5i Research Weekly Rockets and Duds

Welcome to week three of 5i Research's market ROCKETS AND DUDS

Broadcom $AVGO : Broadcom joined the exclusive one-trillion-dollar club this week, on the back of strong earnings and guidance, with its AI chips leading the charge. The stock rose 25% for the week and is now up 101% for the year. It pays a 1.05% dividend too, after an 11% dividend hike this week. For all those worried that the AI robots are going to take over your jobs, maybe consider buying some Broadcom stock as a hedge.

Dave & Busters $PLAY   FUN: Playing arcade games and winning cheap Chinese toys while drinking beer at Dave & Busters. NOT FUN: Owning Dave a& Busters stock. The stock fell 25% this week. The company missed earnings estimates by a wide margin, but investors were likely more worried about the sudden resignation of the CEO. For him, it was 'Game Over', but at least the interim CEO showed his support with some insider buying later in the week. Well, maybe beer sales will go up at the company's locations as shareholders try to drown their sorrows. 

Uniqure NV $QURE  Unqiure has a cool symbol, QURE, for a drug company, but a better one, CURE, was already taken by a triple-leveraged healthcare ETF. The risky ETF is down 2% for the year, but QURE has kicked the ETF's butt with a 127% year-to-date gain and a 107% gain last week alone. Uniqure shares doubled on Tuesday after the company reached a testing agreement with the FDA for its Huntington disease treatment. Its gene therapy, called AMT-130. If AMT -130 shows a benefit in treating the disease, Uniqure could get accelerated drug approval. 

Bicycle Therapeutics $BCYC True or False? Bicycle Therapeutics is where dads take their kids' bikes after they tried to 'fix' them and only made the problems significantly worse. Answer: FALSE. Bicycle Therapeutics is a $600 million drug developer, working on cancer therapies. It reported disappointing clinical trial results this week. Here, let's let an analyst from B. Riley explain: " the results for Bicycle's zelenectide pevedotin therapy in conjunction with Merck's pembrolizumab to treat bladder cancer included "a significant proportion of unconfirmed responses," and while the data are early, he says the effectiveness appears to be "somewhat underwhelming," when compared to the established combination of Astellas' Padcev + pembro. Got that? The stock fell 31% this week on this news. 

Rigetti Computing $RGTI  No, Rigetti is not a type of pasta.  It was Revenge of the Nerds this week as Alphabet's quantum computing breakthrough set the computing world on fire, with quantum computing suddenly becoming 'the next big thing'. No matter that commercialization of the technology is likely years away--investors want in, NOW. Rigetti shares surged 63% this week. Rigetti has minimal revenue, a bit of cash, losses and highly negative cash flow. But no matter, it's a hot stock right now, trading at nearly 200 times' expected 2024 sales. Short seller Citron Research called the shares 'ridiculous' at current levels. Note to any stock buyers: If you cannot explain Quantum Computing to your 10 year-old child, maybe you should reconsider your purchase. 

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Analysts of 5i Research responsible for this report have a financial or other interest in AVGO. The i2i Fund does not have a financial or other interest in securities mentioned.