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.
Recursion Pharmaceuticals (RXRX)
Recursion Pharmaceuticals (RXRX), a pioneering drug-discovery company at the cusp of the convergence between artificial intelligence (AI) and biology, traded down nearly 17% on Monday. The broader biotech selloff combined with Recursion’s short history as a public company seem to have contributed to the drawdown. In our view, Recursion’s drug-discovery and optimization engine, Recursion OS, is second to none in the therapeutics industry. Recursion’s platform is a low-latency feedback loop that combines wet-lab cell experiments, novel computer vision techniques (phenomics), and powerful AI systems to inference the chemical space for therapeutic candidates.
The Trade Desk (TTD) traded down 26% on Monday despite reporting earnings those surpassed expectations. Because of Apple’s new opt-in advertising rules, management did not provide second quarter guidance on either GAAP Net Income or the reconciliation of adjusted EBITDA guidance to net income. The company also announced a ten-for-one stock split, effective June 9th. The Trade Desk is an ad-tech company that facilitates audience targeting across different media formats and should continue to benefit from the shift in advertising from linear TV to streaming.
注: The Trade Desk (TTD)周一交易量下降了26%，尽管报告的收益超过了预期。由于苹果新的选择广告规则，管理层没有提供第二季度的GAAP净收入指导，也没有提供调整后的EBITDA指导与净收入的调节。该公司还宣布从6月9日开始进行十进一的股票分割。The Trade Desk是一家广告技术公司，促进了不同媒体格式的受众定位，应该继续受益于广告从线性电视到流媒体的转变。
Twist Bioscience (TWST)
Twist Bioscience (TWST), a leader in synthesizing DNA for a large and growing array of end markets, closed down 17% on Monday despite reporting top and bottom lines that surpassed expectations and then raising annual revenue guidance. In other words, it succumbed to the broad-based sell-off in biotech and genomics stocks. We are confident that synthetic DNA is not commoditizing, and that Twist’s synthesis platform is positioned uniquely to address the broadening needs of the synthetic biology, next generation sequencing (NGS), and longer term data storage markets.
Zymergen (ZY), a highly vertically integrated synthetic biology company focused on materials science innovation, traded down nearly 16% on Monday. Newly public, Zymergen’s shares could remain volatile as investors grapple with valuation models. The broader biotech selloff as well as the public debut of competitor Ginkgo Bioworks also seemed to contribute to Zymergen’s price action on Monday. In our view, Zymergen’s approach to synthetic biology, including molecular discovery, microbial design, and manufacturing scale, is unique. We will be monitoring Zymergen’s first electronic film product, Hyaline, as evidence of its platform’s strength.
3D Systems (DDD) appreciated more than 35% on Tuesday after surpassing revenue and earnings expectations, triggering an upgrade from Craig-Hallum.
注: 3D Systems（DDD）周二升值超过35%，此前该公司的收入和盈利超出预期，引发了Craig-Hallum的评级。
Roblox (RBLX) traded up 21% on Tuesday after missing earnings expectations but reporting promising metrics: a 161% increase year over year in bookings, a 79% increase in daily active users (DAUs), and a 98% increase in total hours engaged. Roblox’s first quarterly earnings report indicates strong demand for its entertainment platform and continued consumer interest in digital worlds. Roblox is an online entertainment platform that allows users to engage with a variety of virtual worlds and games. Roblox hosts independent developers who create and offer their games on its platform.
Butterfly Network (BFLY), an innovative medical device company focused on low-cost, point-of-care ultrasound (POCUS) solutions, closed down nearly 16% on Thursday after reporting strong revenue and earnings for the first quarter. Given its short history as a public company, we believe investors are treading lightly as it builds a track record of execution. Like other life science tools companies, Butterfly was hurt by the broader biotech selloff. We are confident that its semiconductor and field-programmable gate array (FPGA)-based designs will allow Butterfly to deliver high-quality, flexible POCUS devices at radically low-price points.
908 Devices (MASS), a life science tools company aiming to decentralize chemical and biomolecular analysis by miniaturizing mass spectrometry, closed down 16% on Thursday following its first quarter earnings call. 908 Devices outperformed expectations with 39% revenue growth on a year-over-year basis. Importantly, the company added Bluetooth and aerosol analysis capabilities to its handheld mass-spec device, MX-908. In our view, these advancements will open new market adjacencies for 908’s core business. The broader tech and biotech selloff and several sell-side target price reductions have depressed 908’s shares despite its exemplary growth and execution.
On Friday, Skillz (SKLZ) traded up 15%, rebounding from several short reports and from the broad-based selloff in growth equities during the rotation into value during the past three months. We have stated our belief that claims against Skillz are grossly exaggerated or false and are confident in the company’s position in the gaming ecosystem. Skillz is a leading mobile games platform that enables competitive esports style play. Leveraging its patented match-making technology, Skillz hosts billions of casual esports tournaments worldwide.