We share commentaries on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week.
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Stock Commentary: OKLO, NTLA, MTLS, & TSLA
It's Saturday, October 26, 2024
Hello CAROLYN,
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.
Oklo (OKLO)
22%
Shares of Oklo traded up ~22% on Monday on no new company-specific news, though perhaps in continuation of the rally in nuclear stocks last week after Google1 and Amazon2 announced agreements to purchase power from Small Modular Reactors for their AI data centers. Oklo designs and develops small modular reactors to provide reliable, commercial-scale energy to customers in the United States, with its first deployment scheduled for 2027.
Intellia Therapeutics (NTLA)
20%
Shares of Intellia Therapeutics traded down ~20% on Thursday after the company released3 data from its Phase 2 trials for NTLA-2002, an in-vivo CRISPR-Cas9 therapy for hereditary angioedema (HAE). With no serious adverse side-effects, NTLA-2002 at the 50mg dose level reduced mean monthly attack rates by 77% and 81% during weeks 1-16 and 5-16, respectively, compared to the placebo. Importantly, eight of eleven patients had no attacks. According to management,4 the three patients who self-reported attacks are likely to report fewer attacks once the study is unblinded and they know whether they are on NTLA-2002, as happened after Intellia released Phase 1 results. That said, some investors are concerned that the results of the three patients might be signaling that NTLA-2002 will not be viewed as a cure, a view with which we disagree completely. Intellia Therapeutics develops in vivo genome-editing-based therapeutics for various indications.
Materialise NV (MTLS)
18%
Shares of Materialise NV traded up ~18% on Thursday after the company reported5 better-than-expected third-quarter earnings, including ~24% revenue growth in its medical segment. Materialise NV offers 3D printing design software and prototype solutions to businesses around the world.
Tesla (TSLA)
21%
Shares of Tesla traded up ~21% on Thursday after the company reported6 better-than-expected third-quarter profitability, driven by record-low vehicle costs, additional revenue recognition for Full Self-Driving (FSD) software, and significant growth in energy storage and services. Management reaffirmed plans to release a low-cost vehicle in the first half of 2025 that should support its target for 20-30% vehicle growth and announced that it will launch a ride-hail service in California and Texas next year. Tesla is an artificial intelligence (AI) company that sells vehicles, energy storage products, and autonomous driving solutions.
[1] Google. 2024. “New nuclear clean energy agreement with Kairos Power.” [2] Amazon. 2024. “Amazon signs agreements for innovative nuclear energy projects to address growing energy demands.” [3] Intellia Therapeutics. 2024. “Intellia Presents Positive Results from the Phase 2 Study of NTLA-2002, an Investigational In Vivo CRISPR Gene Editing Treatment for Hereditary Angioedema (HAE).” [4] SA Transcripts. 2024. “Intellia Therapeutics, Inc. (NTLA) Call to Discuss NTLA-2002 Phase 2 Study Results Transcript.” Seeking Alpha. [5] Materialise. 2024. “Materialise Reports Third Quarter 2024 Results.” [6] Tesla. 2024. “Q3 2024 Update.”
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