In this article we will take a look at the some of notable stocks trending today.
Among the stocks that have the spotlight on them on Friday include International Business Machines Corporation (NYSE:IBM), Netflix, Inc. (NASDAQ:NFLX), General Motors Company (NYSE:GM), Toyota Motor Corporation (NYSE:TM), General Electric Company (NYSE:GE), Alibaba Group Holding Limited (NYSE:BABA), and Facebook, Inc. (NASDAQ:FB). Let’s analyze why each stock is trending and how elite funds are positioned among them.
Why do we care about hedge fund activity? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10. General Motors Company is trending because the company reported U.S. sales of 446,997 vehicles in the third quarter, down 218,195 units from the same period last year. General Motors Company’s third quarter sales were negatively affected by the semiconductor supply shortage and also COVID-19 related supply chain disruptions in Malaysia. Tesla’s Elon Musk believes supply for semiconductors will increase next year and GM stock is up around 0.6% on Friday. Of the around 873 elite funds in our database, 86 were long General Motors Company at the end of Q2.
9. Toyota Motor Corporation is in the spotlight after the company reported U.S. sales of 566,005 vehicles for the third quarter, up 1.4%. Although that’s an improvement, Toyota Motor Corporation is down around 0.3% on Friday. 12 elite funds we track were long Toyota Motor Corporation at the end of the second quarter.
8. General Electric Company has surged 2.8% due to today’s Merck antiviral news. General Electric Company has a leading jet engine business that could benefit if air travel returns to normal faster.
General Electric Company shares are up 26% year to date. The number of elite funds we track that were long General Electric Company fell to 67 at the end of Q2 from 68 at the end of Q1.
7. Alibaba Group Holding Limited is down 2.7% after Aaron Kessler of Raymond James downgraded the stock to ‘Outperform’ from ‘Strong Buy’. Kessler feels a recovery in Alibaba Group Holding Limited shares could take longer with the slowing growth in China’s ecommerce and the regulatory environment in China. Ken Fisher‘s Fisher Asset Management owned 14.1 million shares of Alibaba Group Holding Limited at the end of June, up 2% from the prior quarter.
6. Facebook, Inc. is trending after RBC Capital initiated the tech giant with an ‘Outperform’. Analyst Brad Erickson has a $425 price target, writing that he thinks Facebook, Inc. is well positioned to transition ‘to a fuller source of online utility’ through multiple product efforts. Billionaire Mark Zuckerberg owns a substantial holding in Facebook, Inc..
Like General Motors Company, Toyota Motor Corporation, General Electric Company, Alibaba Group Holding Limited, and Facebook, Inc., International Business Machines Corporation and Netflix, Inc. are trending.
5. International Business Machines Corporation is up over 3% after Jefferies initiated the stock with a ‘Buy’. Analyst Kyle McNealy has a $170 price target. Shares of International Business Machines Corporation are also higher due to the broader market strength on Friday. Of the around 873 elite funds in our database, 41 were long International Business Machines Corporation at the end of Q2.
4. Netflix, Inc. is in the spotlight after Michael Morris of Guggenheim upped his price target to $685 from $600. Morris has a ‘Buy’ rating on Netflix, Inc.. The number of elite funds we track that were long Netflix, Inc. rose by 3 from the prior quarter to 113 at the end of the second quarter.
3. Five9, Inc. (NASDAQ:FIVN) is in the spotlight after the company’s shareholders rejected Zoom’s offer to buy the cloud contact center software company. The recent decline in Zoom shares was likely one reason for the rejection. Of the around 873 elite funds in our database, 45 were long Five9, Inc. at the end of Q2.
2. Zoom Video Communications, Inc. (NASDAQ:ZM) is trending after the company’s bid to buy Five9, Inc. was rejected. The merger would have helped Zoom Video Communications, Inc. diversify. Catherine D. Wood‘s ARK Investment Management was long more than 3.66 million shares of Zoom Video Communications, Inc. at the end of June.
1. SunPower Corporation (NASDAQ:SPWR) has surged over 11% after it was announced that the company will join the S&P MidCap 400 index effective Tuesday October 5, 2021. If a company joins an index, some institutions may have to buy shares. D E Shaw was long almost 3.2 million shares of SunPower Corporation at the end of June.
Suggested articles
10 Best Stocks to Buy According to Warren Buffett
Argosy Investors: “I Think Facebook (FB) Should Weather any Kind of Inflation Fairly Well”
Were Hedge Funds Right About Facebook Inc (FB)?
This article is originally published at Insider Monkey.
