Commentary from Ark Invest:
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.
Grayscale Bitcoin Investment Trust (GBTC)
Grayscale Bitcoin Investment Trust, a trust tracking bitcoin’s market price, dropped nearly 16% on Monday, three days after bitcoin hit an all-time high of $41,900. After nearly quadrupling in the last three months, we believe bitcoin’s sell-off this week was neither surprising nor alarming. It has recovered more than 15% since bottoming earlier this week.
Editas Medicine (EDIT)
Editas Medicine, a gene editing company harnessing the power of CRISPR Cas9 and Cas12a, traded down 15% on Monday after announcing that its Chief Scientific Officer (CSO), Charles Albright, is resigning to pursue another opportunity. Counterbalancing that announcement to some extent, Editas also disclosed that the FDA approved its Investigational New Drug (IND) application for EDIT-301, its ex vivo gene edited therapy for sickle cell disease. That said, the trial is on partial hold until Editas can improve the potency of its assay. For now, patients can be dosed to assess EDIT-301’s safety but not its efficacy.
LendingTree, appreciated more than 16% on Tuesday after disclosing better than expected preliminary fourth quarter 2020 earnings, thanks to a surge in the Home segment which includes mortgage-related revenue and a recovery in the Consumer segment. LendingTree operates a financial services platform that originates, processes, approves, and funds real estate, consumer, auto, and business loans and insurance.
Nano Dimension (NNDM)
Nano Dimension appreciated more than 21% on Wednesday after pricing a secondary offering. Nano Dimension is a leader in 3D printed high performance electronic devices. On Tuesday Nano Dimension was granted a new patent for rigid-flexible printed circuit board fabrication using inkjet printing.
Stratasys appreciated 16% on Thursday after 3D Systems announced that it would report an upside surprise in fourth quarter revenues and earnings, suggesting that the 3D printing industry is gaining traction in the recovery from the COVID-19 crisis. Moreover, during a presentation at the Needham Growth Conference, Stratasys announced that it expects to report sequential revenue growth for the fourth quarter. Management emphasized that COVID-19 has created supply chain vulnerabilities that 3D printing is well-suited to address.
Aerovironment appreciated 30% on Thursday after announcing an agreement to acquire Arcturus UAV, a leader in military unmanned aircraft systems. We believe the stock may also have been impacted by an ARK 485(a) filing with the SEC.
Catherine Wood, ARK Invest CEO, is a shareholder of 24/7 Wall St. LLC.