REA is another example of a stock that has performed exceptionally well, but has seen aggressive profit taking when making new highs. This unfolded last week as it traded to ~$167, before the stock quickly reversed ~7%, illustrating why MM is unlikely to chase stocks into strength through the 4Q of 2023. Overnight, there was news out that Starboard Value LP, which has built a large position in Newscorp (NWS), was pushing the company to sell its 61% stake in REA Group (REA), unlocking ~$13bn for shareholders, i.e. this activist is trying to get paid, and it appears to believe that REA has limited upside from current levels.
MM is neutral REA around $160
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