It’s been a pretty quiet morning on Wall Street so far, as all three indexes are pretty much flat. The Dow is off by 36 points, the S&P 500 is up by 0.06% and the Nasdaq is 0.26% higher. Among the stocks showing more volatility than most today are Twitter Inc (NYSE:TWTR), Vivint Solar Inc (NYSE:VSLR), Baidu Inc (ADR) (NASDAQ:BIDU), Citigroup Inc (NYSE:C), and Leading Brands, Inc (USA) (NASDAQ:LBIX). Let’s find out why traders are buying and selling these equities and see what the smart money in our database thinks of each stock.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Twitter Rises for the Second Day After Big Deal in Social Media Space
Twitter Inc (NYSE:TWTR) shares have surged by 4.6% in morning trading a day after Microsoft Corporation (NASDAQ:MSFT) agreed to buy LinkedIn Corp (NYSE:LNKD) for $26.2 billion in cash. Given that LinkedIn is a social media company, some traders speculate that Twitter could make for an attractive target as well. Although Twitter has struggled to turn a profit and monetize its audience, the company has hundreds of millions of users and could potentially be profitable if a company with the right plan and resources buys it. Any Twitter buyout is just speculation at this point however. 27 funds tracked by Insider Monkey were long Twitter Inc (NYSE:TWTR) at the end of March, down by three funds from the end of the previous quarter.
Vivint Solar Looks For Financing
Vivint Solar Inc (NYSE:VSLR) is in the green today after Bloomberg published an article reporting that the solar company is seeking growth financing of around $300 million. The financing will help Vivint achieve its April guidance of installing 260 MW for the year and help convince investors that the company can survive in the post-SunEdison world. Nine top funds in our system had a long position in Vivint Solar Inc (NYSE:VSLR) at the end of March, down from ten at the end of December.
On the next page we examine why Baidu, Citigroup, and Leading Brands are trending today.