Amazon (AMZN): A Lone Star in the Firmament
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Hedge funds, typically known for their shrewd maneuvers, have altered their trajectory in the realm of technology stocks. The once-venerated “Magnificent Seven” technology stocks witnessed a tide, with hedge funds turning from net buyers to sellers. But among this celestial retinue, there exists a lone star – Amazon (NASDAQ:AMZN). While its counterparts have soared to astronomical heights, Amazon continues to beckon hedge fund luminaries. These financial stargazers persist in amassing AMZN shares, underlining their confidence in the e-commerce titan even as its trajectory lags behind its peers. Despite a commendable 82% surge in the past year and an impending inclusion in the coveted Dow Jones Industrial Average, Amazon’s ascent remains tempered compared to its tech brethren.
Liberty Global (LBTYA, LBTYB, LBTYK): The Underrated Powerhouse
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Straying from the limelight, Liberty Global (NASDAQ:LBTYA, NASDAQ:LBTYB, NASDAQ:LBTYK), a British telecom entity, is currently basking in hedge fund adoration. Despite enduring a downturn of 13% over the past year and a staggering 24% plunge in the last half-decade, this underdog has caught the eye of seasoned hedge fund veterans. Not merely a passive observer, this London-based firm has embarked on an ambitious restructuring odyssey, setting its course towards bolstering shareholder value. With plans for a significant share buyback and a generous dividend payout of $1.7 billion, Liberty Global braces for a strategic reshuffle by mulling over the spinoff of its Swiss telecom arm, Sunrise. Hedge fund luminaries anticipate that these transformative initiatives will steer Liberty Global’s stock towards brighter horizons.
Alibaba (BABA): A Phoenix Amid the Dragons
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As the winds of change sweep across Chinese markets, hedge funds have mounted a fervent charge towards Chinese equities, reminiscent of a stampede unseen since 2015. Amid this tumult, Alibaba (NYSE:BABA), the Chinese e-commerce behemoth, emerges as a beacon of hope in a seemingly tempestuous sea. Despite its recent tribulations – a 20% decline in the past year and a daunting 60% plummet over five years – Alibaba’s resilience prevails. Should Chinese stocks regain their luster in tandem with Beijing’s potent stimulus measures, Alibaba stands poised to reclaim its former glory. Recent market movements in China, marked by a nine-day uptick streak, echo promising signs of resurgence, akin to Japan’s historic market highs. Hedge funds, acknowledging these favorable omens, thrust their weight behind Alibaba, imparting a sense of optimism amidst the stormy seas.
On the date of publication, Joel Baglole held a long position in MSFT. The views expressed are solely those of the writer and are subject to the guidelines of InvestorPlace.com Publishing Guidelines.
Joel Baglole, a seasoned business journalist with two decades of experience, has graced the pages of esteemed publications such as The Wall Street Journal, The Washington Post, and Toronto Star. His financial insights have also found a home on platforms like The Motley Fool and Investopedia.
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