Despite the quieter back half of the week due to the Thanksgiving holiday, there was still plenty of action in the markets, with several stocks capturing investor attention.
Symbotic (SYM)
- Performance: Shares plunged 37% on Wednesday.
- Reason: Delayed filing of annual 10-K due to a revenue recognition error involving non-billable cost overruns.
- Reactions:
- TD Cowen: Maintained Buy rating, calling the reaction “overdone.”
- DA Davidson, Craig-Hallum, KeyBanc: Downgraded to Hold/Neutral.
Rivian Automotive (RIVN)
- Performance: Gained 13% on Monday.
- Key News:
- Tesla announced a “conditional” settlement in a trade secrets lawsuit.
- Received a $6.6 billion conditional loan commitment from the U.S. Department of Energy to expand EV design and manufacturing.
- Analyst Take:
- Truist called the DOE loan “incremental positive” but emphasized focus remains on the R2 production startup in Georgia.
Rocket Lab USA (RKLB)
- Performance: Shares surged 18% this week, trading around $27.32 (+6.4% Friday).
- Key Drivers:
- $23.9 million funding from the U.S. Department of Commerce under the CHIPS Act for semiconductor manufacturing.
- Achieved a milestone with two successful satellite launches in 24 hours (Virginia and New Zealand).
- Placed five Kinéis satellites into low Earth orbit.
- Analyst Reaction:
- KeyBanc raised the price target to $27 from $12, maintaining an Overweight rating.
Summary:
- Symbotic (SYM): Hit by a revenue recognition error, leading to a sharp sell-off.
- Rivian (RIVN): Benefited from Tesla settlement and DOE loan, positioning well for long-term growth.
- Rocket Lab (RKLB): Strong momentum from CHIPS Act funding and operational milestones.
These developments highlight varying challenges and opportunities across industries, with analysts weighing near-term risks against long-term potential.
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