Analysts Are Downgrading These 5 Stocks

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

5. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 42

Snap Inc. (NYSE:SNAP) shares plummeted over 10 percent on Wednesday, February 1, following its fourth-quarter results. The social media company managed to meet financial expectations for the quarter, reporting adjusted earnings of 14 cents per share on revenue of $1.3 billion. This compares to the consensus of 11 cents per share for earnings and $1.3 billion for revenue.

However, Snap Inc. (NYSE:SNAP) came up with a gloomy sales outlook for the current quarter amid intense competition and an uncertain economic environment. The company expects its sales to drop in the range of 10 – 2 percent for the first quarter.

Subsequently, a couple of research firms downgraded Snap Inc. (NYSE:SNAP) after its recent earnings. Benchmark lowered its ratings for SNAP stock from “Buy” to “Hold,” while UBS cut its ratings from “Buy” to “Neutral” on Wednesday, January 1.

4. Peloton Interactive, Inc. (NASDAQ:PTON)

Number of Hedge Fund Holders: 45

JMP Securities lowered its ratings for Peloton Interactive, Inc. (NASDAQ:PTON) from “Outperform” to “Market Perform” on Wednesday, February 1. The research firm believes PTON’s share price now reflects its full value.

The downgrade follows the company’s financial results for Q2. Peloton Interactive, Inc. (NASDAQ:PTON) reported a loss of 98 cents per share for the three months ended December 31, narrower than a loss of $1.39 per share in the year-ago period.

Revenue for the quarter dropped 30 percent on a year-over-year basis to $792.7 million. Analysts expected Peloton Interactive, Inc. (NASDAQ:PTON) to report a loss of 64 cents per share on revenue of $710 million.

3. First Solar, Inc. (NASDAQ:FSLR)

Number of Hedge Fund Holders: 45

Shares of First Solar, Inc. (NASDAQ:FSLR) fell over six percent on Thursday, February 2, after receiving a downgrade from BofA. Analyst Julien Dumoulin-Smith referred to FSLR stock’s outperformance since August 2022.

Dumoulin-Smith believes First Solar, Inc. (NASDAQ:FSLR) has already benefitted from the Inflation Reduction Act, and there is less room for growth from now on. The analyst cut his ratings for FSLR from “Buy” to “Neutral” and reduced his price target for the stock from $196 per share to $195 per share on February 2.

2. Match Group, Inc. (NASDAQ:MTCH)

Number of Hedge Fund Holders: 54

Oppenheimer downgraded Match Group, Inc. (NASDAQ:MTCH) from “Outperform” to “Perform” on Thursday, February 2, after the dating apps operator posted weak financial results for the fourth quarter.

Match Group, Inc. (NASDAQ:MTCH) recently reported earnings of 30 cents per share for Q4, significantly lower than the consensus of 47 cents per share. The quarterly revenue of $786.15 million also missed the consensus of $787.09 million.

Looking forward, Match Group, Inc. (NASDAQ:MTCH) expects revenue in the range of $790 – $800 million for the current quarter. The outlook compares with the consensus of $817.34 million.

1. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 89

Craig-Hallum cut its ratings for Advanced Micro Devices, Inc. (NASDAQ:AMD) from “Buy” to “Hold” on Wednesday, January 1. Analyst Christian Schwab referred to the near-term headwinds across PC and cloud spaces. Schwab thinks AMD will continue to gain market share, though more likely at a “marginalized pace.”

The downgrade came despite the better-than-expected Q4 performance of Advanced Micro Devices, Inc. (NASDAQ:AMD). The computer processors maker recently earned 69 cents per share on an adjusted basis, beating the consensus of 67 cents per share. The quarterly sales of $5.6 billion also exceeded the consensus of $5.5 billion.

For the current quarter, Advanced Micro Devices, Inc. (NASDAQ:AMD) expects to generate revenue of around $5.3 billion, down 10 percent on a year-over-year basis and slightly below the consensus of $5.47 billion.

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