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Analyst Upgrades: Alphabet Inc, Netflix, Inc., and Facebook Inc

Analysts upwardly revised their ratings on Alphabet Inc (NASDAQ:GOOGL), Netflix, Inc. (NASDAQ:NFLX), and Facebook Inc (NASDAQ:FB)

Nov 15, 2016 at 9:24 AM
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Nomura-owned Instinet is weighing in on Google parent Alphabet Inc (NASDAQ:GOOGL), online streaming stock Netflix, Inc. (NASDAQ:NFLX), and social media expert Facebook Inc (NASDAQ:FB) this morning, initiating coverage on each with a "buy" rating. Here's a quick roundup of other news surrounding GOOGL, NFLX, and FB.

  • Aside from the fresh "buy" rating at Instinet, GOOGL last night received an endorsement on the hedge fund front, with Soros Fund Management taking a 12,700-share stake in the company. On the other hand, Appaloosa LP reduced its stake to 472,000 shares from 630,000. Meanwhile, Alphabet Inc and Facebook are both working on policy changes to crack down on fake news sites. As for GOOGL stock, the shares have fallen in sync with the broader tech sector following Donald Trump's election win. At $753.22, not only is the equity in the red on a year-to-date basis, but it just closed below its 200-day moving average for the first time since July -- though the shares are 1.4% higher ahead of the open. Whether bullish or bearish, now might be a good time to buy short-term GOOGL options, since its Schaeffer's Volatility Index (SVI) of 25% sits just 1 percentage point from an annual low. 
  • Soros Fund Management also took a stake in NFLX, buying 137,166 shares, but Omega Advisors dissolved its stake. The stock is pointed 1% higher in electronic trading, after yesterday finding support from its year-over-year breakeven level near $111, before closing at $113.38. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), options traders have been expressing faith in Netflix, Inc. The stock's 10-day call/put volume ratio across these exchanges is 1.44, which tops 75% of all other readings from the past year. 
  • FB has gained 1.6% in pre-market action, after investment firm Paulson & Co. raised its stake in the stock by 47%, while hedge fund Appaloosa LP disclosed a 1.5-million-share stake. Elsewhere, Facebook Inc just announced its messaging platform WhatsApp will now feature video calling. Despite its post-election slide, FB remains 10% higher in 2016, last seen at $115.08, and data suggests today's pending bounce shouldn't be surprising. Specifically, the stock sports a 14-day Relative Strength Index (RSI) of 27, meaning it's technically oversold. 
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