Hedge funds decrease holdings in top stocks before earnings, market reaction is negative.

From Yahoo Finance: 2025-04-21 13:02:00

Global hedge funds reduced exposure to the “Magnificent Seven” megacap stocks to a two-year low ahead of earnings, selling over 60% of the total dollar amount held. Tesla leads the earnings season on April 22, followed by Alphabet. All seven stocks are underperforming the S&P 500 in 2025, with Alphabet down 22% and Tesla down 44%. Investors are cutting back on these bets, with only 24% seeing them as crowded trades now. Hedge funds also sold shares in various sectors last week, according to Morgan Stanley.



Read more at Yahoo Finance: Hedge funds cut ‘Mag Seven’ to two-year low ahead of earnings