Why Are These Five Stocks in the Spotlight Today?

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Alibaba Group Holding Ltd (NYSE:BABA) and JD.Com Inc (ADR) (NASDAQ:JD) are down 5.8% and 7.11%, respectively, as American investors take cues from Shanghai’s 7% drop earlier in the day and cut their holdings in the two Chinese e-commerce stocks. Because Alibaba Group Holding Ltd (NYSE:BABA) and JD.Com Inc (ADR) (NASDAQ:JD) get most of their revenue and profits from China, both stocks have been highly correlated with the Chinese stock index. Given the abnormal volatility in the Shanghai index, look for Alibaba and JD.com to remain tightly correlated with the index until China’s macro situation improves. A total of 71 funds among those we track owned 25.5% of JD.com’s float at the end of the third quarter, while 60 funds were long 2.6% of Alibaba’s float.

Tesla Motors Inc (NASDAQ:TSLA) crossed a major milestone today, as the automaker announced that it had delivered 17,400 vehicles in the fourth quarter, and 50,580 for all of 2015. Tesla Motors Inc (NASDAQ:TSLA)’s fourth-quarter deliveries allowed the company to hit the low end of its 50,000-52,000 deliveries target and gives investors confidence that Tesla will continue executing for the years ahead. Investors were expecting stronger numbers, however, and the NASDAQ’s decline today certainly doesn’t help. Shares of Tesla are off by 7% in morning trading. The hedge fund sentiment around Tesla Motors has been stable, with the number of elite funds long the stock remaining the same at 26 from during the third quarter.

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Disclosure: none

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