While it's a relatively quiet day for the Nasdaq Composite (^IXIC -2.06%) itself today, there's a lot of volatility within its component stocks. As of 1:23 p.m. ET on Aug. 11, the stock index is up a modest 0.25%. That's good enough to keep it up more than 20% from the recent lows in June, continuing its recent bull run.
Shares of battery maker Enovix (ENVX 3.74%) are up 32%, and shares of both 23andMe (ME -6.27%) and Trupanion (TRUP 5.71%) are up around 7%. On the downside, shares of smart-speaker maker Sonos (SONO -0.09%) and card issuing and payment processing company Marqeta (MQ -3.93%) are both down around 25% at this writing.
Battery start-up Enovix sells some batteries; market approves
Since its founding, Enovix has been almost entirely focused on research and development. But in 2021, it made a commitment to begin the transition from developing a product to making it -- and selling it -- by the second quarter of 2022. Well, it met that goal in the quarter, shipping battery cells to 10 original equipment manufacturers (OEMs), which will use the cells in their products, and generating a modest amount of revenue from those cells. Needless to say, investors were incredibly pleased by this, as it positions the company to begin generating cash flows and delivering on its potential.
Investors should remain somewhat cautious, however. It's still very early in its transition to commercial sales, and the majority of cells it's shipping at this stage are likely to be used by OEMS for testing, not with finished products. To be clear, this is still a big step forward, but Enovix's products still have to meet OEMs' standards, and it must compete in a big, but highly competitive, market.
23andMe, Trupanion represent general bullishness driving stocks higher
Genetics research company 23andMe and pet insurer Trupanion are both up strongly today, but not on any very recent news. 23andMe's shares have been climbing for most of the past week, up almost 30% since the day before it reported second-quarter results, while shares of Trupanion are up 13% since its Aug. 3 earnings release. Neither company has any particularly material news out there today. However, if there is one common thread both companies share, it's short interest, or how much of its stock float is sold short: 7% of 23andMe's shares are sold short, while 15% of Trupanion's are shorted. It's possible the recent gains for both is short-sellers reducing their positions.
That's great for a short-term move higher, but both companies have a lot to prove about their ability to grow and generate positive cash flows to generate long-term wealth to shareholders.
Leadership changes rocking the boat for Sonos and Marqeta
While investors seem more optimistic in the three prior stocks, Sonos and Marqeta left shareholders uneasy -- nay, downright worried -- this week. Sonos reported a 2% revenue decline, weakening margins, and a net loss after being profitable in last year's second quarter. Adding to that uncertainty, CEO Patrick Spence told investors that CFO Brittany Bagley was leaving the company to "pursue another professional opportunity," while the company's Chief Legal Officer was stepping in as interim CFO.
Marqeta investors were even more shocked by big leadership changes. Company founder Jason Gardner announced that he was stepping down as CEO once a replacement is named. At the same time, COO Vidya Peters is also leaving, with its chief product officer taking over on an interim basis. Gardner did say that when he vacates the CEO chair, he would remain in a leadership role as executive chairman.
Needless to say, these both demonstrate that investors are looking for certainty in the ongoing environment, and weak results combined with management changes -- especially when there's not a replacement already named -- is enough to send investors heading for the exits.