Sell Alert: 5 Stocks Analysts Downgraded on Wednesday Farooq Fri, November 13, 2026 at 4:09 PM EST 8 min read ^GSPC -0.40% ^IXIC -0.91% CL=F +0.28% ^DJI +0.10% HALO -0.68% Trade HALO on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Wall Street got a sharp reminder this month of how fast sentiment can turn. Last Thursday the S&P 500 lost 4.4%, its worst day since April 2025, after midterm election results raised fears that regulation could hurt the AI trade. The Nasdaq Composite fell into correction territory, roughly 11% below the record it set in early October.
A rally on lower oil prices offered some relief at the start of this week. Then inflation data reopened the wound. Consumer prices rose 0.4% in October, the third straight monthly gain of at least that size and a touch above the 0.3% economists had expected. The stock market was still nervous from the prior week's rout, and it showed. The S&P 500 fell 0.38% to 7,520.93, the Dow lost 0.30% and the Nasdaq Composite slid 0.74% on the news.
Federal Reserve Governor Christopher Waller said the central bank should raise interest rates in December and consider a half-point increase if inflation worsens. Dallas Fed President Lorie Logan went further, saying at least two more quarter-point hikes are needed to bring prices under control. Three straight monthly gains of 0.4% or more is the kind of streak that keeps rate-hike talk alive.
Traders have taken the message seriously. They now price roughly an 84% chance of a quarter-point December hike, after a week in which both the stock and bond markets swung hard.
Investors tracking how far some AI stocks have fallen can find more names in our ranking of oversold AI stocks that analysts see rebounding by more than half.
Technology shares have taken the brunt of it. Selling in semiconductor stocks reached its most extreme level since 2019 earlier this week, by Yahoo Finance's measure, as worries about regulation of the AI trade added to the pressure.
Wednesday brought a rebound. The S&P 500 climbed 1.31% to 7,619.38, the Nasdaq Composite gained 1.60%, and the Dow rose 0.49%. The Nasdaq Composite had slipped into correction territory only days earlier. One day of gains does not erase the damage from the prior week, and the inflation and rate questions behind the selloff are still open. The Dow finished the day at 52,486.49.
Investors comparing cheaper alternatives can start with our roundup of affordable stocks that Wall Street analysts favor.
For now, the Federal Reserve's December meeting is the date traders are watching, with a hike priced as the likely outcome.
We shared the expanded list of Sell Alert: 10 Stocks Analysts Downgraded on Wednesday here. You can find the top 5 stocks below.
To compile this list, we reviewed analyst rating downgrades announced on Wednesday, November 11, 2026, from established Wall Street research firms. We have ranked these stocks in ascending order of their average upside potential, based on analysts' average price target, as of November 11. We also list each stock's number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.
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Average Upside Potential: 17%
Number of Hedge Fund Holders: 38
Halozyme reported a strong quarter, raised its full-year guidance, and then watched Morgan Stanley downgrade it. On November 11 analyst Sean Laaman moved the stock to Equal-Weight from Overweight while lifting the price target to $109 from $105. Laaman says the royalty base is diversifying and that Halozyme's European patent position strengthened materially in October. After the pullback, he adds, the shares trade roughly in line with Morgan Stanley's base-case value.
The sticking point is timing. The bank's discounted cash flow value reflects today's royalty portfolio, which peaks in 2029 when scheduled royalty-rate step-downs take effect. More value depends on a technology called Hypercon, a new antibody-drug conjugate opportunity and the next wave of launches using Halozyme's ENHANZE delivery technology. The bank says it will count those more fully as they mature.
Halozyme collects royalties on injectable versions of cancer and immune drugs. Johnson & Johnson's Darzalex, argenx's Vyvgart Hytrulo and Roche's Phesgo drive much of that income. Third-quarter revenue rose 39% to $493 million, and guidance moved higher. We also examined the large bet the company made on itself earlier this year.
Average Upside Potential: 29%
Number of Hedge Fund Holders: 10
Advertising revenue at Life360 came in at $25 million in the third quarter, short of both BofA Securities' estimate and the Street's. The firm downgraded the stock on November 11. The Nativo acquisition lifted advertising sharply from a year earlier, yet BofA wants faster monetization. BofA moved Life360 to Neutral from Buy and cut its price target to $45 from $60. It sees no material acceleration in the fourth quarter or in 2027 from the Pet Tracker, Uber or Nativo initiatives. It stays constructive on them over the longer term.
BofA lowered its 2027 revenue and EBITDA estimates, citing weaker advertising and higher sales and marketing spending. At about 19 times 2027 enterprise value to EBITDA, it considers the valuation fair, because strong subscription growth is offset by slower ad monetization.
Life360 sells subscription plans for its family location and safety app. Results were otherwise strong. The company raised its full-year revenue and EBITDA guidance. Management cautioned that US paying-circle growth could slow after recent price increases. Chief Executive Officer Lauren Antonoff said early results from the changes are encouraging.
Average Upside Potential: 50%
Number of Hedge Fund Holders: 62
Evercore ISI downgraded Akamai Technologies to In-Line from Outperform on November 11 and cut its price target to $90 from $150. The firm cites financing concerns and a complex investment cycle, and says the recent financing adds complexity and raises the need for execution. Evercore expects the shares to stay range-bound until the third or fourth quarter of 2027. By then, it says, operating margins should begin to stabilize, Anthropic revenue should be ramping and a path to positive free cash flow should be clearer. It remains constructive on the underlying opportunity.
Akamai topped consensus estimates for third-quarter revenue and adjusted earnings per share. Investors have focused instead on the spending needed to build its cloud business. The company is known for delivering and securing web traffic and now sells cloud computing. Management says it has signed more than $14 billion of multi-year commitments in that business this year. GAAP operating margin fell to 10% in the third quarter as spending rose.
The Anthropic agreement is the largest piece of that backlog, and our piece on the Anthropic deal covers how it came together.
Average Upside Potential: 79%
Number of Hedge Fund Holders: 55
Riot Platforms keeps signing leases at a pace few bitcoin miners can match, and Keefe, Bruyette & Woods still moved it to Market Perform from Outperform on November 11. The firm raised its price target to $23 from $20. Investors are focused on how Riot will pay for what it has promised. The company signed a long-term lease at its Corsicana, Texas, site with an unnamed frontier AI lab worth about $28 billion in total. It plans roughly $5.5 billion of non-recourse financing without issuing new equity.
Delivery at Corsicana begins late next year. The build still has to be funded and finished. Chief Executive Officer Jason Les leads the company. Riot is a bitcoin miner converting its Texas sites into data centers for AI. It also has an earlier lease with Anthropic at its Rockdale site. Mining revenue fell in the third quarter as the average bitcoin price dropped.
The company reported a small third-quarter profit against a consensus loss, so the debate centers on funding rather than demand. We looked at whether Riot can fund its data center build after the earlier lease was announced.
Average Upside Potential: 83%
Number of Hedge Fund Holders: 285
A report that Nvidia's board is weighing the removal of founding Chief Executive Officer Jensen Huang hit the stock hard this week, and Baird downgraded it on November 11. The firm moved Nvidia to Neutral from Outperform and cut its price target to $200 from $500. Baird cites reduced visibility into data center demand for 2027, mostly tied to supply limits, plus uncertainty over US government action on China sales and over the CEO's tenure. It expects the shares to stay in a trading range.
Baird says hyperscaler capital spending growth could slow to about 40% in 2027. It adds that demand for Nvidia's latest chips still outpaces supply, but some preemptive orders could be cut. On leadership, the firm wrote, "The odds of CEO transition are increasing into 2027." Morgan Stanley also removed Nvidia from its top-pick list this week.
Nvidia designs the chips that power AI data centers. Results are due next Tuesday after the close, with analysts expecting earnings of $2.47 a share. Our analysis of why Nvidia trades as if growth will stop covers the valuation side.
While we acknowledge the risk and potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Click to continue reading and see the expanded list of Sell Alert: 10 Stocks Analysts Downgraded on Wednesday.
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