Home Hedge Funds Hedge Funds Favored Only Two of the Six MATANA Stocks Last Quarter

Hedge Funds Favored Only Two of the Six MATANA Stocks Last Quarter

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Amid claims that the new face of big tech stocks should be MATANA and not FAANG, TipRanks’ Hedge Fund Trading Activity tool (which leverages data from Form 13-F to offer hedge fund signals) shows that hedge funds bought only Microsoft and Apple stocks, while ditching Tesla, Amazon, Nvidia, and Alphabet stocks, in the last quarter.

Now, let’s delve deeper into the discussion and understand why these MATANA stocks spiked hedge funds’ interest and by how much.

Macro uncertainty, COVID-led restrictions in China, and currency headwinds have dragged Microsoft stock down. As of now, hedge funds seem to be enjoying the dip in the stock, which is down 27% so far this year. TipRanks’ Hedge Fund Trading Activity tool shows that hedge funds bought 12.7M MSFT shares in the last three months. 

Several hedge fund managers, including David Blood of Generation Investment Management and Ray Dalio of Bridgewater Associates, have bought MSFT stock. 

Is Microsoft a Buy Right Now?

MSFT stock commands a Strong Buy consensus rating on TipRanks based on 28 Buys and two Holds. MSFT’s average price forecast of $327.41 implies upside potential of 33.8%. Overall, MSFT stock has an Outperform Smart Score of nine out of 10, indicating that MSFT has strong potential to beat market expectations. 

Apple stock has lost approximately 15% of its value so far in 2022. While Apple continues to benefit from solid demand for its products and new launches, supply shortages, the geopolitical crisis in Europe, and inflationary pressure on consumer spending have led to a correction in its price. 

Nevertheless, AAPL stock has a positive signal from hedge fund managers. Per TipRanks’ Hedge Fund Trading Activity tool, hedge funds bought 11.1M AAPL stock last quarter.

The list of hedge fund managers who pressed a Buy button on AAPL stock includes Ray Dalio of Bridgewater Associates, Rick Fine of Sensible Financial Planning & Management, and Steven Baum of Cypress Funds.

Is Apple a Buy or Sell?

On TipRanks, APPL stock has a Strong Buy consensus rating, which is based on 23 Buys, four Holds, and one Sell. Further, AAPL’s average price forecast of $183.56 implies upside potential of 21.8%. Further, AAPL stock sports a ‘Perfect 10’ Smart Score on TipRanks. 

The ongoing production and cost headwinds (chip shortages, COVID-led lockdowns in China, rising battery costs) are some of the reasons why the shares of this EV maker have dropped about 14% so far this year. 

Given the production headwinds, hedge funds have been selling TSLA stock. In the last quarter, hedge funds sold 1.2M TSLA stock. Catherine Wood of ARK Investment Management, Theofanis Kolokotrones of PRIMECAP Management, and several other hedge fund managers have also reduced their exposure to TSLA stock. 

Is Tesla Stock a Buy, Sell, or Hold?

TSLA stock has a Moderate Buy consensus rating on TipRanks, which is based on 19 Buys, six Holds, and five Sells. TSLA’s average price prediction of $310.31 implies upside potential of 2.3%. Meanwhile, TSLA stock has a Neutral Smart Score of five out of 10 on TipRanks, suggesting its performance could be in line with the broader market. 

Amazon stock is down about 26% year-to-date. Tough year-over-year comparisons, a slowdown in growth, and margin headwinds are behind this correction. Given the weak macro environment and uncertainty, AMZN stock has a negative signal from hedge fund managers. 

Several hedge fund managers, including Terry Lee of Lee Financial Group Hawaii and William P. Stewart of Stewart Asset Management, have lowered their exposure to AMZN stock. Overall, hedge funds sold 5.7M AMZN stock in the last three months.

Is Amazon a Buy, Hold, or Sell?

Wall Street is bullish about the prospects of AMZN stock, which enjoys a Strong Buy consensus rating based on 37 Buy and 1 Hold. Further, AMZN’s average price target of $177.05 implies upside potential of 43.3%. However, AMZN has a Neutral Smart Score of six out of 10 on TipRanks. 

Due to the weakness in gaming, crypto mining, and professional visualization segments, Nvidia stock is down over 50% year-to-date. Further, weakness in consumer demand amid macro and geopolitical headwinds and the U.S. government’s stringent license requirement for exports to China could remain a drag for the stock. 

Given the challenges, hedge funds decreased holdings in NVDA stock by 415,800 shares last quarter. However, Catherine Wood and Frank Sands of Sands Capital Management are among the fund managers who have recently bought NVDA.

What Is the Prediction for Nvidia Stock?

NVDA’s average price prediction of $206.71 implies 56.6% upside potential. On TipRanks, Nvidia has a Moderate Buy consensus rating, which is based on 23 Buys and nine Holds. Further, the company has a Neutral Smart Score of six out of 10. 

The moderation in ad-spending and uncertain macro environment has pulled Alphabet stock down about 29% year-to-date. This is the main reason why hedge fund managers have sold 132.1M GOOGL stock in the last three months.

What Is the Target Price for GOOGL?

GOOGL’s average price target of $142.91 implies 39% upside potential. Wall Street analysts continue to back GOOGL stock, which commands a Strong Buy consensus rating based on 30 Buys and two Holds. However, GOOGL stock carries a Neutral Smart Score of five out of 10 on TipRanks. 

Bottom Line

Investors can leverage the TipRanks’ Hedge Fund trading activity tool to gauge the direction of a stock. While keeping an eye on hedge fund managers’ activity is important, investors shouldn’t completely rely only on this tool to make investment decisions. Instead, they could leverage TipRanks’ valuable tools and screeners to make an informed decision. 

Using TipRanks’ Stock Comparison tool, here is the summary of how MATANA stocks stack up on TipRanks’ valuable datasets.

Investors can also use TipRanks’ Top Hedge Fund Managers tool to discover the performance and ranking of hedge fund managers. 

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