Why Goldman Sachs, Deckers, and Three Other Stocks Are Trending Today

Xerox Corp (NYSE:XRX) is in the red after the Wall Street Journal reported that Xerox’s biggest shareholder, Darwin Deason, has filed a lawsuit to prevent the company from splitting into two. Deason thinks the split violates a 2009 agreement he struck with Xerox when the company bought his business, Affiliated Computer Services Inc. Deason owned around 6.1% of Xerox at the beginning of 2016. Xerox has in turn called Deason’s lawsuit ‘meritless’ and says it will continue to proceed with its planned separation. The number of funds from our database with holdings in Xerox Corp (NYSE:XRX) rose by two quarter-over-quarter to 31 at the end of June.

Wall Street’s two leading investment banks, Morgan Stanley (NYSE:MS) and Goldman Sachs Group Inc (NYSE:GS), are trending after Bloomberg reported that sources say Snapchat has chosen the two to lead its initial public offering, which could potential value the app maker at a $25 billion valuation. Given the traditional IPO fee percentage ranges, Snapchat’s large valuation means plenty of banker fees to go around, and more cash flow for the two financial companies’ shareholders. The IPO of Snapchat could also eventually lead to the IPO of more Silicon Valley companies to come, which again would be good news for the investment banks. According to our data, 68 funds held shares of Goldman Sachs Group Inc (NYSE:GS) and 49 funds were long Morgan Stanley (NYSE:MS) at the end of the second quarter.

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