Why These 10 Stocks Are in the Spotlight on Monday

Published May 16, 2022 at 4:07 pm EDT Updated September 7, 2026 at 11:31 am EDT

In this article, we will discuss 10 stocks that are in the spotlight today.

US stocks are continuing their decline on Monday as investors are reacting negatively to concerns related to growth due to rising inflation that is resulting in the interest rate hike by the Federal Reserve. As of 12:51 PM ET, the S&P 500, the Dow 30 Index and the NASDAQ Composite Index are down 0.34%, 0.03%, and 1.05%, respectively. Some popular names making the headlines today include Tesla, Inc. (NASDAQ:TSLA), Alibaba Group Holding Limited (NYSE:BABA), and DraftKings Inc. (NASDAQ:DKNG).

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Let’s look at why these stocks are in the spotlight today and discuss how hedge funds are positioned in them.

10. Netflix, Inc. (NASDAQ:NFLX) is 0.27% in the green as of 12:41 PM ET after the stock of the Los Gatos, California-based streaming giant was upgraded from a Neutral to an Outperform rating with a price target of $280 by Michael Pachter at Wedbush. The analyst thinks that the release of Stranger Things and Ozark in two halves will reduce the churn rate and increase subscriber growth. Pachter further added that the recent losses incurred by Netflix, Inc. (NASDAQ:NFLX) are due to its saturation in the US and Canada. To overcome this issue, Netflix, Inc. is cracking down on password sharing, which will ensure that free riders do not enjoy the company’s services. Furthermore, the company is planning to introduce an advertisement-based service to target subscribers who are unwilling to pay the monthly fee.

According to Insider Monkey’s proprietary data, 113 hedge funds held a stake in Netflix, Inc. as of Q4 2021.

9. Twitter, Inc. (NASDAQ:TWTR) has slumped 6.05% as of 12:45 PM ET after Dan Ives at Wedbush securities highlighted that acquiring the social media microblogging platform for $54.20 per share is not possible under the current circumstances. The stock prices of companies like Twitter, Inc. (NASDAQ:TWTR) have come under immense pressure due to valuation concerns following the hike in interest rates by the Federal Reserve. Furthermore, Twitter, Inc. also disclosed fake accounts and automated bots issues during its latest earnings results. Ives thinks Elon Musk’s disclosure that he is putting the deal on hold could be a violation of the nondisclosure agreement. The deal has become too complicated to predict whether the richest person in the world would go ahead with it or abandon it.

As of Q4 2021, the number of hedge funds invested in Twitter, Inc. stood at 83. Renaissance Technologies was long over 2 million shares of Twitter, Inc. during Q1 2022.

8. The Trade Desk, Inc. (NASDAQ:TTD) is up 1.12% as of 12:48 PM ET after the stock of the Ventura, California-based digital advertisement platform was upgraded to a Buy rating with a price target of $80 by Mark Kelley at Stifel. The target price provides an upside potential of 54.08% from the last closing price. The analyst highlights that the changing dynamic in the digital streaming industry will be a positive catalyst for The Trade Desk, Inc. (NASDAQ:TTD). The investment firm has rethought its position on the connected TV advertisement companies following the announcement that Netflix will launch its ad-based streaming service by the end of the year, and Disney+ intends to offer a similar service.

Of the 924 hedge funds tracked by Insider Monkey during Q4 2021, The Trade Desk, Inc. was held by 32 hedge funds.

7. Spirit Airlines, Inc. (NYSE:SAVE) has rocketed 11.07% as of 12:46 PM ET after JetBlue Airways Corporation (NASDAQ:JBLU) commenced a hostile takeover attempt of the company. The Miramar, Florida-based low-cost airline carrier declined a $33 per share bid from JetBlue Airways earlier this month in favor of a prior merger agreement with Frontier Airlines. Spirit Airlines, Inc. (NYSE:SAVE) and Frontier think that the merger would help them compete with their peers with fewer challenges. JetBlue has now offered $30 per share and is encouraging Spirit Airlines, Inc.’s (NYSE:SAVE) shareholders to vote against the merger with Frontier Airlines during the annual shareholder meeting on June 10.

Spirit Airlines, Inc. was held by 19 hedge funds at the end of Q4 2021. PAR Capital Management was the leading hedge fund investor in Spirit Airlines, Inc. during Q1 2022.

6. Twilio Inc. (NYSE:TWLO) has plummeted 9.17% as of 12:46 PM ET after the stock of the California-based customer engagement platform was downgraded from an Outperform to a Neutral rating by William Power at Baird. Meanwhile, the target price was cut from $155 to $120, providing a potential upside of 8.31% from the last closing price. Power shared that during the challenging time for the US economy due to high inflation and interest rate hike, he is switching his focus to companies that provide a global platform and are surrounded by strong free cash flow and balance sheets. In his opinion, Twilio Inc. (NYSE:TWLO) stock does not meet this criterion. Furthermore, Twilio Inc. is facing strong competitive forces, challenges in profitability, and the absence of any short-term catalyst.

Out of the 924 hedge funds covered by Insider Monkey, 80 funds held a position in Twilio Inc. as of Q4 2021.

In addition to Twilio, Inc., some other trending stocks on Monday include Tesla, Inc., Alibaba Group Holding Limited, and DraftKings Inc..

5. Tesla, Inc. (NASDAQ:TSLA) has lost 5.04% of its value as of 12:47 PM ET after the Austin, Texas-based electric vehicle (EV) company disclosed that it would ramp up its daily production from the current level of 1,200 units per day to 2,600 units per day by May 23. This means that the biggest automobile company in the world in terms of market capitalization will require one more week to increase its daily production by operating a plant on multi-shift basis. Investors have received this news negatively as this will harm Tesla, Inc.’s (NASDAQ:TSLA) production numbers for Q2 2022. Furthermore, Tesla, Inc. also announced that it would recall around 107,000 vehicles in China due to safety-related risks.

Overall, 91 hedge funds held a stake in Tesla, Inc. at the end of Q4 2021.

4. SoFi Technologies, Inc. (NASDAQ:SOFI) has ascended 3.70% as of 12:48 PM ET after Kevin Barker at Piper Sandler upgraded the stock from a Neutral to an Overweight rating with a price target of $10. The target assumes a potential upside of 48.14% from the last closing price. The stock price of SoFi Technologies, Inc. (NASDAQ:SOFI) has lost 70% of its value in the last six months, primarily because of the extension of the student loan moratorium by the US government and a hike in interest rates. The analyst thinks that the sell-off in stock is overdone in the market as SoFi Technologies, Inc. is expected to experience strong growth in EBITDA during the second half of this year and 2023.

SoFi Technologies, Inc. was held by 24 hedge funds at the end of Q4 2021.

3. Alibaba Group Holding Limited (NYSE:BABA) has fallen 0.75% as of 12:45 PM ET despite a double upgrade from Alex Yao at JP Morgan. The analyst upgraded Alibaba Group Holding Limited stock from an Underperform to an Overweight rating and increased the target price from $75 to $130. The revised target provides a potential upside of 47.4% from the previous closing price. Yao thinks that the “significant uncertainties” hanging over the Chinese internet stocks have reduced following the recent regulatory announcements. He anticipates digital entertainment, e-commerce, and local service-providing stocks to outperform very soon.

On a sequential basis, the number of hedge funds invested in Alibaba Group Holding Limited decreased by 19 to 96 hedge funds as of Q4 2021. Fisher Asset Management was the leading hedge fund investor in Alibaba Group Holding Limited during Q1 2022.

2. Nio Inc. (NYSE:NIO) has gained 2.38% as of 12:49 PM ET after the stock of the Chinese electric vehicle company was upgraded to a Buy rating with a price target of $26 by Ming Hsun Lee at Bank of America. The target price provides a potential upside of 81.69% from the last closing price. The analyst thinks that an increase in sales will improve margins during the second half of this year, and the negative developments related to Nio Inc. (NYSE:NIO) have already been factored in by investors. The analyst sees a strong model cycle and order backlog as key catalysts for Nio Inc..

As of Q4 2021, Nio Inc. was held by 30 hedge funds.

1. DraftKings Inc. (NASDAQ:DKNG) has ascended 1.36% as of 12:50 PM ET after coverage on the Boston, Massachusetts-based online betting firm was reinstated by David Katz at Jefferies with a Buy rating and a price target of $33. In a note issued to investors earlier today, the analyst highlighted that the current risk and return of DraftKings Inc. stock are very favorable. Furthermore, DraftKings Inc. is best positioned in the digital betting industry with a strong brand, the advantage of being the first mover, and clarity regarding strategy moving forward. Katz also thinks that the market’s concern about DraftKings Inc.’s (NASDAQ:DKNG) ability to sustain its EBITDA burn through cash is over the top.

Overall, DraftKings Inc. was held by 34 hedge funds as of Q4 2021.

You can also take a peek at the 10 Software Stocks to Buy Now According to Jim Davidson’s Silver Lake Partners and 10 Favorite Stocks of Dan Loeb’s Third Point.

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