Breaking Down Tesla, Cloud Computing, Biotech, and More
Happy Monday! Markets experienced fierce volatility today; the S&P 500 and Dow zigzagged until closing in the red today. The NASDAQ, on the other hand, continued to buck the trend seen in the other two major indices to carry out gains for the day. That said, let’s jump in:
🚗 After completing its stock split, $TSLA jumped to a relative 52-week high at its new post-split price. At the open today, a rush of new investors jumped on the $TSLA train and sent it jumping 12.4% in trading. The split comes in a time where investor interest in tech is outpacing earnings and valuations which, according to analysts, is increasingly a cause for concern.
🎮 After a mediocre five years, at least one analyst is ready to take a bet on Gamestop. Shares of the video game retail store chain are up 24.3% after news a venture firm bought 9% of the company. The venture firm, owned by co-founder and former CEO of Chewy Ryan Cohen, has turned some heads with this investment. $GME is competing in a market which is increasingly digitally dominated by purely online games and stores such as Steam, Origin, Epic Games store, and the likes. While we’re not confident this investment will pan out anything positive, it might still be worth the look.
☁️ With everyone at home, cloud computing and physical storage companies have seen an increased volume of investor interest. Rackspace Technology has been riding the wave and scaling throughout this crisis. $RXT has jumped steeply since IPOing earlier this month, with many Wall Street analysts beginning coverage of the stock. Even $AMZN has eyed an investment in the ‘multicloud’ company. However, much of today’s 10.5% gains were lost in after hours as the stock plummeted in after hours before its earnings call.
🧪 After last week’s Trump tweets about the pricing of drugs, biotech briefly bit the dust. However, today biotechs represent nearly half of our Rippers list – some sort of evidence that investors aren’t so put off by the president’s comments. A lesser-known biotech company called I-Mab topped our Rippers list today after releasing earnings and positive results from its early-stage cancer drug. When biotechs make announcements — whether of earnings or results — these ‘catalyst’ events become grounds for large volatility in trading. $IMAB traded up 26.3% today.
🧬 Joining $IMAB on the Rippers list today is gene therapy company Generation Bio. $GBIO is trialing a large variety of extremely early-stage gene therapies for liver and retina deficiencies. Its inclusion in today’s list is more a result of volatility and sudden investor interest than any underlying event.
🔥 Four stocks featured on our Rippers list last week made today’s list: Materalise, a 3D printing logistics company; BRP Group, an insurance broker; Trillium Therapeutics, an early-stage biotech company making cancer treatments; and Rhythm Pharmaceuticals, a biotech making drugs for genetic obesity disorders. $MTLS jumped 14.5% in trading, $BRP jumped 12% in trading, $TRIL jumped 10.5% in trading, and $RYTM jumped 9.7% in trading. Guess investors haven’t had enough of these stocks!
See you all back here Wednesday 📈📈📈