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.
Berkeley Lights (BLI)
Shares of Berkeley Lights traded down 15% on Monday, continuing along the same horizontal trading range of the past two months. Berkeley Lights is an innovative life-science tools company focused on improving the way the world studies and manufactures single cells. The company's Beacon platform can isolate and clone the most desirable single cells and could be a pivotal resource in cell therapies and cell manufacturing pipelines alike.
Shares of Unity Software traded down more than 17% on Wednesday after the company announced a $4.4 billion all-stock merger agreement with mobile app advertising and monetization platform, ironSource. In our view, the merger is a net positive as it integrates a more mature, scaled mediation platform that should improve the developer experience with UnityAds. Given ironSource’s record of positive net income since 2019, we also believe the acquisition will accelerate Unity's path to profitability. Unity Software provides solutions for the creation of real-time 2D and 3D content across the entire creation-to-monetization pipeline.
Shares of Velo3D rose 20% on Wednesday after news that Pratt & Whitney is evaluating an end-to-end 3D printing solution for manufacturing its jet engine components. Velo3D is a 3D printing company specializing in support-free powder bed fusion. SpaceX is its largest customer and a strategic investor.
Shares of 10X Genomics fell 17% on Friday after the company on Thursday announced the commercial availability of its Fixed RNA Profiling and Nuclei Isolation Kits. The new products allow formalin-fixed samples in deep cold storage to be analyzed for cell-specific, spatio-temporal RNA expression, which could expand the company’s addressable market significantly. Wall Street appears to be focused on the company’s Q2 revenue expectations––$114.5 million, down from $115.8 million a year earlier. 10X Genomics is the leading provider of single-cell sequencing hardware, consumables, and software, recently making a dedicated push to expand beyond single-cell sequencing and into digital spatial profiling and imaging with its Visium and in situ imaging platforms.
Shares of Codexis traded down 44% Friday after the company announced lower than expected second revenue of approximately $38 million and revised its expected 2022 full-year guidance from $152-$158 million to $135-$141 million. Subdued revenue guidance overshadowed the company’s new agreement to supply Pfizer (PFE) with the enzyme used in the drugmaker's COVID antiviral drug, Paxlovid. Codexis (CDXS) is a leading protein engineering company that works with clients to advance protein optimization and production, enabling breakthrough developments in pharmaceuticals, biotherapeutics, and agriculture.