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⭐ Hedge Fund Favorites
Plus, the reason Tesla engineers are getting a raise.
Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US stocks rose on Friday. A stronger-than-expected jobs report boosted investor sentiment and caused stocks to rebound. The S&P 500 and Nasdaq Composite rose more than 1%, while the Dow gained 307 points. However, all three indexes had a losing week.
📈 | One Notable Gainer: Shares of Krispy Kreme jumped 7% after Piper Sandler upgraded its rating on the company from Neutral to Overweight, raising its price target from $14 to $20 per share. The firm based this upgrade in Krispy' Kreme’s new partnership with McDonald’s, calling it a “game changer.”
📉 | One Notable Decliner: Tesla shares fell 4% and hit a new 2024 low following a Reuters report that the EV giant has killed plans for its affordable $25,000 vehicle.
⭐ | Tomorrow's Trade: Hedge Fund Favorites. Scroll down for more.
Plus, today’s partner simplifies your investment management but also helps you unlock a world of untapped opportunities across all your holdings.
YESTERDAY’S POLL RESULTS
🟨🟨🟨🟨⬜️⬜️ Bullish
🟩🟩🟩🟩🟩🟩 Bearish
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
SWAV (+2%) Shockwave Medical rose after Johnson & Johnson agreed to buy the company for $12.5 billion to broaden its medical device portfolio (CNBC)
ATUS (-5%) Cable service provider Altice USA fell after a Wells Fargo downgrade that cast doubt about a potential acquisition by CHTR (Investing.com)
CNK (+5%) Movie theater chain Cinemark got a boost from a Wells Fargo upgrade from “sell” straight to “buy” due to rising movie-going demand (QZ)
ENPH (-7%) Enphase Energy was the S&P 500’s biggest loser after a Citi downgrade and news that Executive VP David Ranhoff’s plans to step down (SA)
SNOW (+2%) American cloud computing company Snowflake saw its shares rise after Rosenblatt cited strong customer interest and upgraded the stock (TV)
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OVERHEARD ON THE STREET
Reuters: Federal Reserve Governor Michelle Bowman said she continues to see several upside risks to inflation and that it’s not time to cut rates.
WSJ: U.S. employers added a seasonally adjusted 303,000 jobs in March, significantly more than the 200,000 economists expected.
Axios: Meta will begin labeling a wider range of video, audio, and image content as "Made with AI" starting in May.
Axios: Tesla CEO Elon Musk refuted a report from Reuters that the company is killing off a long-planned affordable electric car.
YF: Yellen and Biden said China might “flood” solar panels and EVs into the global markets after Trump predicted an auto market “bloodbath.”
TOMORROW’S TRADE IDEA, TODAY
Meeting of the Minds
Hedge fund managers from all over the country met in New York on Wednesday for the 2024 Sohn Investment Conference.
The conference was full of investment ideas from a number of established veterans and new faces across the industry.
Several economic sectors were mentioned as investment ideas, including e-commerce, semiconductors, and foreign chemical manufacturers.
ASML
Vijay Shilpiekandula of Dilation Capital presented Dutch semiconductor manufacturer ASML (ASML) as his investment idea.
According to Shilpiekandula, the company is an “R&D powerhouse” that looks attractive compared to its competition on a growth-adjusted basis.
Shilpiekandula also highlighted that he expects the company to venture into high-bandwidth memory and generative AI. This makes the stock pick a potential long-term earnings play that benefits from the ongoing gold rush that memory makers and large language models are after.
Shares are up around 37% year-to-date. The company managed to surpass its Q4 revenue and profit expectations but expects revenue this year to be relatively the same as 2023.
Etsy
According to Elliott Investment Management’s Jesse Cohn, Etsy (ETSY) is undervalued right now. He feels that the e-commerce platform has a solid business model that generates cash and has a track record of being consistently profitable.
Shares are down about 17% this year, but according to Cohn, that’s a good reason to buy. Cohn blames Etsy’s slide on the ongoing macroeconomic struggles in consumer spending we’ve seen since the pandemic, alluding to the idea that if consumer spending recovers, Etsy will benefit. Plus, Cohn claims Etsy is still in the initial phases of its operational and monetization process.
Elliot Investment Management is putting its money where its mouth is, currently holding more than 10% of Etsy’s outstanding shares.
Other companies mentioned at the conference included Kao (KAOOY), Solvay (SLVYY), Natera (NTRA), and more. For investors interested in how hedge funds are using their capital, these stocks could provide some great insight.
Which stock do you think will outperform over the next 12 months? |
TOGETHER WITH MAGNIFI
Are you tired of juggling multiple login details for your various investment accounts?
Imagine the convenience of accessing all your accounts from a single platform, gaining a comprehensive view of your investments and actionable insights to enhance your portfolio.
Magnifi simplifies investment management by effortlessly linking all your accounts, from your 401(K) and IRA to over 200 popular brokerages (including Robinhood, Schwab, and Fidelity).
With the help of conversational AI, Magnifi not only simplifies your investment management but also helps you unlock a world of untapped opportunities across all your holdings, enhancing your investment performance.
ON OUR RADAR
Politico: The DOJ is looking into the possibility that RealPage is facilitating price-fixing among property owners and management firms using the product.
Reuters: Zimbabwe is replacing its local currency with a new one backed by gold and foreign currencies, hoping for more stability and lower inflation.
Fortune: Elon Musk says he’s increasing salaries for Tesla engineers because Sam Altman’s OpenAI keeps trying to recruit them.
CBS: McDonald's says it will acquire Alonyal, which owns 225 McDonald's restaurants in Israel, after calls for a boycott over the war with Hamas in Gaza.
Reuters: A US judge ordered British billionaire Joe Lewis to pay a $5 million fine and serve three years of probation for sharing illegal stock tips.
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