In this article, we discuss the 5 stocks plummeting after the fed’s latest rate hike. If you want to see some other stocks on the list, go directly to These 10 Stocks are Plummeting After the Fed’s Latest Rate Hike.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Shares of Tesla, Inc. (NASDAQ:TSLA) dropped nearly three percent on Wednesday, September 21, after the recent hike from the U.S. central bank. Earlier this month, Piper Sandler analyst Alexander Potter had predicted that the company’s shares would likely move down in the coming weeks.
Back then, Potter said Tesla, Inc. (NASDAQ:TSLA) shares could fall due to a spike in interest rates and weakness in China. The latest drop after the Fed’s recent rate hike suggests that the prediction has come true.
Nevertheless, most analysts, including Potter, are bullish on Tesla, Inc. (NASDAQ:TSLA), given the increasing demand for EVs around the world. Potter has been keeping an “Overweight” rating and a price target of $360 for the stock.
4. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Several U.S-listed Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA), also responded to the latest rate hike from the Fed. The stock fell approx. five percent on Wednesday, September 21, 2022.
Alibaba Group Holding Limited (NYSE:BABA) shares have been under pressure over the past year due to increasing regulatory scrutiny from both China and U.S. The stock is down about 30 percent on a year-to-date basis. Meanwhile, a slowdown in China’s economy has also negatively affected the company’s sales growth.
Separately, Alibaba Group Holding Limited (NYSE:BABA) appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third party online payment provider. Shares of Alibaba rose during the quarter, driven by an increasing focus on improving capital allocation, an improving regulatory environment, and government stimulus targeting Chinese consumers. We retain conviction that Alibaba will benefit from rapid growth in cloud services, logistics, and retail.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Most analysts consider Apple Inc. (NASDAQ:AAPL) a high-quality stock that could steer through any uncertain macro environment better than others. However, Apple shares also slipped over two percent on Wednesday, September 21, after the Fed’s latest rate hike.
However, the drop seems to be a part of a broader sell-off on Wall Street. Apple Inc. (NASDAQ:AAPL) shares are expected to regain their lost value, given the strong fundamentals of the smartphone giant.
Meanwhile, Apple Inc. (NASDAQ:AAPL) continues to enjoy the solid demand for its products despite macroeconomic challenges. Its recently launched iPhone 14 is also reportedly performing well.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) is next on the list of 5 stocks that plummeted after the Fed’s latest rate hike. The stock tumbled nearly three percent on Wednesday, September 21.
The social network giant has also been hit by the negative impact of elevated inflation and higher interest rates. Meta Platforms, Inc. (NASDAQ:META) shares have declined about 58 percent on a year-to-date basis.
Last week, Piper Sandler analyst Thomas Champion trimmed its price target for Meta Platforms, Inc. (NASDAQ:META) from $190 per share to $175 per share, citing intensifying competition and weak advertisers’ confidence.
Meanwhile, Meta Platforms, Inc. (NASDAQ:META) is trying to reduce costs to make up for the slow growth. The company is reportedly planning to lay off 10 percent of its employees as a part of the cost-cutting measures.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) reacted very much like every other notable U.S. stock on Wednesday, September 21. The stock fell at 2:00 PM ET in the previous trading session after the Fed’s latest rate hike.
The stock extended its downward movement this morning, losing nearly two percent. Overall, Amazon.com, Inc. (NASDAQ:AMZN) shares have lost about 30 percent of their value so far this year.
Much of that drop has been attributed to the ongoing inflationary pressure that has been weighing on the company’s margins. Nevertheless, analysts expect Amazon.com, Inc. (NASDAQ:AMZN) to make a rebound once the inflation and interest rates start decreasing.
You can also take a peek at Best Robotics Stocks To Invest In and 10 Best Cyclical Stocks for Inflation.
