New Meta Platforms (META), Amazon (AMZN) ‘Strong Buy’ Ratings Top Wall Street’s Wednesday Upgrades and Downgrades

By Lee Jackson Published Dec 20, 8:40AM EST

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New Meta Platforms (META), Amazon (AMZN) ‘Strong Buy’ Ratings Top Wall Street’s Wednesday Upgrades and Downgrades — © AvigatorPhotographer / iStock via Getty Images

Equity futures traded somewhat lower this morning after the December Santa Claus rally rolled on its merry way Tuesday. All the major indices once again finished the day higher, with the venerable Dow Jones industrials leading the course, closing up for the ninth straight day at 0,67% at 37,556.93. The big winner of the day was the small-cap Russell 2000, which stormed almost 2% higher to close at 2,020.95. After underperforming the other significant benchmarks in 2023, many feel small stocks could be ready to explode.

Bonds

U.S. Treasury bonds.

Treasury yields were flat to lower as buyers returned to the government bonds after Monday saw some selling after a big December move higher. The ten-year note closed trading at 3.93%, while the 2-year short paper closed Tuesday at 4.44%. While the inversion has narrowed to 51 basis points after being well over 100 (or 1%) earlier this year, history still reminds bond traders that the difference often indicates a recession is possible.

Commodity prices

Crude oil tanker.

Brent and West Texas Intermediate crude rose again as more companies diverted shipping from the Red Sea. Houthi militants from Yemen have been carrying out the attacks, and so far, shippers have already diverted more than $30 billion in cargo from the region after 15 strikes have occurred.

Despite promises of protection by the U.S. Navy, 57 container vessels are going the long way around Africa to avoid being attacked. Brent closed trading at $79.53, up over 2%, while WTI finished Tuesday at $73.58, up 1.11%. Natural gas was the big winner, closing up 2.16% at $2.58 as some freezing weather has covered some big swaths of the U.S. this week.

Gold also continued to march higher as the February contract for the bullion closed up 0.64% at $2053.20. Ongoing dollar weakness and rising geopolitical concerns have kept a strong bid behind the commodity, which hit an all-time high in the first week of December. Bitcoin closed modestly lower, down 0.67% to $42,362.30.

Here are the top Wall Street upgrades and downgrades for Wednesday, December 20th, 2023.

Upgrades

Analysts lift their outlook on these stocks.

Paramount Global (NASDAQ: PARA | PARA Price Prediction) raised from Underweight to Equal Weight at Wells Fargo; $15 price target raised to $18.

KeyCorp (NYSE: KEY) raised from Equal-Weight to Overweight at Stephens; no price target given.

Downgrades

Analysts pull back on these stocks.

Costco Wholesale Corp. (NASDAQ: COST) cut from Buy to Neutral at Northcoast; price target unchanged at $620.

DocuSign Inc. (NASDAQ: DOCU) cut from Equal Weight to Underweight at Wells Fargo; no price target given

Salesforce Inc. (NYSE: CRM) cut from Overweight to Equal Weight at Wells Fargo with a price target of $280.

Other

Google’s headquarters in Silicon Valley.

Alphabet Inc. (NASDAQ: GOOGL) resumed with an Outperform rating and a price target of $150 at Raymond James.

Amazon.com Inc. (NASDAQ: AMZN) resumed with a Strong Buy rating and a price target of $185 at Raymond James.

McDonald’s Corp. (NYSE: MCD) initiated at HSBC Securities with a Buy rating and a price target of $317.

Meta Platforms Inc. (NASDAQ: META) resumed with a Strong Buy rating at Raymond James, with a price target of $425.

Starbucks Corp. (NASDAQ: SBUX) initiated at HSBC Securities with a Hold rating and a $107 price target. (Here are five reasons to avoid Starbucks today.)

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.