FAANG Stock Swings Higher on Disney Buzz

Gogo shares have shed 36% since last Thursday's close

Nov 20, 2018 at 1:49 PM
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The U.S. stock market is spiraling for a second straight day amid weakness in the tech and retail sectors. Drilling down on individual names, in-flight internet provider Gogo Inc (NASDAQ:GOGO) and U.K.-based medical device maker LivaNova PLC (NASDAQ:LIVN) are sinking, while FAANG stock Amazon.com, Inc. (NASDAQ:AMZN) has swung higher. Here's a quick look at what's moving shares of GOGO, LIVN, and AMZN.

Gogo Extends Sell-Off After Investment Group Dissolves Stake

Gogo stock is down 9.7% to trade at $4.30, after a Securities and Exchange Commission (SEC) filing revealed Senator Investment Group dissolved its stake in the tech firm. The equity has now shed 35.7% since its Nov. 15 close, and is trading in levels not seen since mid-September.

While all seven covering analysts maintain a "hold" or " strong sell" rating on GOGO stock, which has surrendered nearly 63% year-to-date, the average 12-month price target of $6.83 is a 61.2% premium to current trading levels. This puts Gogo at risk of price-target cuts, which could translate into more headwinds for the shares.

LivaNova Stock Set for Worst Day to Date

The U.S. Centers for Medicare and Medicaid Services (CMS) issued policy memo that could impact coverage of LivaNova's nerve-stimulation therapy for treatment-resistant depression, with a decision on the potential change expected in 90 days. In reaction, LIVN stock is down 15.1% at $101.97 -- pacing toward its worst day on record.

Nevertheless, the shares remain 27.9% higher on the year, and analysts are overwhelmingly upbeat. While 80% of covering brokerages maintain a "buy" or better rating, the average 12-month price target of $138.33 represents expected upside of 35.7% to LIVN's current price.

Amazon Submits First-Round Bid for DIS Assets

Amazon plunged 6.1% out of the gate, but has since pared those losses to trade at $1,503.92 after CNBC reported the e-tailer has thrown its hat into the bidding war for 22 regional sports TV networks currently owned by Walt Disney (DIS). It's been a rough stretch for FAANG stocks, and AMZN has been no exception. Heading into today's trading, the security closed lower in seven of the past eight sessions, and is pacing toward its third straight monthly loss -- the longest such streak since late 2016.

And while shorts have been ramping up their bearish exposure to Amazon stock, analysts have yet to adjust their bullish outlooks. Twenty-nine of the 31 brokerages covering AMZN maintain a "buy" or "strong buy" rating, while the consensus 12-month price target sits all the way up at $2,136.26 -- in record-high territory.


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