the current global trend, General Electric Company (NYSE:GE) is anticipated to hit the lower end of the range. In January, the company forecasted its FY 2022 EPS to be around $2.80 to $3.50.
Of the 924 hedge funds in Insider Monkey’s database, General Electric Company (NYSE:GE) was held by 57 hedge funds at the end of Q4 2021.
8. Universal Health Services, Inc. (NYSE:UHS) has declined 9.99% as of 12:10 PM ET after the Pennsylvania-based provider of hospital and healthcare services reported weaker-than-expected earnings results. Universal Health Services, Inc. (NYSE:UHS) reported an adjusted EPS of $2.15, missing the analysts’ forecast of $2.47. Universal Health Services, Inc. (NYSE:UHS) was unable to meet the bottom line forecast as it faced significant pressure due to rising labor costs. Moreover, the possibility of a rising interest rate does not play in favor of a highly leveraged company.
Overall, 35 hedge funds held a stake in Universal Health Services, Inc. (NYSE:UHS) as of Q4 2021.
7. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has crashed 4.74% as of 12:10 PM ET after the company reported that it anticipates lower than expected profits this year due to a “messy” combination of assets following the closure of the merger between WarnerMedia and Discovery on April 8. The outcome of “unexpected projects” and disappointing operating profit and cash flow results for Q1 2022 was a major reason that led to the new guidance. One of the “unexpected projects” could be CNN+ as the CEO David Zaslav decided to close the streaming service only after a month of its launch. Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock is currently trading at its lowest level since April 8.
Southeastern Asset Management is the leading investor in Warner Bros. Discovery, Inc. (NASDAQ:WBD), with a stake worth over $285.9 million as of Q4 2021.
6. NIO Inc. (NYSE:NIO) has descended 4.94% as of 12:10 PM ET after the production and demand of EVs have come under pressure due to concerns related to COVID-19 lockdowns. According to industry experts, the sale of passenger cars declined by 11% YoY during March 2022, and the sale is expected to take a dip of 32% YoY during April. The extended lockdowns are causing supply chain concerns and also putting a dent in demand. Car manufacturing hubs like Guangdong, Jilin, and Shanghai have faced strict lockdowns, and these regions were responsible for one-third of the total car production in 2021.
According to Insider Monkey’s proprietary data, NIO Inc. (NYSE:NIO) was held by 30 hedge funds at the end of Q4 2021. ARK Investment Management has a stake worth over $8 million in NIO Inc. (NYSE:NIO) as of Q1 2022.
Along with NIO Inc. (NYSE:NIO), some other notable stocks that are falling today include Snap Inc. (NASDAQ:SNAP), Rivian Automotive, Inc. (NASDAQ:RIVN), and Twitter, Inc. (NASDAQ:TWTR).
5. Zions Bancorporation, National Association (NASDAQ:ZION) has fallen 8.13% as of 12:12 PM ET after the Salt Lake City, Utah-based regional bank was downgraded from Strong Buy to Market Perform rating by David Long at Raymond James. The analyst highlighted that it is becoming more challenging to pick a stock in the banking sector, and he does not see a particular positive catalyst that could help Zions Bancorporation, National Association (NASDAQ:ZION) outperform other banks. The asset sensitivity of Zions Bancorporation National Association (NASDAQ:ZION) has lessened, and material share repurchase is not an option anymore.
As of Q4 2021, Zions Bancorporation, National Association (NASDAQ:ZION) was held by 27 hedge funds.
4. Snap Inc. (NYSE:SNAP) is 3.64% in the red as of 12:12 PM ET after the target price of the multimedia instant messaging application was revised down from $40 to $34 by Ygal Arounian at Wedbush. The target provides a modest potential upside of 13.67% from the last closing price. Ygal highlighted that the massive popularity of TikTok is shaping trends for social media companies globally. The analyst viewed Snap Inc.’s (NYSE:SNAP) earnings results as mixed because the company was unable to achieve the consensus revenue estimates for Q1 2022.
During Q2 2022, Bailard Inc was long over 25,982 shares of Snap Inc. (NYSE:SNAP). Of the 924 hedge funds in Insider Monkey’s database, Snap Inc. (NYSE:SNAP) was held by 55 funds as of Q4 2021.
3. JetBlue Airways Corporation (NASDAQ:JBLU) has fallen 9.49% as of 12:12 PM ET after the New York-based low-cost airline reported higher operating expenses and concerns related to operational capabilities. The extreme cold weather on the east coast also adversely impacted the financials of the airline as it operates 95% of the flights in that region. JetBlue Airways Corporation (NASDAQ:JBLU) anticipates a further capacity decline due to operational challenges. Labor shortages are preventing JetBlue Airways Corporation (NASDAQ:JBLU) from taking the full benefit of revived travel demand.
Overall, JetBlue Airways Corporation (NASDAQ:JBLU) was a member of 34 hedge fund portfolios as of Q4 2021.
2. Rivian Automotive, Inc. (NASDAQ:RIVN) has slid 7.76% as of 12:13 PM ET after the target price of the Irvine, California-based EV company was slashed from $42 to $38 with an Equal Weight rating at Barclays. The analyst highlighted risks related to ramping production and little valuation support for Rivian Automotive, Inc. (NASDAQ:RIVN). During Q1 2022, Rivian Automotive, Inc. (NASDAQ:RIVN) revealed that it produced 2,553 vehicles and delivered 1,227 units, compared to Barclay’s forecast of 1,800 units.
As of Q4 2021, 47 hedge funds held a stake in Rivian Automotive, Inc. (NASDAQ:RIVN).
1. Twitter, Inc. (NASDAQ:TWTR) is down 3.10% as of 12:13 PM ET after the California-based microblogging and social media giant was warned by the EU regarding its acquisition by Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk. One of the prominent regulators in the EU highlighted that Twitter, Inc. (NASDAQ:TWTR) needs to comply with rules related to moderating illegal and harmful content. The EU approved the Digital Services Act last week, which requires Big Tech companies like Twitter, Inc. (NASDAQ:TWTR) to take more responsibility for the content that users post online, along with other requirements.
Of the 924 hedge funds in Insider Monkey’s database, Twitter, Inc. (NASDAQ:TWTR) was held by 83 funds as of Q4 2021.
You can also take a peek at the 12 Best US Stocks to Buy Now and Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio.
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Disclose. None. 10 Stocks Getting Crushed on Tuesday is originally published on Insider Monkey.
