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Analysts Are Downgrading These 5 Stocks

In this article, we discuss the 5 stocks recently downgraded by analysts. If you want to see more such stocks on the list, go directly to Analysts Are Downgrading These 10 Stocks.

5. Fate Therapeutics, Inc. (NASDAQ:FATE)

Number of Hedge Fund Holders: 27

Truist analyst Robyn Karnauskas lowered her ratings for Fate Therapeutics, Inc. (NASDAQ:FATE) from “Buy” to “Hold” on Friday, January 6. Karnauskas was primarily moved by the company’s decision to end collaboration with Janssen. She reduced her price target for the biopharmaceutical company from $46 per share to $7 per share.

Meanwhile, Fate Therapeutics, Inc. (NASDAQ:FATE) also announced job cuts as a part of its efforts to limit operating costs. Moving forward, the company plans to prioritize its clinical programs besides discontinuing some of them.

Follow Fate Therapeutics Inc (NASDAQ:FATE)

4. Baxter International Inc. (NYSE:BAX)

Number of Hedge Fund Holders: 42

Morgan Stanley downgraded Baxter International Inc. (NYSE:BAX) from “Overweight” to “Equal-Weight” on Friday, January 6. Analyst Drew Ranieri expects the healthcare company to benefit from the Hillrom deal in the longer run. However, he acknowledged that he failed to estimate the impact that macroeconomic factors would have on Baxter’s legacy business.

Ranieri also expressed concerns over little clarity around the company’s business while going forward. In addition, he cut his price target for Baxter International Inc. (NYSE:BAX) from $70 per share to $55 per share.

Meanwhile, Baxter International Inc. (NYSE:BAX) recently disclosed plans to spin off its renal care segment into a separately listed company. It is also exploring strategic alternatives for its biopharma solutions unit.

Follow Baxter International Inc (NYSE:BAX)

3. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 43

Cowen analyst Vivien Azer lowered her ratings for Constellation Brands, Inc. (NYSE:STZ) from “Outperform” to “Market Perform” on Friday, January 6. The analyst expressed concerns over the downtrading in the company’s premium beer and wine category.

Azer also thinks the company’s beer margins will stay under pressure. She cut her price target for Constellation Brands, Inc. (NYSE:STZ) from $275 per share to $200 per share.

The downgrade came a day after Constellation Brands, Inc. (NYSE:STZ) revised its profit outlook for the full year. The beer and wine producer now expects earnings in the range of $11 – $11.20 per share for fiscal 2023, down from its previous forecast between $11.20 to $11.60 per share.

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2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 97

Bank of America Corporation (NYSE:BAC) received a downgrade just ahead of its fourth-quarter earnings. Deutsche Bank slashed its ratings for the Charlotte-based banking giant from “Buy” to “Hold” on Friday, January 6.

The research firm predicted new lows for U.S. bank stocks. Deutsche Bank analyst Matt O’Connor expects downside risk in case of a recession. O’Connor lowered his price target for Bank of America Corporation (NYSE:BAC) from $45 per share to $36 per share.

Major U.S. banks, including Bank of America Corporation (NYSE:BAC), are set to report their earnings this week. Analysts expect lower fourth-quarter profit primarily amid an economic downturn.

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1. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the best stocks in the digital payments space due to its solid business fundamentals and strong balance sheet. However, KeyBanc analyst Josh Beck believes the company is facing intense competition from rivals, like Apple Pay and Shop Pay, which could hamper its growth.

Beck downgraded PayPal Holdings, Inc. (NASDAQ:PYPL) from “Overweight” to “Sector Weight” and reduced his price target from $100 per share to $80 per share on Monday, January 9. The analyst was primarily moved by intensifying competition and changing industry dynamics.

Follow Paypal Holdings Inc. (NASDAQ:PYPL)

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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