Hedge funds and other investors will no doubt be sharply
focused on Snap’s stock Thursday after the
photo-messaging application provider reported disappointing
results when it delivered its first earnings reports after the
market closed Wednesday. Shares of Snap plunged about 25
percent in after-hours trading after revenues came in below
estimates while user growth was slower than analysts were
looking for. Its net loss also expanded to $2.2 billion, in
part due to hefty compensation deals.
We won’t know for another few days who held the
stock as of the end of the first quarter. However, as we
earlier reported, several hedge funds made sizable bets on the
company when it was private. They include
Glade Brook Capital Partners,
Lone Pine Capital,
Coatue Management, and
York Capital Management.
Shares of hedge fund favorite Allergan fell 3.7 percent, to
$229.72, after Goldman Sachs downgraded the shares of the drug
giant to neutral from buy and set a $262 price target,
asserting it lacks a short-term catalyst, according to reports.
On Tuesday the company reported mixed results; the stock closed
down that day after initially rising. At the end of 2016
Allergan was the thirteenth most
popular hedge fund stock. It will be interesting to see the
ownership positions after hedge funds file their first quarter
U.S. stock holdings, due by Monday.
Credit Suisse trimmed its price target on hedge fund
favorite Priceline Group from $2,050 to $2,020 but kept its
outperform rating on the stock after the internet travel agency
reported first quarter results.
"Given a favorable demand environment with healthy macro
trends and no significant changes to the competitive landscape,
we remain constructive on Priceline given low market share,
track record of execution and undemanding valuation given
expected 25 percent unit growth in 2017," the bank tells
clients in a note. The stock closed down 4.5 percent on
Wednesday, at $1,824.77.
Valeant Pharmaceuticals International jumped another 5.2
percent, to $12.68, one day after the company reported a volume
of asset sales and debt reduction that apparently met investor
approval. Over the past two days the stock has gained more than
30 percent. Even so, it is still down nearly 13 percent for the