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.
Nextdoor Holdings (KIND)
Shares of Nextdoor Holdings (KIND) traded up almost 17% on Monday after completing the merger with its SPAC. Nextdoor provides a hyperlocal social networking platform that connects users and businesses within their neighborhoods.
Invitae (NVTA), a leading provider and manager of clinical genetic data, closed down nearly 22% on Tuesday following its third-quarter earnings call. Despite growing revenue 66% year-over-year, Invitae missed revenue expectations and lowered its annual revenue guidance. We believe investors also were disappointed by a decrease in gross margin, which the company noted was due to a quarterly product mix that heavily emphasized lower-margin reproductive testing. While we sympathize with investor frustration, we commend Invitae's decision to release a 14-metric dashboard each quarter that should help analysts better understand Invitae's increasingly complex business. We continue to believe Invitae's broad testing menu, powerful digital capabilities, and technology stack make the company a leader in genetic information management. Finally, we estimate that Invitae's oncology products and completion of new production facilities should increase operating leverage and gross margin in 2022.
Shares of Roblox (RBLX) traded up 42% on Tuesday after reporting strong third quarter earnings, with revenue up 102% year-over-year (YoY) and average daily active users up 31% YoY to 47.3 million. We maintain high conviction in Roblox's ability to attract developers and end users. Despite post-pandemic reopening dynamics, we believe user-oriented gaming platforms will continue to benefit from sticky users. Roblox is an online entertainment platform that allows users to engage with a variety of virtual worlds and games that independent developers create and offer through the platform itself.
Shares of The Trade Desk (TTD) traded up 29% on Tuesday after reporting strong third quarter earnings. The Trade Desk reported growth outpacing programmatic advertising growth during its third quarter, with total revenue up 39% year-over-year (YoY). With the continued expansion of its Unified ID 2.0 ecosystem, we believe The Trade Desk has a leading edge in attracting agencies and publishers looking to diversify away from Apple's IDFA changes and third-party cookies. The Trade Desk is an ad-tech company that facilitates audience targeting across different media formats.
注: The Trade Desk (TTD)的股价周二上涨了29%，此前该公司公布了强劲的第三季度收益。The Trade Desk在第三季度的增长超过了程序化广告的增长，总收入同比增长39%。随着其Unified ID 2.0生态系统的持续扩张，我们相信The Trade Desk在吸引那些希望从苹果IDFA变化和第三方cookie中多样化的代理机构和出版商方面具有领先优势。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。
Recursion (RXRX), a clinical-stage, AI-enabled drug discovery company, traded down nearly 18% on Wednesday after issuing its quarterly press release. Given the company's early stage, we believe investors may have sold in anticipation of increased investment spending by Recursion ahead of several programs that will enter the clinic in 2022. We believe Recursion's approach to small molecule drug discovery is unique and becoming increasingly validated as its programs enter clinical studies.
Shares of Toast (TOST) traded down 18% on Wednesday after posting third-quarter results that missed analysts' bottom-line estimates. Toast beat top-line revenue estimates and grew its total payment volume by 123% year-over-year. Toast offers innovative point-of-sale software and payments to restaurants in the US.
Shares of Opendoor (OPEN) traded up 15% on Thursday after the company reported third-quarter earnings that, in contrast to those from Zillow (Z), benefited from solid iBuying execution, appearing to validate the business model. Opendoor is an iBuying real estate platform that takes the friction out of the home-buying and selling process.
On Thursday, Compugen (CGEN), an Israeli pharmaceutical company focused primarily on innovative treatments for a range of cancer indications, traded up 14% on news that Bristol Myers Squibb expanded their collaboration and invested an additional $20M in Compugen’s stock. At the Society for Immunotherapy of Cancer (SITC), Compugen also presented data on its monotherapy (COM902), an antibody targeting a protein called TIGIT, that showed anti-tumor activity in 9 of 18 patients (50%) but no better response than “stable disease”. Compugen also presented data from its Phase 1 dose escalation study from a triple therapy containing Opdivo®, BMS-986207, and "COM701", an inhibitor of PVRIG (poliovirus receptor related immunoglobulin). Trial participants tolerated this triple therapy well but showed limited to no response. Expecting complete or partial responses from this data release, many investors sold CGEN, pushing the stock down approximately 18% today.
Shares of Farfetch (FTCH) traded up 17% today after the company confirmed it is in discussions with luxury conglomerate Richemont to potentially expand their Luxury New Retail partnership. Potential directions include Farfetch powering the ecommerce backend of Richemont's brands and YOOX NET-A-PORTER, and the participation of Richemont's brands in Farfetch's marketplace. We believe Richemont's openness to collaborate further is a testament to Farfetch's technological edge in e-concession and logistics optimization. Farfetch provides an online luxury shopping platform, and we believe it is a leader in digitizing the luxury experience around the world.
Shares of Vuzix (VUZI) traded up 15% today in response to continued bullish sentiment from investors. Vuzix reported third quarter earnings on Monday and, although it missed Wall Street expectations for revenue, management reiterated confidence in an acceleration in sequential revenue growth for the fourth quarter. Vuzix offers AR display and computing glasses for consumer and enterprise markets globally.