We share weekly commentaries with investors on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week. We hope you find this commentary useful.
ZhongAn Online (6060 HK)
ZhongAn Online (6060HK) appreciated more than 32% on Tuesday in what we believe is a delayed response to results that suggest its heavy investment spending is paying off. ZhongAn is an online-only insurance company based in China that has expanded into new markets and products during the past few years. As a result of increased business activity and lower than expect underwriting losses, ZhongAn expects to report that it turned the corner from losses to a net profit for the full year in 2020.
Butterfly Network (BFLY), a medical technology company focused on democratizing access to point-of-care ultrasound (POCUS) devices, traded up nearly 17% on Wednesday after consummating its merger with Longview Acquisition Corporation (LGVW), a special purpose acquisition company (SPAC). In our view, investors are building positions in Butterfly as they learn more about its competitive advantages, particularly its application of federated learning and avoidance of piezoelectric crystal technology.
Fastly (FSLY), an edge computing platform-as-a-service company, traded down 15% on Thursday despite reporting fourth quarter revenue and 2021 revenue guidance in line with expectations. The results were underwhelming on a sequential basis compared to those of its competitor, Cloudflare (NET), as well as on an organic basis excluding the contribution from Signal Sciences.
Organovo (ONVO), a biotechnology company focused on 3D-bioprinting, traded down 15% on Thursday in a broad market selloff. We believe shares will remain volatile until Organovo reveals more about its path forward.
Stratasys (SSYS) closed down 15% during a broad-based market sell-off on Thursday after the company reported that it acquired RPS, a UK based stereolithography (SLA) 3D printing company, and plans to phase out its V650 Flex, an SLA 3D printer introduced in 2019.
ExOne (XONE) closed up more than 18% on Friday, perhaps in a delayed response to an announcment that it is developing a 3D printing factory housed in a shipping container for the Department of Defense (DoD).