Sell Alert: 10 Stocks Analysts Downgraded on Wednesday

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4. Life360 (NASDAQ:LIF)

Average Upside Potential: 29%

Number of Hedge Fund Holders: 10

Advertising revenue at Life360 came in at $25 million in the third quarter, short of both BofA Securities’ estimate and the Street’s. The firm downgraded the stock on November 11. The Nativo acquisition lifted advertising sharply from a year earlier, yet BofA wants faster monetization. BofA moved Life360 to Neutral from Buy and cut its price target to $45 from $60. It sees no material acceleration in the fourth quarter or in 2027 from the Pet Tracker, Uber or Nativo initiatives. It stays constructive on them over the longer term.

BofA lowered its 2027 revenue and EBITDA estimates, citing weaker advertising and higher sales and marketing spending. At about 19 times 2027 enterprise value to EBITDA, it considers the valuation fair, because strong subscription growth is offset by slower ad monetization.

Life360 sells subscription plans for its family location and safety app. Results were otherwise strong. The company raised its full-year revenue and EBITDA guidance. Management cautioned that US paying-circle growth could slow after recent price increases. Chief Executive Officer Lauren Antonoff said early results from the changes are encouraging.

3. Akamai Technologies (NASDAQ:AKAM)

Average Upside Potential: 50%

Number of Hedge Fund Holders: 62

Evercore ISI downgraded Akamai Technologies to In-Line from Outperform on November 11 and cut its price target to $90 from $150. The firm cites financing concerns and a complex investment cycle, and says the recent financing adds complexity and raises the need for execution. Evercore expects the shares to stay range-bound until the third or fourth quarter of 2027. By then, it says, operating margins should begin to stabilize, Anthropic revenue should be ramping and a path to positive free cash flow should be clearer. It remains constructive on the underlying opportunity.

Akamai topped consensus estimates for third-quarter revenue and adjusted earnings per share. Investors have focused instead on the spending needed to build its cloud business. The company is known for delivering and securing web traffic and now sells cloud computing. Management says it has signed more than $14 billion of multi-year commitments in that business this year. GAAP operating margin fell to 10% in the third quarter as spending rose.

The Anthropic agreement is the largest piece of that backlog, and our piece on the Anthropic deal covers how it came together.

2. Riot Platforms (NASDAQ:RIOT)

Average Upside Potential: 79%

Number of Hedge Fund Holders: 55

Riot Platforms keeps signing leases at a pace few bitcoin miners can match, and Keefe, Bruyette & Woods still moved it to Market Perform from Outperform on November 11. The firm raised its price target to $23 from $20. Investors are focused on how Riot will pay for what it has promised. The company signed a long-term lease at its Corsicana, Texas, site with an unnamed frontier AI lab worth about $28 billion in total. It plans roughly $5.5 billion of non-recourse financing without issuing new equity.

Delivery at Corsicana begins late next year. The build still has to be funded and finished. Chief Executive Officer Jason Les leads the company. Riot is a bitcoin miner converting its Texas sites into data centers for AI. It also has an earlier lease with Anthropic at its Rockdale site. Mining revenue fell in the third quarter as the average bitcoin price dropped.

The company reported a small third-quarter profit against a consensus loss, so the debate centers on funding rather than demand. We looked at whether Riot can fund its data center build after the earlier lease was announced.

1. Nvidia (NASDAQ:NVDA)

Average Upside Potential: 83%

Number of Hedge Fund Holders: 285

A report that Nvidia’s board is weighing the removal of founding Chief Executive Officer Jensen Huang hit the stock hard this week, and Baird downgraded it on November 11. The firm moved Nvidia to Neutral from Outperform and cut its price target to $200 from $500. Baird cites reduced visibility into data center demand for 2027, mostly tied to supply limits, plus uncertainty over US government action on China sales and over the CEO’s tenure. It expects the shares to stay in a trading range.

Baird says hyperscaler capital spending growth could slow to about 40% in 2027. It adds that demand for Nvidia’s latest chips still outpaces supply, but some preemptive orders could be cut. On leadership, the firm wrote, “The odds of CEO transition are increasing into 2027.” Morgan Stanley also removed Nvidia from its top-pick list this week.

Nvidia designs the chips that power AI data centers. Results are due next Tuesday after the close, with analysts expecting earnings of $2.47 a share. Our analysis of why Nvidia trades as if growth will stop covers the valuation side.

READ NEXT: Nvidia (NVDA) Grows Like a Rocket But Still Looks Cheap and Akamai (AKAM) Wants to Be the Bouncer for Your AI Agents

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