Shares of companies linked to a massive near $30 billion selling spree from investment fund Archegos Capital Management were on the rebound for a second day Tuesday, with ViacomCBS (VIACA) - Get Report and Discovery (DISCA) - Get Report posting moderate gains.
ViacomCBS was up more than 3% in early trading while Discovery was up nearly 4% after the two companies’ share prices plunged last week amid forced liquidation of positions linked to former Tiger Management trader Bill Hwang’s Archegos family office.
The American depositary receipts of well-known Chinese companies Baidu (BIDU) - Get Report and Tencent Music Entertainment (TME) - Get Report, which also were linked to the massive stock sale and also suffered losses last week, were little changed in premarket trading.
ViacomCBS and Discovery both posted double-digit percentage losses on Friday, brought down by giant block trades initiated by Goldman Sachs (GS) - Get Report and Morgan Stanley after Archegos reportedly failed to meet margin calls.
The forced-sale activity reportedly left Nomura Holdings (NMR) - Get Report and Credit Suisse Group (CS) - Get Report, the two Wall Street banks that provided Archegos with leverage to enhance its bets, with “significant” losses.
ViacomCBS lost more than half of its market capitalization last week, yet still remains nearly four times as valuable as it was a year ago.
Credit Suisse analyst Douglas Mitchelson on Tuesday upgraded ViacomCBS to neutral from underperform with a $46 price target, saying the stock now trades in line with his price target.
That followed Loop Capital analyst Alan Gould, who on Monday upgraded ViacomCBS to hold from sell with a $48 price target, also in light of the stock’s drop.
At last check, shares of ViacomCBS were up 3.06% at $48.48, while shares of Discovery were up 3.93% at $42.85.