In this article, we discuss the 5 stocks that Michael Burry is selling. If you want to read about some more stocks that Michael Burry is selling, go directly to Michael Burry is Selling These 10 Stocks.
5. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 68
Warner Bros. Discovery, Inc. (NASDAQ:WBD), a media company, provides content across various distribution platforms. The company has increased focus in the digital space in recent years with investments in the streaming and gaming sector. On August 4, the firm posted earnings for the second quarter of 2022, reporting a revenue of more than $9.8 billion, up over 221% compared to the revenue over the same period last year. The firm said it had ended the second quarter with $3,896 million of cash on hand and gross debt of $53 billion.
On August 23, Citi analyst Jason Bazinet maintained a Buy rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $21 from $29, noting the firm offered a direct-to-consumer pivot to investors.
At the end of the second quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 47 in the preceding quarter worth $790.8 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of them. Here is what the fund said:
“We sold the last of our shares in Warner Bros. Discovery, Inc. (NASDAQ:WBD) in early April. Luckily, we were able to sell the majority of our long-held holdings in the crazy run-up that accompanied the Archegos Capital debacle in early 2021. We did, however, re-build a position in the stock when the stock went back down and this second go was disappointing.
We weren’t happy with the shift in strategy from the company’s core non-scripted and documentary content—where it commanded a leading position— into the wider media business it dived into with the Warner Media acquisition. We were also unhappy with the resulting increase in debt levels. It was time to take our money and walk away.”
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) manufactures and markets pharmaceutical products worldwide. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. The sector median in this regard is just eleven years, attesting to the solidity of the business model of the firm compared to peers. These payouts have also registered uninterrupted growth in the past five years. On September 14, the firm declared a quarterly dividend of $0.54 per share, in line with previous.
On September 12, BMO Capital analyst Evan Seigerman maintained an Outperform rating on Bristol-Myers Squibb Company (NYSE:BMY) stock and raised the price target to $94 from $92, noting that the commercial story on Sotyktu will take time to play out for the firm.
At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Bristol-Myers Squibb Company (NYSE:BMY), compared to 70 in the preceding quarter worth $2.4 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Bristol-Myers Squibb Company (NYSE:BMY) was one of them. Here is what the fund said:
“We established a position in Bristol-Myers Squibb Company (NYSE:BMY) , a global biopharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of oncology, immunology, cardiovascular, and neurology. The stock trades at a low valuation relative to its current earnings because the company faces loss of exclusivity on several key drugs over the next eight years, including Revlimid, Eliquis, and Opdivo.
At the same time, Bristol-Myers has multiple new products in the early stages of launch (e.g., Opdualag, Camzyos, Breyanzi, and Reblozyl), a robust new product pipeline (e.g., Deucravacitinib, Milvexian, and CELMoD agents), and a strong balance sheet combined with strong free cash flow generation that the company can use for acquisitions. Management believes these growth drivers can more than offset the loss of exclusivity and drive revenue growth through the end of the decade. Given the company’s low valuation, if the company can execute, we think there is substantial upside in the stock.”
3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) provides travel and restaurant online reservation and related services worldwide. On August 3, the company posted earnings for the second quarter of 2022, reporting earnings per share of $19.08, beating market estimates by $1.41. The revenue over the period was $4.3 billion, up over 99% compared to the revenue over the same period last year and missing analyst estimates by $50 million. The firm said the gross travel bookings were $34.5 billion, an increase of 57% from the prior year quarter.
On August 5, Susquehanna analyst Shyam Patil maintained a Positive rating on Booking Holdings Inc. (NASDAQ:BKNG) stock and lowered the price target to $2,800 from $2,900, noting that travel demand was strong in the second quarter of 2022.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Booking Holdings Inc. (NASDAQ:BKNG), with 761,500 shares worth more than $1.3 billion.
In its Q2 2022 investor letter, L1 Capital International, an asset management firm, highlighted a few stocks and Booking Holdings Inc. (NASDAQ:BKNG) was one of them. Here is what the fund said:
“We have been increasing our investment in Booking Holdings Inc. (NASDAQ:BKNG) which now lies on the edge of the top 10 holdings. The investment thesis for Booking, the world’s largest online travel agent (OTA), was outlined in our inaugural June 2019 Quarterly Report. Back then, no-one could have envisaged the subsequent disruption to the travel industry caused by COVID-19. Today the world, outside of China, has adjusted to COVID-19 and life has largely returned to normal. Travel is rapidly normalising with domestic travel ahead of 2019 levels and international travel recovering strongly (see Figure 9).
Yet Booking’s share price is lower than where it was trading post the onslaught of COVID-19 and pre the widespread approval of vaccines. Yes, travel is discretionary, and yes more challenging economic conditions and higher fuel costs will have a negative impact on the travel industry. However, we consider travel activity recovering to prior trend levels is a question of when, not if. Consumers will adapt to economic circumstances – travelling to cheaper destinations, going on holiday for a shorter period or staying at a lower cost hotel, but we still expect travel activity to rapidly recover.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
On September 16, news publication The New York Times reported that Alphabet Inc. (NASDAQ:GOOG) was considering stepping up monetization in the short-form video format on YouTube. The publication said that the tech giant was readying an announcement to lower barriers to entry for the partner program at YouTube Shorts, allowing more video creators to make money there.
On August 3, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $186 from $183, noting the resilience of the core cloud and search business of the firm despite misses on earnings.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 3.1 million shares worth more than $6.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. On September 13, news platform Axios reported that the company had merged the moderated ad content with the central integrity team which moderates user posts. The merger is part of a larger plan by the tech giant to cost-cut goals as it looks to tighten amid the macroeconomic downturns.
On September 12, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $175 from $190, noting that checks indicated that app tracking transparency headwinds were significant for the firm.
At the end of the second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 the preceding quarter worth $19.3 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
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