TradePasta Weekend Summary 11/29/20
Markets, Additive Manufacturing, Cloud Collaboration, SPACS
The S&P 500 closed up 1.7% in a shortened holiday week. Energy and Consumer stocks led the way, while the healthcare sector as a whole outperformed on Friday. Shares of biotechs Novavax (NVAX) and Moderna (MRNA) rose over 20 and 15% respectively. Genetic information company Invitae (NVTA) resumed its uptrend on Friday, climbing over 6%.
Additive manufacturing, also known as “3-D printing” company Nano Dimension jumped by over 13% on Friday on news of a $100M offering. Investors were pleased with the terms of the deal, as the company should be able to increase market share in 2021 with the capital raise.
From the company’s website: “Nano Dimension (Nasdaq, TASE: NNDM) is a provider of intelligent machines for the fabrication of Additively Manufactured Electronics (AME). High fidelity active electronic and electromechanical subassemblies are integral enablers of autonomous intelligent drones, cars, satellites, smartphones, and in vivo medical devices. They necessitate iterative development, IP safety, fast time-to-market, and device performance gains, thereby mandating AME for in-house, rapid prototyping and production.”
Workplace collaboration tool developer Slack (WORK) surged by over 25% this week after Salesforce announced they would make an offer to buy the company. With Microsoft’s (MSFT) launch of “Teams” eating into Slack’s lunch, it’s fair to say that this was a lifeline to a company that seemed to be having a hard time finding a path to profitability in the enterprise software space. While we foresaw an acquisition, we believed it would have been a foreign tech company making the play. (Think German) Salesforce’s actions continue to reinforce the notion of “big tech getting bigger”, reminiscent of the railroad industry in the late 1800s.
In SPAC news, pay-per-mile auto insurer Metromile announced it will go public via a merger with INSU Acquisition Corp II.
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