In this article, we will discuss some of the popular stocks making headlines today.
The US equity market is in the red today as investors are gearing up for the earnings season along with new economic data to gauge how the Federal Reserve prepares itself to control rising inflation. As of 10:57 AM ET, the S&P 500 Index, the Dow Jones Industrial Average (DJIA), and the NASDAQ Composite Index are all down 1.08%, 0.45%, and 1.75%, respectively. Amongst stocks making headlines today are Meta Platforms, Inc. (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA).
Let’s look at why these stocks are trending today and discuss how elite funds are positioned in them.
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10. Tesla, Inc. (NASDAQ:TSLA) has plummeted 3.6% as of 10:58 AM ET after the Austin, Texas-based electric vehicle (EV) manufacturer revealed that it sold 65,814 units in March 2022. The increase in production was significantly lower than the Warren Buffett-backed BYD Company Limited (OTC:BYDDY), which reported a meteoric rise of 333% YoY and sold 104,878 units in March.
Tesla, Inc. (NASDAQ:TSLA) exported only 60 cars manufactured by its Shanghai facility as domestic demand swept up the company’s monthly production. Furthermore, Tesla, Inc.’s (NASDAQ:TSLA) Shanghai Factory produced 56,515 vehicles in March. The production reflected a meager increase of 154 units on a sequential basis and was well below the analysts’ forecast.
As of Q4 2021, Tesla, Inc. (NASDAQ:TSLA) was held by 91 hedge funds.
9. Twitter, Inc. (NASDAQ:TWTR) is down 1.1% as of 10:58 AM ET after the San Francisco, California-based social media company announced that CEO Tesla, Inc. (NASDAQ:TSLA) would not be joining the Board of Directors of Twitter, Inc. (NASDAQ:TWTR). According to Dan Ives at Wedbush, an agreement could not be reached between Twitter and Musk on how he would communicate with the public. He also added that now Musk can easily increase his stake in Twitter, Inc. (NASDAQ:TWTR) as he would not be held by the rule that Directors cannot own more than 15% of the company’s shares. There are now rumors in the market that Musk can join forces with a hedge fund and force Twitter to make major strategic changes.
Of the 924 hedge funds in Insider Monkey’s database, Twitter, Inc. (NASDAQ:TWTR) was held by 83 hedge funds as of Q4 2021.
8. Veru Inc. (NASDAQ:VERU) has surged 102.8% as of 11:00 AM ET after the Miami, Florida-based biotech company revealed positive interim results for Sabizabulin during a Phase 3 trial comprising hospitalized patients. Sabizabulin is an investigational COVID-19 therapy. The randomized study was designed to comprehend the efficacy of oral Sabizabulin 9mg dose as compared to a placebo in 150 patients who were at a high risk of developing acute respiratory distress syndrome (ARDS). By day 60, oral therapy revealed a 55% reduction in mortality. Veru Inc. (NASDAQ:VERU) is now planning to apply for an emergency use authorization application with the FDA. Sabizabulin had already received a Fast Track Designation back in January by the FDA.
Overall, eight hedge funds reported owning a stake in Veru Inc. (NASDAQ:VERU) at the end of Q4 2021. Perceptive Advisors is the leading investor in Veru Inc. (NASDAQ:VERU), with a stake worth over $26.2 million.
7. Datto Holding Corp. (NYSE:MSP) has gained 20.8% as of 11:01 AM ET after the cybersecurity and data backup company was acquired by Kaseya for $6.2 billion, funded by private equity firm Insight Partners. The deal also has significant investments from TPG Capital and Temasek. The shareholders of Datto Holding Corp. (NYSE:MSP) will receive $35.50 per share, reflecting a premium of over 21.8% from the closing price. The deal is expected to be completed by the second half of this year, after which Datto Holding Corp. (NYSE:MSP) will go private.
On a sequential basis, the number of hedge funds invested in Datto Holding Corp. (NYSE:MSP) increased by six during Q4 2021 to a total of 17 hedge funds.
6. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is up 29% as of 10:59 AM ET after the Austin, Texas-based cybersecurity firm was acquired by private equity firm Thoma Bravo for $6.9 billion. The agreement assumes a per-share value of $65.25 per share and a revenue multiple of 11x. Analyst Dan Ives at Wedbush termed the deal as a ‘smart strategic move’ by the PE firm and highlighted that the work-from-home culture had increased the demand for cybersecurity services globally.
As of Q4 2021, SailPoint Technologies Holdings, Inc. (NYSE:SAIL) was in the portfolio of 26 hedge funds. HMI Capital was long over 8 million shares of SailPoint Technologies Holdings, Inc. (NYSE:SAIL) during the fourth quarter.
In addition to SailPoint Technologies Holdings, Inc. (NYSE:SAIL), notable stocks trending today include Meta Platforms, Inc. (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA).
5. NVIDIA Corporation (NASDAQ:NVDA) has declined 5.3% as of 10:58 AM ET after the Santa Clara, California-based designer of Graphics Processing Units (GPUs) was downgraded from an Outperform to a Neutral rating at Baird. The price target on NVIDIA Corporation (NASDAQ:NVDA) was reduced from $360 to $225, reflecting a potential upside of over 7% from Friday’s closing price. The analyst observed that order cancellations for customer GPUs have started due to excess inventories. He added that the slowdown in the PC market and the sanctions on Russia would adversely impact NVIDIA Corporation (NASDAQ:NVDA).
Of the 924 hedge funds in Insider Monkey’s database, 110 funds held a stake in NVIDIA Corporation (NASDAQ:NVDA) as of Q4 2021.
4. AT&T Inc. (NYSE:T) shares are 6.8% in the green as of 11:01 AM ET following the WarnerMedia spinoff. Analysts reacted positively to the development, with David Barden at Bank of America reiterating a Buy rating on AT&T Inc. (NYSE:T) with a price target of $25. He highlighted that the stock of the Dallas, Texas-based telecommunication services provider is undervalued, and the spinoff would simplify the business structure and unlock potential upside for investors. The significant decline in dividend from $2.08 to $1.11 has already been priced in the stock.
Overall, AT&T Inc. (NYSE:T) was held by 70 hedge funds at the end of Q4 2021. Citadel Investment Group is the leading investor in AT&T Inc. (NYSE:T), with a stake worth over $1 billion.
3. Apple Inc. (NASDAQ:AAPL) has dropped 2.2% as of 11:01 AM ET after reports that the Cupertino, California-based tech giant has started manufacturing iPhone 13 units in India to diversify its supply chain from China. The production is taking place at a facility in Southern Tamil Nadu under Foxconn, a Taiwan-based manufacturing partner of Apple Inc. (NASDAQ:AAPL).
Apple Inc. (NASDAQ:AAPL) is the ninth most owned stock amongst the hedge funds covered by Insider Monkey. As of Q4 2021, 134 hedge funds held a stake in Apple Inc. (NASDAQ:AAPL).
2. Meta Platforms, Inc. (NASDAQ:FB) has fallen 3% as of 10:59 AM ET after a New York Post report revealed that a group of shareholders is dissatisfied with the weak style of leadership exhibited by Mark Zuckerberg, causing the stock to lose 34% of its value since the start of the year. The investors are planning to present two resolutions at the annual shareholder’s meeting that would provide oversight on Facebook, Instagram, and the potential ‘dystopian downsides’ of Zuckerberg’s adventure into the metaverse.
Meta Platforms, Inc.’s (NASDAQ:FB) advertising business has come under fire due to privacy restrictions imposed by Google and Apple. Meta Platforms, Inc. (NASDAQ:FB) is also facing multiple antitrust lawsuits with claims that Zuckerberg lied to his investors regarding the adverse impact of Instagram on teens.
Out of the 924 hedge funds covered by Insider Monkey, 224 funds had a stake in Meta Platforms, Inc. (NASDAQ:FB) as of Q4 2021.
1. NetEase, Inc. (NASDAQ:NTES) has jumped 2.5% as of 11:01 AM ET after a Bloomberg report shared that the Chinese government has given the go-ahead to the first batch of video game licenses. The list of approved titles has been shared with developers and will be shortly up on the website of the National Press and Public Administration. NetEase, Inc. (NASDAQ:NTES) is a Chinese company that provides self-developed PC-client and video games globally.
As of Q4 2021, NetEase, Inc. (NASDAQ:NTES) was held by 35 hedge funds.
You can also take a peek at the 10 Dividend-Paying Consumer Defensive Stocks and 10 Value Stocks to Buy According to Joel Greenblatt.
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Disclose. None. 10 Stocks Making Headlines on Mondayis originally published on Insider Monkey.
