Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The stock market enjoyed a relatively quiet day, with the Dow Jones Industrials eking out another record high with a gain of 21 points as many investors and financial professionals enjoyed the Veterans' Day holiday. For Gogo (GOGO 3.25%), ViroPharma (NASDAQ: VPHM), and voxeljet (VJET), however, today was anything but quiet, with all three companies posting big gains on the day. Let's take a closer look at each of these stocks to see why they soared today.
Gogo climbed 29% after announcing third-quarter earnings results that fully lived up to investors' hopes. The company, which helps provide online access aboard airplanes, reported sales that jumped nearly by half as Gogo boosted the number of aircraft carrying its service by 24%. In all likelihood, the fact that the popular Chromebook line of laptops comes with free Gogo passes has played a major part of investor awareness of the stock. With revenue guidance well ahead of expectations, Gogo has plenty of room to fly higher.
ViroPharma picked up 26% as shareholders celebrated a $4.2 billion buyout offer from drug company Shire. The gains leave ViroPharma stock just 1% below the $50 per share that Shire is offering, with Shire looking squarely at ViroPharma's treatments for various rare diseases to help it better establish a stronger niche in the segment. As large pharmaceutical companies seek to survive challenges like patent expirations, investors can expect further consolidation in the industry among promising smaller players like ViroPharma.
3-D printing upstart voxeljet gained 14%, largely riding the coattails of fellow 3-D printing companies that reported favorable earnings and announced new product launches recently. For its part, voxeljet won't report until Thursday night, but the newly public company has a lot to prove as it has jumped by more than 50% in less than a month since its mid-October IPO. Despite the unmistakable potential of 3-D printing, investors still need to be cautious as momentum investors continue to pour into the space. As market capitalizations start to stretch to encompass even the most bullish of scenarios, it's likely that at least some companies in the space will end up big losers in the long run.
