Investors haven't been quite sure what to think about the Nasdaq Composite (^IXIC 3.33%) lately. On one hand, the index is still up sharply over the past year. Yet it's also consistently lagging other major market benchmarks. As of 2:30 p.m. EST today, the Nasdaq was up just 0.1%, compared to record-setting gains for other indexes.
Some of the doubts about the Nasdaq stem from the fact that many high-growth stocks have suffered big losses lately. Yet at least today, confidence is back for a couple of high-flying growth stocks. Talend (TLND) and Inari Medical (NARI 5.34%) are leading the way higher with big gains. Below, we'll tell you a little more about these stocks and why they're higher.
Talend is going private
Shares of Talend soared 28% on Wednesday afternoon. The French cloud-data specialist got a buyout bid from a private equity company that will give shareholders a nice payday.
Thoma Bravo offered to buy Talend for $2.4 billion. That works out to $66 per share in cash, and the stock quickly rose to within pennies of that level following the announcement. That's almost $14 higher than the $51.30 closing price for the stock on Tuesday.
Talend has been undergoing a transformation over the past year, and although the company has been willing to continue as a stand-alone business, it has also looked at possible alternatives consistently. Going private is arguably the best of both worlds, as it gives Talend the ability to keep investing in its cloud transition and come up with new products while building value for a potential exit down the road.
It's possible that another bidder could emerge for Talend, but the Thoma Bravo offer is for a share price that the company achieved only once in its five-year history as a publicly traded stock. It seems more likely that Talend will go private, and we'll have to see whether investors ever get another chance to participate in its growth.
Inari looks healthy
Elsewhere, shares of Inari rose 18%. The maker of medical devices targeting blood clots reported strong results for the fourth quarter of 2020 and gave investors a vote of confidence in its future.
Inari's numbers were impressive. The company treated a record 4,600 patients during the quarter, causing revenue to jump 144% from year-earlier levels. Part of the success came from the introduction of the Triever 20 Curve device, which opens up a $200 million addressable market for clot-in-transit patients. Earnings per share surged to $0.13, up from just $0.01 this time last year.
Moreover, Inari sees the good times continuing. It believes that 2021 revenue should rise 61% to 68%, even in light of uncertainties regarding the pandemic. The company also has ample cash to make it through any difficult conditions while affording it plenty of strategic flexibility.
Blood clots and pulmonary embolisms are an all-too-frequent occurrence in patients, but Inari's products are gaining traction in treating them. The stock appears to have considerable upside, and that's making growth investors quite happy in the wake of the news.