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.
Shares of Splunk (SPLK) traded down 18% on Monday following the announcement that Doug Merritt, CEO, would step down effective immediately. While the unexpected leadership change has caused uncertainty, we believe that the new leaders that it has attracted from companies like Amazon and Salesforce will accelerate Splunk’s transition to a cloud-native model. Splunk offers a comprehensive suite of analytics, monitoring, and security software.
Shares of Butterly (BFLY), an innovative medical device company focused on developing low-cost, point-of-care ultrasound (POCUS) solutions, bounced back 15% on Tuesday after depreciating roughly the same percentage on Monday on lower than expected revenue guidance. Butterfly’s sales model is shifting from Direct-to-Consumer (DTC) to enterprise B2B, the latter causing a longer sales cycle. We have confidence in this new post-SPAC management team’s ability to execute during this transition.
Shares of Peloton (PTON) rose more than 15% on Tuesday after the company raised $1 billion in equity for general corporate purposes as management diversifies its portfolio of connected fitness products and services. Peloton provides connected fitness products such as bikes and treadmills, offering subscriptions to live and on-demand fitness classes.
Shares of Stone (STNE) traded down 34% on Wednesday after the company announced third-quarter results that missed analysts’ earnings estimates. We believe investors were concerned about increased funding costs, the cost of investment initiatives, increased competition, and the integration software provider Linx. Stone provides Brazilian micro-, small- and medium-sized merchants with payments and software solutions.