Markets are sharply up on Tuesday as post-Brexit fears abate and in the US, three main indexes are well in the green today.
Among the most noteworthy stocks which are gaining ground today are ReachLocal Inc. (NASDAQ:RLOC), Twilio Inc (NYSE:TWLO), Carnival Corp (NYSE:CCL), Whiting Petroleum Corp (NYSE:WLL) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR). Let’s take a closer look at the latest developments surrounding these stocks today and see the hedge fund sentiment towards each company in question.
We determine hedge fund sentiment by analyzing the equity portfolios of some of the best-performing hedge funds and institutional investors. Through extensive research, we have determined that the due diligence that these investors employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also showed that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).
Media Giant Gannett to Acquire ReachLocal
Shares of ReachLocal Inc. (NASDAQ:RLOC) of have skyrocketed more than 173% in value today after Gannett, the largest U.S. newspaper publisher as measured by total daily circulation, announced that it had reached an agreement to acquire ReachLocal for approximately $156 million. Gannett said that the acquisition of ReachLocal will increase its digital revenue by roughly 50%. In a statement, ReachLocal’s CEO Sharon Rowlands said that the “powerful combination” of Gannett and ReachLocal will drive growth and help the companies in increasing innovation.
Only three funds from our database were bullish on ReachLocal Inc. (NASDAQ:RLOC) at the end of the first quarter. Among them, Douglas T. Granat’s Trigran Investments has the biggest stake, with more than 3.9 million shares of the company.
Twilio: A Hope for the Unicorn Tech Startups
Twilio Inc (NYSE:TWLO), the Unicorn startup from San Francisco, which went public on Thursday, continues to make headlines, amid the hopes it has infused in the startup ecosystem and IPO market dynamics of technology companies. Twilio went at $15 a share, and managed to surge by 91% to reach $28 in a single session. However, the company couldn’t maintain this stock growth due to the Brexit bombshell, which devastated almost everything on the Street. Yesterday on CNBC, Jim Cramer said that Twilio’s performance depicts that unicorns still have value, and they are not just “mythical creatures” with unrealistic valuations and expectations.
We discuss why shares of Carnival Corp, Whiting Petroleum and Petroleo Brasileiro are gaining value today on the next page.