Please ensure Javascript is enabled for purposes of website accessibility

Why Purple Innovation, Presidio, and InMode Jumped Today

By Dan Caplinger - Aug 14, 2019 at 4:27PM

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

Good news from these companies helped them avoid a big market sell-off.

The extreme volatility in the stock market continued on Wednesday, and this time, most major benchmarks posted big losses. The bad news came on the macroeconomic front, as investors reacted badly to a big drop in long-term interest rates that triggered fears of a recession. Yet even though popular indexes fell about 3%, some stocks managed to post gains. Purple Innovation (PRPL -2.66%), Presidio (PSDO), and InMode (INMD -0.92%) were among the top performers. Here's why they did so well.

Purple makes investors more comfortable

Shares of Purple Innovation jumped 19% after the maker of mattresses, pillows, and cushions reported strong results in its second-quarter financial report. Purple said that revenue soared 36% compared to year-ago levels, with a big reduction in operating costs helping the company narrow its losses significantly from the same period last year. CEO Joe Megibow attributed the gains to better marketing and more partnerships with wholesale distributors. Investors can also look forward to a promising rest of the year, and Purple Innovation believes that it's moving in the right direction to achieve its long-term growth goals.

Woman on a bed with a purple mattress, in a room with a purple wall.

Image source: Purple Innovation.

Presidio to go private

Presidio saw its stock gain 22% following news that the tech services company will go private. Investment company BC Partners offered to buy Presidio in a $2.1 billion deal, with shareholders to receive $16 per share in cash. CEO Bob Cagnazzi said that going private will "provid[e] us with a partner that can add strategic and operational expertise to our business" while rewarding its shareholders. Judging from the stock's moves during the session, some investors seem to think that a higher bid might come in the future, but for now, shareholders seem content to enjoy the nice bump higher for the IT company's stock.

InMode follows up on its IPO

Finally, shares of InMode popped 16%. The medical aesthetics specialist just went public earlier this month, and Tuesday afternoon's release of second-quarter results gave new investors more faith in the company's prospects. Revenue jumped 55% from Q2 2018, and net income more than doubled. InMode has bulked up its sales force in order to increase demand for its products, and those efforts have paid off, especially in the U.S. market. More clinical workshops have helped lift the average sale price of the company's platforms as well. With so much interest in aesthetics, InMode's IPO timing appears to have been good, and shareholders hope the business will keep expanding for the foreseeable future.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Presidio, Inc. Stock Quote
Presidio, Inc.
InMode Ltd. Stock Quote
InMode Ltd.
$36.64 (-0.92%) $0.34
Purple Innovation, Inc. Stock Quote
Purple Innovation, Inc.
$3.85 (-2.66%) $0.10

*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 08/15/2022.

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.