Hedge funds and C-suites: Dan Loeb picks up AMD stake | Pro Recap

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Hedge funds and C-suites: Dan Loeb picks up AMD stake | Pro Recap
Credit: © Reuters

By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of the biggest news out of hedge funds and company top brass from the past week you may have missed on InvestingPro. Start your free 7-day trial to get this news first.

Activist investor Dan Loeb acquires a passive stake in AMD

Billionaire investor Daniel Loeb disclosed to investors in his hedge fund Third Point that the firm has acquired a passive stake in Advanced Micro Devices (NASDAQ: AMD ), according to a report from Reuters on Thursday. Although Third Point occasionally employs an activist strategy to push for changes at companies, there are currently no plans to do so at AMD.

Both a spokesperson for Loeb and AMD declined to comment on the matter.

AMD shares rose more than 2% on Thursday following the news and closed the week with more than a 4% gain.

Elliott releases a statement on Salesforce

Elliott Investment Management issued a statement on Thursday regarding Salesforce (NYSE: CRM ), stating that Salesforce's announcements during its earnings call last week are a positive step in restoring investor trust.

After the company reported better-than-expected Q4 results and guidance, CEO Marc Benioff argued that the company needs to accelerate its two-year plans to enhance income.

“The acceleration of margin targets, commitment to responsible capital-return priorities, creation of a business transformation committee and disbanding of the M&A committee are necessary steps forward. These steps are consistent with our recommendations, and we believe they will help restore value at Salesforce,” Elliott said in the statement.

CRM shares jumped more than 11% on Thursday following the earnings report.

Greenlight Capital's David Einhorn is bearish on stocks and sees rates continuing higher

Greenlight Capital's David Einhorn expressed his negative view of the stock market in an interview with CNBC on Wednesday. Einhorn believes that rates are headed higher and that the current policy will be "increasingly difficult" for financial assets. He stated that "we should be bearish on stocks and bullish on inflation."

Einhorn said he is buying back Tenet Healthcare (NYSE: THC ), which he sees as recession resistant. In addition, he spoke on Teck Resources (NYSE: TECK ), stating it has a strong cash flow and is trading at a low multiple.

Apple cloud chief to step down

Turning to significant management changes, Apple (NASDAQ: AAPL ) top executive Michael Abbott, who heads the iCloud service, is leaving the company in April, according to a Bloomberg News report on Friday, citing people familiar with the matter.

Union Pacific announces a new CEO search, shares surge

Union Pacific Corporation (NYSE: UNP ) shares jumped 10% on Feb 27 following the company’s update regarding the new CEO search to replace Lance Fritz.

This was followed by a letter released by Soroban Capital Partners, a top 10 shareholder of the railroad operator since 2016, expressing its displeasure with years of operating underperformance and stating that current management is not capable of driving strong performance.

Following the announcement, RBC Capital upgraded the stock to Sector Perform from Underperform and raised its price target to $210 from $191.

Zoom's President Greg Tomb to leave the company

Zoom (NASDAQ: ZM ) said on Friday that it has terminated the employment of President Greg Tomb effective March 3. Tomb is a former Google (NASDAQ: GOOGL ) executive who had only started at Zoom in June.

Some analysts on Wall Street reacted negatively to the news, with Citi stating in a note that it's "hard to read this in a positive light." Meanwhile, Stifel said the move was "surprising."

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