Please ensure Javascript is enabled for purposes of website accessibility

Why Akamai Technologies, NuVasive, and MacroGenics Jumped Today

By Dan Caplinger - Oct 25, 2017 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Even though the market slumped, these stocks gained ground. Find out why.

Wednesday was a down day for the market, with major benchmarks pulling back from their record closes earlier in the week. The Dow fell by triple digits on earnings-related weakness from one of its most influential components, and in general, market participants seem to feel as though heightened valuations across many different sectors are making it harder for fundamental results to keep up with share-price gains. Yet despite the hiccup in popular indexes, several stocks posted good enough news to send their shares higher. Akamai Technologies (AKAM 0.86%), NuVasive (NUVA 2.24%), and MacroGenics (MGNX 3.39%) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Akamai sees more interest

Shares of Akamai Technologies rose 4% after the company reported third-quarter financial results. The internet bandwidth efficiency specialist enjoyed revenue gains of 6% on strength in its cloud security solutions division. Akamai said that it did better internationally, with 18% sales gains compared to just a 1% move higher domestically. The core media delivery solutions business saw year-over-year declines on the top line, but Akamai nevertheless reported an acceleration in traffic growth within media. Akamai has raised some doubts with its past performance, so today's results were well-received.

Akamai operations center with world maps showing traffic activity and a variety of television monitors and other sensing equipment.

Image source: Akamai Technologies.

Buybacks send NuVasive higher

NuVasive stock picked up more than 8% in the wake of the company's release of its third-quarter financial report and news of a major stock repurchase program. NuVasive's sales were up just 3%, but a more-than-25% move higher in adjusted net income helped power better-than-expected bottom-line performance. The maker of spinal surgical equipment technology also said that it would spend up to $100 million on stock buybacks over the next three years, seeking to take advantage of recent declines in its share price. NuVasive faces competition in an increasingly crowded market, but its early mover advantages should keep it ahead of rivals for the foreseeable future.

MacroGenics makes a deal

Finally, shares of MacroGenics jumped 17%. The tiny biotechnology company agreed to give worldwide rights to its experimental cancer therapy MGA012, which is a monoclonal antibody targeting the PD-1 protein. Incyte (INCY 2.24%) will collaborate with MacroGenics to commercialize MGA012, paying MacroGenics $150 million in upfront cash payments. An additional set of milestone payments could deliver another $750 million to MacroGenics if MGA012 is successful, along with royalties of 15% to 24% if MGA012 gains FDA approval and commercial success. Some question whether checkpoint inhibitor therapy is getting overhyped, but for now, MacroGenics is cashing in on interest in the area.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Akamai Technologies, Inc. Stock Quote
Akamai Technologies, Inc.
$92.12 (0.86%) $0.79
NuVasive, Inc. Stock Quote
NuVasive, Inc.
$50.26 (2.24%) $1.10
MacroGenics, Inc. Stock Quote
MacroGenics, Inc.
$3.05 (3.39%) $0.10
Incyte Corporation Stock Quote
Incyte Corporation
$77.67 (2.24%) $1.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.