​This Week in Emerging Growth: Well America, It Was a Good Run While It Lasted

Joel Anderson  |

Well, everyone woke up Wednesday morning to a future where there really will be a President Trump. And, while some of us might call that a living nightmare (me, for one), markets seemed to shake off their premarket jitters in time to make a modest run to a record high for the Dow on Thursday despite a number of the biggest tech firms taking a big hit.

Russell 2000 This Week: 118.94 (10.22%) to 1,282.38

S&P 500 Same Period: 79.27 (3.80%) to 2,164.45

Top Reads of the Week

Deals Recap:

  • Data analysis company Periscope Data raised $25 million in a series B round led by Bessemer Venture Partners.
  • Data management firm Treasure Data raised $25 million in a series C round led by Innovation Network Corporation of Japan.
  • Information storage architect Datalink was acquired by Insight Enterprises (NSIT) for $454 million.
  • Internet protocol infrastructure provider Earthlink (ELNK) was acquired by Windstream (WIN) for $1.1 billion.
  • Online security company RiskIQ raised $30.5 million in a series C round led by Georgian Partners.
  • Hiring app Job Today raised $20 million in a series B round led by Flint Capital.
  • Enterprise software company for digital branding TubeMogul (TUBE) was acquired by Adobe Systems (ADBE) for $540 million.
  • Global network connecting North America, Europe, and Asia Hibernia Networks was acquired by GTT Communications (GTT) for $590 million.

Emerging Growth News

  • Infusion solution provider BioScrip (BIOS) saw shares cut in half on Tuesday following an earnings report in which revenues declined year-over-year and guidance was cut. I’m guessing this necessitated a home-infusion of bourbon for its investors.
  • Healthcare services company Kindred Healthcare (KND) plunged nearly 30% on Tuesday after the company’s Q3 earnings report showed sagging sales and lower guidance. So, at least BioScrip has a kindred spirit.
  • Independent oil and gas company Earthstone Energy (ESTE) popped more than 40% this week following a better-than-expected Q3 earnings report.
  • The Trump victory had markets moving on Wednesday, with a solid day for the major indices driven by gains in industries that a Trump administration is expected to be friendlier to, including for-profit education companies, oil and gas producers, biotech companies and drug makers, much of the financial sector, and, of course, private prisons. Meanwhile, hospital stocks and solar stocks were on the decline for the same reasons. That’s a prospective Trump administration for you: good for prisons, bad for hospitals.
  • Agriculture technology company AgroFresh had a Q3 earnings report bad enough to cut share value nearly in half on Wednesday, then shaved another 15% off on Thursday to bring the sum total to nearly a 60% loss over two days.
  • Of course, even a Trump win didn’t make biopharma immune from its Achilles heel: bad late stage clinical results. That’s what hit Anthera Pharmaceuticals (ANTH), which saw shares plummet more than 30% after its treatment for systemic lupus erythematosus missed its primary endpoint.
  • It’s been a rough year for investors in biotech company Mannkind (MNKD), with shares down almost 60%. However, prior to Thursday, that was about 68%, so things are looking up! That was because the company bounced back to the tune of 33% after a solid earnings report and Sanofi (SNY) making progress in paying off its outstanding obligations from a previous licensing agreement.
  • SnapChat (SNAP) debuted its Spectacles on Thursday, glasses with a camera so users can quickly and easily capture and “snap” what they see, by placing a temporary vending machine on Venice Beach and selling them for $130 a pop. So, you know, at least there’s hope for the future.
  • Former popular startup Nasty Gal filed for bankruptcy this week. The online fashion retailer geared toward millennial women started as an eBay (EBAY) store 10 years ago went on to become recognized as one of the fastest-growing players in the ecommerce space just a few years ago. According to Crunchbase, Nasty Gal raised $65 million in venture funding during its run. Not a great week for nasty females.
  • Shares of PTC Therapeutics soared nearly 90% Friday to close at $11.30, equating to a market cap of $385 million. Reports that Translarna, the company's Duchenne muscular dystrophy drug, gained support for renewal in the EU. Concerns of possible rejection has created downward pressure on shares of PTC, which started the year at around $35.

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