Twitter Cools Off, Loeb’s Stake in Sony, and 3 More Hot Stocks

Twitter Inc. (NYSE:TWTR): Shares are slumping after last week’s blowout initial public offering, as analysts issue Neutral and bearish notes on the stock. On Monday, Sterne Agee initiateD the microblogger at Neutral; despite a nearly 4 percent dip, shares are still 58 percent up on the $26 offering price.


Sony Corp. (NYSE:SNE): As of the end of September, Daniel Loeb and his Third Point Capital firm held a 1.64 percent direct stake in the Japanese electronics giant, according to regulatory filings. Third Point has said that it controls 7 percent directly or under different names, making it tough to tell if its total stake in Sony has changed.


Novartis AG (NYSE:NVS): Novartis is pondering the sale of its non-strategic animal health and over-the-counter businesses if it cannot turn them into businesses of global scale, CEO Joe Jimenez said. Novartis is focusing primarily on its pharma, eye care, and generics units, though it is reviewing its options for its three subscale businesses: vaccines and diagnostics, over-the-counter, and animal health.


Eli Lilly & Co. (NYSE): Shares are down more than 2 percent as Goldman Sachs cuts Eli Lilly’s rating from Neutral to Sell, as the firm believes that patent expirations and a soft pipeline lead to an uncertain outlook.  ”As [Eli Lilly’s] primary care business declines due to patent expirations, the new product portfolio is increasingly important [but] we see a lack of differentiation for key pipeline products,” analyst Jami Rubin says.


AstraZeneca Group (NYSE:AZN): AstraZeneca will be shelling out around $190 million on a new facility in order to “support the continued production” of Zoladex, the company’s cancer drug that sells in excess of $1 billion. The new plant will be located in Macclesfield, U.K., the same location where the drug has been made for more than a quarter-century.


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