5i Research Weekly Rockets and Duds
Welcome to the first edition of 5i's Rockets and Duds, a tongue-in-cheek weekly wrap up of some big market movers.
Rocket Labs $RKLB (ROCKET) 
Certainly, an appropriate stock for our inaugural 'Rocket' category. RKLB surged 17% last week, taking its market cap to nearly $14 billion. Talk about a rocket: the stock is now up 393% so far in 2024. Excitement came as the company completed two launch missions--in both hemispheres--within 24 hours last week. Since Space X is still a private company, it looks like many investors are looking for alternative 'to the moon' stocks.
Certainly, an appropriate stock for our inaugural 'Rocket' category. RKLB surged 17% last week, taking its market cap to nearly $14 billion. Talk about a rocket: the stock is now up 393% so far in 2024. Excitement came as the company completed two launch missions--in both hemispheres--within 24 hours last week. Since Space X is still a private company, it looks like many investors are looking for alternative 'to the moon' stocks.
Cassava Sciences Inc. $SAVA (DUD) 🚫Alzheimer's is a horrible disease without a lot of beneficial treatment options. Cassava hoped to solve this problem with its drug simufilam, in Phase III trials. However, SAVA plunged 86% last week as the Phase III trial showed the drug did not even meet the pre-specified endpoints in any category: co-primary, secondary, and exploratory. The results were no surprise though to short sellers, who ganged up on the company this year after it was fined $40 million over charges related to misleading statements about the Phase II trial of the same drug. We are sure SAVA investors would like to 'forget' this whole mess.
Symbotic Inc. $SYM (DUD) 🚫 If we told you we had a $15 billion market cap company heavily involved with automation, robotics, and artificial intelligence we are sure you would assume the stock had surged in 2024. But you would be wrong. The stock fell 30.6% last week and is down 47% for the year. The issue? Revenue recognition issues (which it has admitted to) have led the company to delay its financial reporting requirements. What's with these companies that can't follow basic accounting procedures and file statements? Maybe they should promote the robots to accountants and make one of the robots the CFO.
Archer Aviation Inc. $ACHR (ROCKET) You could say this one was 'flying' last week. Archer, a $4 billion company with no operational revenue yet, rose 58% last week. Archer, which is developing electric vertical take-off and landing (eVTOL) aircraft, surged on news it had received $50 million in new funding from Mudrick Capital Management. Investors don't seem to care that eVTOL approval from the FAA isn't expected for at least a few years, they want in on this nascent industry now. The stock is still 'hovering' at half the levels it achieved in 2021, however.
You could say this one was 'flying' last week. Archer, a $4 billion company with no operational revenue yet, rose 58% last week. Archer, which is developing electric vertical take-off and landing (eVTOL) aircraft, surged on news it had received $50 million in new funding from Mudrick Capital Management. Investors don't seem to care that eVTOL approval from the FAA isn't expected for at least a few years, they want in on this nascent industry now. The stock is still 'hovering' at half the levels it achieved in 2021, however. 
Well Health Technologies Corp. $WELL (ROCKET) WELL, an operator of healthcare facilities and provider of software for the digitization of the healthcare sector, rose 13% last week. There was no specific news, but small cap stocks had a fabulous month in November, and WELL moved even though the Trump victory has scared many in the healthcare sector, with rhetoric of lower drug prices and other potential negative policy moves. We all know the healthcare sector could use some 'fixing' and it is good to see investors start to appreciate WELL for its growth within the sector. 5i Research Members can see our report on the company here.
WELL, an operator of healthcare facilities and provider of software for the digitization of the healthcare sector, rose 13% last week. There was no specific news, but small cap stocks had a fabulous month in November, and WELL moved even though the Trump victory has scared many in the healthcare sector, with rhetoric of lower drug prices and other potential negative policy moves. We all know the healthcare sector could use some 'fixing' and it is good to see investors start to appreciate WELL for its growth within the sector. 5i Research Members can see our report on the company here. 
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