Here is the list of the most hyped assets of the week insights and analysis
Apr 13 - Apr 20 2023
Prometheus Biosciences, Inc. (NASDAQ: RXDX)
Prometheus Biosciences is a biotech company pioneering a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic product candidates.
While the company’s initial focus was on IBD, it is now extending beyond gastrointestinal (GI) diseases to target other autoimmune diseases.
Merck's decision to buy Prometheus at a 75% premium relative to where the drugmaker's shares closed last Friday (total amount is nearly $11 billion) is having a ripple effect across the industry.
Its shares hit a 52-week high of $193.79 recently and likely could go higher since Merck has agreed to pay $200 a share. The deal is contingent on Prometheus shareholders' approval, but is expected to be completed by the third quarter of 2023, Merck said.
Prometheus' lead therapy, PRA023, which is in trials to treat ulcerative colitis (UC), Crohn's disease, and other autoimmune disorders, is the main attraction. Promising phase 2 clinical trial results Prometheus released in December make Merck think the drug could be a multimillion-dollar seller.
Last year, the company lost $148 million, but Prometheus is in a solid position, with nearly $700 million in cash and cash equivalents. It also had $6.8 million in collaboration revenue in 2022, compared with $3.1 million in the prior year.
Hype Change: 488%
Price Change: +68%
Plug Power Inc. (NASDAQ: PLUG)
Plug Power Inc (Plug Power) is an alternative energy company that designs and develops fuel cell structures. The company's product portfolio comprises ProGen, GenDrive, GenSure, GenKey, GenFuel – Hydrogen Solutions, and Hydrogen Electrolyzers.
With the strong Q1 2023 performance under its belt, management affirmed that it expects to ramp up production to 100 MW per month in the middle of Q2 2023 and to further increase production in the third quarter.
Plug Power has offered investors lofty predictions about how it will make progress over the next three years in pursuit of generating something positive on the bottom line. And while the company touted its success in setting a new high watermark for producing electrolyzers, there was no insight provided today into whether the company is on track to achieve its gross margin forecast of 10% for 2023.
KeyBanc downgraded Plug Power to Sector Weight from Overweight, resulting in a price fall subsequently.
Hype Change: 109%
Price Change: -10%
State Street Corporation (NYSE: STT)
State Street Corporation is an American financial service and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide.
It is the second-oldest continually operating United States bank; its predecessor, Union Bank, was founded in 1792.
State Street Global Advisors, is the world's fourth-largest asset manager and a pioneer in ETF and index investing.
State Street reported diluted earnings per share of $1.52 on total revenue of roughly $3.1 billion. Earnings, which are down 20% from the prior quarter, missed analyst estimates, while revenue was roughly in line with estimates.
The main culprit behind the miss was a drop in fee revenue, which fell 1% in the quarter and was down 9% year over year. The slide in fee revenue was due to lower market levels, lower foreign exchange trading fees, and a drop in fees from front-office software and data services.
The earnings miss was certainly disappointing, and it wasn't great to see net asset outflows, either. But the bank still expects to buy back $4.5 billion of stock this year, and State Street remains one of the largest custodians in the world.
While the overall change in price has only been 5% over the last week, STT shares have fallen over 13% before rising back up.
Hype Change: 97%
Price Change: +5%
Riot Platforms, Inc. (NASDAQ: RIOT)
Riot Platforms, Inc., formerly Riot Blockchain, Inc., is a Bitcoin-driven infrastructure platform.
The Company is engaged in Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. It is focused on supporting the Bitcoin ecosystem through proof-of-work mining.
As a Bitcoin mining-related stock, Riot has a vested interest in how the price of digital currency performs.
One possible factor hurting Bitcoin today is that the U.S. Dollar Index, which looks at the strength of the dollar compared to other currencies, moved higher today.
With the price now above the key $30,000 level, and seeming to be ready to move even higher, crypto miners are seeing incredible price appreciation.
While the prices have only risen by 31% overall, there was a 54% increase in price from April 10th until the 18th in the middle of this week due to the change in the prices of Bitcoin.
Hype Change: 50%
Price Change: +31%
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