PTON Share Price Pops After Acquisition Announcement

Commodities Investing, Growth Stocks, Technology Stocks

Peloton Interactive Inc. (PTON) raced above $162 a share after announcing a $420 million deal to acquire Precor, a global commercial fitness company.  “Telsey Advisory Group analyst Dana Telsey said she expects the deal could increase PTON’s annual sales by $480 million to $500 million, assuming PTON retains Precor’s revenue,” as reported by CNBC.

Ocugen Inc. (OCGN) was up 160% after announcing a collaboration with Bharat Biotech on the development of Covaxin for COVID-19.  According to Roth Capital, this could be a “significant source of non-dilutive funding and potential revenue for the company, which now has the opportunity to work alongside a company that has had success in the space,” as noted by Seeking Alpha.  Better, Bharat Biotech already completed Phase 1 and 2 trials of the drug.  It’s now in a 26,000 person Phase study in India.  The company already believes it’s promising. 

Lithium Americas Corp. (LAC) was up again on the accelerating EV and lithium story.  In fact, with increased demand for both, lithium could be one of the hottest stories of 2021.  According to analysts at Roskill, “The underlying demand growth for lithium compounds remains strong, with demand from rechargeable battery applications forecast to exceed 220kt LCE in 2020, representing roughly 70% of total lithium demand.” 

FireEye Inc. (FEYE) gapped from $14 to $22.40 on cyberattacks.  Just recently, the Energy Department and National Nuclear Security Administration, which maintains the U.S. nuclear weapons stockpile were hacked.

According to Politico, “The attack on DOE is the clearest sign yet that the hackers were able to access the networks belonging to a core part of the U.S. national security enterprise. The hackers are believed to have gained access to the federal agencies’ networks by compromising the software company SolarWinds, which sells IT management products to hundreds of government and private-sector clients.”

SunPower Inc. (SPWR) raced from $20 to $30.65 on stimulus.  Reportedly, the $900 billion stimulus bill includes $35.2 billion for new energy initiatives.  According to The Washington Post, “It authorizes a sweeping set of new renewable energy measures, including tax credit extensions and new research and development programs for solar, wind and energy storage; funding for energy efficiency projects; upgrades to the electric grid and a new commitment to research on removing carbon from the atmosphere. And it reauthorizes an Environmental Protection Agency program to curb emissions from diesel engines.”

At time of this writing, Ian Cooper does not hold a position in any of the stocks mentioned.

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