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The market indices ended today green as investors wait for July's Employment report.
The market indices ended the day in the green.
The S&P reached a new record high today, despite a lack of big news to move the market. Investors are awaiting the Fed’s Employment report for July on Friday, which will impact the upcoming decisions on monetary policy. Analysts are torn on whether it will dip lower or skyrocket, with estimates ranging between 350,00 to 1.2 million new jobs created. However, today's new jobless claims report hit a pandemic-era low and that helped boost the market in anticipation of tomorrow's employment report.
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Positive developments from EDIT and NTLA earnings pulled gene-editing stocks higher today.
Today I noticed multiple gene-editing stocks hitting the green on Stock Card’s winner’s list and my own portfolio. When there is positive news and developments in the field from clinical trials from one or two companies in the space, it pushes almost all stocks in that industry upwards with excitement. Today good news came from Editas Medicine (EDIT) and Intellia Therapeutics (NTLA) that released earnings reports with positive developments in their R&D and trial results.
Editas Medicine (EDIT) announced its first pediatric and adult high-dose cohorts for its EDIT-101 BRILLIANCE trial in its earnings report. This is a CRISPR-technology treatment for an inherited disease in human eyes. Also, the company’s sickle cell disease trial is on track to have its first dose given this year. Investors reacted positively to this news, brushing off the disappointing financial numbers that came through the earnings report. From the company's Stock Card, we know it is unprofitable and the losses keep getting bigger.
Intellia Therapeutics (NTLA) also brought good news to the table in its own earnings report. The company has been making progress with applying CRISPR therapy “in vivo,” or in other words, to living patients, not to a petri dish in a lab. Intellia announced that it now has a proof-of-concept for the technology. We covered some of this news as it broke, in a past episode.
Generally, when it comes to biotech companies like EDIT and NTLA, being involved in clinical trials means limited to no revenue and profit. What matters is cash. Both companies have solid cash reserves which we can see in the Cash Availability section of their Stock Cards. I own shares of both, have added to them several times, and plan to hold them for now.
One of the challenges with picking gene-editing stocks is the high volatility that comes with clinical trial news. Small good news can surge the stock high up, while small bad news can have the exact opposite effect. Meanwhile, the company is precisely the same company it was before the news. One way to deal with it is to focus on ETFs in the space. For example, take a look at ARKG, the genomic-focused ETF by ARK Invest on Stock Card. Its top 25 holdings include the majority of gene-editing stocks that you would want to have on your radar.
Also, as usual, you can type in gene editing in the search bar and get the full list of gene-editing stocks to start your research. I'll leave a link to the gene-editing list of stocks in the show notes.
Fiverr posted good earnings numbers, but the forecast for next quarter scared investors.
On the losers list, I noticed Fiverr (FVRR). The company released its earnings report late last night. Despite great numbers, the stock dropped immediately on open today and finished out the session with a 24% drop. According to the report, revenue grew 60% year-over-year as all metrics surpassed pre-pandemic growth levels. Active buyers grew 43% compared to this month last year, which was in the middle of the pandemic.
The stock dropped because of the company’s outlook for the rest of the year. The CEO cited people’s return to the outside world from lockdowns as a factor. Fiverr expects to see year-over-year revenue growth of 30-38% in the upcoming 3rd quarter, which is nearly half of this quarter’s results.
What did investors expect? The drop is quite expected. What matters is the company's ability to keep growing from here and use the user base it acquired to engage and spend more on the platform. I own shares, and if the drop continues, I may be a buyer once again.
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Did you catch today's live stream by Brian Feroldi and Brian Stoffel with Stock Card?
Before we wrap this up, you may have noticed the excitement in my voice today. That's because two of my favorite stock market analysts and diligent stock researchers, Brian Feroldi and Brian Stoffel joined the community of Stock Card portfolio publishers. Today, both Brians hopped on a Youtube livestream to analyze a stock and highlight some useful features of Stock Card.
Their mission is to spread the knowledge people need for financial wellness. That mission lines up with our goals at Stock Card quite well!
I highly recommend visiting the Stock Picks page and look up Brian Feroldi and Brian Stoffle and their portfolios live on our website.
Brian Feroldi runs two: a Quality Checklist Portfolio and an interesting Anti-Portfolio, which consists of the stocks he reviews but doesn’t think quite stack up. Brian Stoffel also has two portfolios: the Fragile Portfolio and Anti-fragile Portfolio.
You can always find our partner investors’ portfolios by searching their name on the left-hand side of the Stock Picks page. Don't forget to follow these four new portfolios on Stock Card to get notified of their future additions.
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