Cathie Wood is Giving Up on These 5 Tech Stocks

2. Twitter, Inc. (NYSE:TWTR)

Number of Hedge Fund Holders: 68 

Percentage Decline in the Stake: 100%

Twitter, Inc. (NYSE:TWTR) has been featured on the Cathie Wood portfolio since Q4 2016, with minor breaks over the years. ARK Investment Management lowered its Twitter, Inc. (NYSE:TWTR) stake from 1.3 million shares in Q1 2022 to just 1,804 shares in the second quarter of 2022, dumping almost 100% of its position. 

Truist analyst Youssef Squali lowered the price target on Twitter, Inc. (NYSE:TWTR) to $43 from $50 and maintained a Hold rating on the shares on July 19 as part of a broader research note on Digital Advertising Platforms. The analyst said that his downward estimate revisions were a result of a challenging macro environment, foreign exchange headwinds, the Russia/Ukraine war, difficult comps, and the disruptive nature of Musk’s takeover. The analyst observed that if Twitter, Inc. (NYSE:TWTR)’s deal with Musk falls through, the shares could trade in the high $20s.

According to Insider Monkey’s data, 68 hedge funds were bullish on Twitter, Inc. (NYSE:TWTR) at the end of Q1 2022, down from 83 funds in the last quarter. Paul Singer’s Elliott Management is the largest position holder in the company, with 10 million shares valued at approximately $387 million. 

Investment firm ClearBridge Investments discussed the prospects of Twitter, Inc. (NYSE:TWTR) in its Q4 2021 investor letter. Here’s what the fund said:

“Weakness among our holdings in the communication services sector was the other detractor to performance. Twitter shares sold off following weaker than expected third-quarter results, but under new leadership, we see the potential for improved execution and performance as live events and entertainment return to pre-pandemic levels.”