Stock Commentary: XONE, PACB, SI, VUZI, SSYS, SDGR, & VCYT — ARK Invest email
It’s Friday, March 5, 2021
Hello James,
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.
In addition, whenever the market appears to be in a state of heightened volatility, we will post a video in which I provide a short review of the dynamics at play. You can find this week’s “In the Know with Cathie Wood” here.
ExOne (XONE)
24%
ExOne (XONE) closed up more than 24% on Monday. ExOne, a leader in binder jetting 3D printing technology, may have been responding to Stratasys’s fourth quarter report in which both revenues and earnings topped expectations.
Pacific Biosciences (PACB)
15%
Pacific Biosciences (PACB), a leading provider of highly accurate, long-read sequencing solutions, surged 15% on Monday as investors and speculators bid it up in advance of the Advances in Genome Biology and Technology (AGBT) conference this week. During AGBT, spokespeople from Pacific Biosciences and Children’s Mercy Hospital unveiled preliminary data suggesting that PacBio’s HiFi long read whole genome sequencing (WGS) significantly outperforms short-read sequencing the diagnosis of rare and Mendelian diseases. In a prospective setting, HiFi WGS generated a 67% diagnostic yield compared to 45% for short-read sequencing. Based on the organic adoption of long read sequencing, a sizable $900 million investment from SoftBank, and a transformational technology partnership with Invitae (NVTA), we believe PacBio is well positioned to dominate the WGS market in both clinical and population-research settings.
Silvergate Capital (SI)
17%
Silvergate Capital (SI) traded up 16% on Monday in line with rising cryptocurrency prices, then traded down 17% on Thursday during a broad-based equity market correction. In our view, the Silvergate Exchange Network (SEN), with its strong network effects, positions it as both a facilitator and prime beneficiary of increased crypto adoption.
Vuzix (VUZI)
22%
Vuzix (VUZI), a company developing wearable display technology, traded up 25% on Monday in response to a press release announcing that Microsoft Teams will support its M400 and M4000 Smart Glasses. On Thursday, the stock dropped 22% in a broad-based equity market correction.
Stratasys (SSYS)
17%
Stratasys (SSYS) closed down nearly 17% on Wednesday after pricing a 6.9 million share secondary at $29. Stratasys is a leader in polymer 3D printing.
Schrödinger (SDGR)
27%
Schrödinger (SDGR), a computational drug and material discovery company leveraging its highly-differentiated, physics-based platform, dropped 27% on Thursday after reporting quarterly and full-year results that disappointed investor expectations. In its 2021 guidance, Schrödinger highlighted that growth in its core software is slowing down as the size of its customer contracts increases, extending sales cycles and limiting near-term revenue visibility. Additionally, Schrödinger’s internal drug development pipeline progress has slowed down slightly, pushing IND-submissions into early 2022 instead of late 2021. Despite these concerns, we believe Schrödinger’s medicinal chemistry platform offers a powerful and unique view into chemical space, which should become more apparent as its internal and collaborative programs enter clinical stages.
Veracyte (VCYT)
15%
Veracyte (VCYT), a vertically integrated provider of molecular diagnostic and prognostic testing, closed down 15% on Thursday in a broad equity market selloff. We believe investors are concerned about the stability of tissue-based biopsies in the face of delays associated with the COVID-19 pandemic. In our view, Veracyte is extremely well positioned in the molecular diagnostics space, especially after its recent acquisition of Decipher Biosciences, which will move it into a market-leading position in 7 of the 10 most lethal cancers in the United States.
ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here.
Copyright © 2021 ARK Investment Management LLC, All rights reserved.
3 East 28th Street, Floor 7
New York, NY 10016 United States
You received this email because you are subscribed to ARK Advisor Services (Updates and Reports) from ARK Investment Management LLC.
This Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by ARK Investment Management LLC (“ARK”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation. All content is original and has been researched and produced by ARK unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of ARK. All statements made regarding companies, securities or other financial information contained in the content or articles relating to ARK are strictly beliefs and points of view held by ARK and are not endorsements of any company or security or recommendations to buy or sell any security. By visiting and/or otherwise using the ARK website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with ARK with respect to any linked site or its sponsor, unless expressly stated by ARK. Any such information, products or sites have not necessarily been reviewed by ARK and are provided or maintained by third parties over whom ARK exercises no control. ARK expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites.