Investing

Why 5 Stocks Hedge Funds Are Shorting the Most Could Be Huge Q2 Winners

ViacomCBS

The stock was crushed recently and is offering an outstanding entry point. ViacomCBS Inc. (NASDAQ: VIAC) is an American multinational media conglomerate based in New York City. It was formed via the re-merger of CBS and the second incarnation of Viacom on December 4, 2019, the two of which were created from the split of the original Viacom in 2005.

ViacomCBS’s portfolio of brands include the CBS network, TV production studio, international broadcast networks, MTV, Nickelodeon, Paramount Network, Comedy Central, BET, VH1, TV Land, Showtime, Simon & Schuster, Paramount Pictures and Pluto TV.

The stock was hammered due to the selling generated by the implosion of hedge fund Archegos Capital Management, which was massively leveraged and was forced to sell stock to cover margin calls. ViacomCBS was one of the stocks they were forced to sell. That, combined with a large secondary offering, put a big dent in the shares.

Investors receive a 2.19% dividend. An $80 price target accompanies Needham’s Buy rating. The posted consensus target is $57.48. The last ViacomCBS stock trade on Wednesday was at $43.89.

AMD

This top semiconductor stock has been on fire, and there are many reasons to buy shares at the current reasonable entry level. Advanced Micro Devices Inc. (NYSE: AMD) operates as a semiconductor company worldwide. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. They also include server and embedded processors, and semi-custom system-on-chip products, development services and technology for game consoles.

AMD provides x86 microprocessors for personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO and AMD Pro A-Series processors brands. It provides microprocessors for notebook and 2-in-1s under the AMD Ryzen, AMD A-Series, AMD Athlon, AMD Ryzen PRO, AMD Athlon PRO and AMD Pro A-Series processors brands, as well as microprocessors for servers under the AMD EPYC and AMD Opteron brands. Its chipsets are sold under the AMD trademark.

The company announced the Milan server CPU launch on March 15, and product and partnership announcements could help re-energize stock. The EPYC-1 launched in June 2017, and since then unit share is up to 8% from 0.4% and the average selling price to more than $700 from $200 to $300 prior. Some on Wall Street that Milan can drive even higher. The dependable roadmap from past success enables share gains, and AMD is already looking towards Zen 4 and Zen 5, which is in concept design.

BofA Securities has set a $115 price target to go with its Buy rating, while the consensus target is $103.21. AMD stock closed Wednesday at $82.80 a share.


These are five top stocks that hedge funds are short the most. If you are scratching your head and wondering why, you should be. They all make money, they all are leaders in their respective silos and all have been around for quite a while, with the possible exception of Tesla. Good earnings and guidance could possibly shoot them all higher and, with first-quarter results around the corner, that is a distinct possibility.