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.
On Monday, shares of Stratasys (SSYS) appreciated 21% after Craig Hallum upgraded the stock from a hold to a buy and raised its price target. Stratasys is a leading 3D printer manufacturer that specializes in polyjet and FDM (fuse deposition modeling) technology.
On Thursday, shares of Protolabs (PRLB) closed down 20% after the company reported third quarter results well below analyst expectations. Revenues were much lower than expected in the face of supply chain bottlenecks while costs were much higher than expected amid disappointing results from Protolabs 2.0, its productivity enhancing technology overhaul. Protolabs is a rapid prototyping and on-demand manufacturing company that utilizes 3D printing technology.
Shares of Twilio (TWLO) traded down 17.6% on Thursday after the company guided to a weaker-than-expected forecast for the fourth quarter and announced the departure of COO George Hu. Third quarter revenues were much better than expected, up 65% on a year-over-year basis. Despite the weaker than expected guidance, our conviction in Twilio's ability to execute remains high given its active customer account growth of 20% year-over-year and continued net revenue retention rates above 130%. Twilio provides a cloud-based communications solution that allows developers to build digital experiences and campaigns over SMS, voice, video, email, and other communication channels.
Shares of LendingClub (LC) traded up 33% on Thursday after it posted net income growth of 190% sequentially during the third quarter and raised guidance well above analysts’ expectations. After closing the acquisition of Radius Bank earlier this year, LendingClub appears to be executing on its digital marketplace bank strategy.
Despite reporting earnings that surpassed analysts’ expectations, shares of CareDx (CDNA) depreciated 25% on Friday after the company disclosed in its 10-Q a civil investigative demand (CID) from the DOJ. The DOJ is investigating a false claims allegation from 2020, likely a countersuit to a false advertising claim that CareDx filed against Natera in 2019. CareDx has indicated it is cooperating fully with the DOJ and is confident that the investigation has nothing to do with the safety of its Allosure product. As a reminder, CareDx’s AlloSure tests measure donor-derived, cell-free DNA in a transplant recipient’s blood to detect whether or not an organ is being rejected by the body.