In this article, we discuss the top 5 trending stocks today. If you want to check out some more companies making headlines on Tuesday, go directly to Top 10 Trending Stocks Today.
5. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Shares of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) jumped over 10 percent this morning after posting solid sales for the second quarter and lifting its outlook for the full year. The biotech company reported a loss of 41 cents per share, wider than analysts’ average estimate for a loss of 14 cents per share.
On the bright side, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) posted revenue of $144.6 million, representing a massive surge of 231 percent over the comparable period of 2021. The numbers were also way better than the consensus of $77.6 million.
Looking forward, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) projected revenue of $425 – $440 million for the full year, compared to its previous guidance of $375 – $390 million. The revised outlook is above the expectations of $384.5 million.
4. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 43
Shares of Zoom Video Communications, Inc. (NASDAQ:ZM) dropped nearly four percent this morning after Citi downgraded the communications technology company from “Neutral” to “Sell.”
Citi analyst Tyler Radke thinks increasing competition and macroeconomic hurdles would impact the growth of Zoom Video Communications, Inc. (NASDAQ:ZM). He also cut his price target for Zoom stock from $99 per share to $91 per share.
Separately, Zoom Video Communications, Inc. (NASDAQ:ZM) appeared in the first-quarter 2022 investor letter of investment management firm Horos Asset Management. Here’s what the firm said:
“What about the other asset class that has attracted the most attention from the investment community in recent times? Here we can distinguish three major groups. First, those companies without earnings that had convinced investors of their great future growth prospects, pushing up their valuations to irrational levels. A clear example of this, which we mentioned almost two years ago (see here) is Zoom Video Communications (“Zoom”), whose market cap exceeded that of companies such as IBM or came close to that of Cisco Systems. Well, from the time we wrote about this odd situation until today, Zoom shares have collapsed nearly 80%.
Therefore, if interest rates rise (or are expected to rise), company valuations are negatively impacted. This is especially true for those businesses that generate little cash today and the market expects them to generate a lot of cash in the future. Hence the severe losses in companies that promised a lot of cash generation in the future (such as Zoom).”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 60
Shares of Walmart Inc. (NYSE:WMT) rose nearly four percent this morning after posting its fiscal second-quarter results above expectations. The retail giant earned $1.77 per share on an adjusted basis, marginally down from adjusted earnings of $1.78 per share in the year-ago period.
In addition, Walmart Inc. (NYSE:WMT) posted revenue of $152.9 billion, up 8.4 percent over the comparable period of 2021. The results were better than the consensus of $1.63 per share for earnings and $150.9 billion for revenue.
Looking forward, Walmart Inc. (NYSE:WMT) expects consolidated sales of about 4.5 percent for its fiscal 2023. Moreover, it expects its full-year adjusted EPS to drop in the range of 9 – 11 percent, compared to its earlier outlook calling for a decline of 11 – 13 percent.
Discussing the results, CEO of Walmart Inc. (NYSE:WMT), Doug McMillon, said:
“We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing.”
2. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 75
The Home Depot, Inc. (NYSE:HD) came into the spotlight this morning after beating profit and sales expectations for its fiscal second quarter. The Atlanta-based home improvement retailer reported earnings of $5.05 per share, up from $4.53 per share in the same period of 2021.
Revenue for the quarter rose 6.5 percent on a year-over-year basis to $43.8 billion. Analysts expected The Home Depot, Inc. (NYSE:HD) to report earnings of $4.95 per share on revenue of $43.4 billion.
Shares of The Home Depot, Inc. (NYSE:HD) slightly moved up after the opening bell today following its Q2 results.
The Home Depot, Inc. (NYSE:HD) also reaffirmed its financial outlook for the full year. The company expects its earnings per share to grow in the mid-single digits and revenue to grow 3 percent on a year-over-year basis.
1. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 77
Sea Limited (NYSE:SE) delivered mixed results for the second quarter and suspended its e-commerce sales outlook for the full year. As a result, its shares plummeted over 14 percent in the mid-day trading session today.
The Singapore-based consumer internet company reported a loss of $1.03 per share, narrower than analysts’ average estimate for a loss of $1.21 per share. In addition, Sea Limited (NYSE:SE) posted revenue of $2.94 billion, up 29 percent on a year-over-year basis but behind the consensus of $2.97 billion.
Sea Limited (NYSE:SE) also released its segment-wise sales results. Its e-commerce revenue climbed 75.6 percent to $1.76 billion, while digital financial services revenue skyrocketed 214.4 percent to $279 million in the quarter. On the downside, digital entertainment revenue fell 12.1 percent to $900.26 million.
Speaking on the results, CEO of Sea Limited (NYSE:SE), Forrest Li, said in a statement:
“As we navigate the current environment of increased macro uncertainty with that same nimble and decisive approach, we believe it is vital to be thoughtful, prudent, and disciplined. While we have strong resources and are well on-track to achieve our self-sufficiency targets, we are nevertheless rapidly prioritizing profitability and cash flow management. We are confident that this focus, combined with our demonstrated ability to execute, our scale and leadership, and our proven business models, will position us for long-term sustained success.”
You can also take a peek at 10 Stocks to Watch as Cathie Wood’s Fund Starts to Rebound and Jim Cramer Recommends These 10 Stocks For Recession.
