Hot Stocks: Green energy retreat; TXG, CDXS drop on guidance; PINS rises

Stocks closed higher on Friday, recovering after a downtrend that has dominated most of the past few days. The gains came amid renewed confidence that the Federal Reserve would stick to an expected 75 basis point rate hike its next monetary policy meeting, rather than resorting to a full percentage point hike, which had been theorized immediately following the release of inflation data earlier in the week.

While the overall market trended slightly higher, solar and alternative energy stocks came under downward pressure. A collapse in talks on new government spending on green energy prompted the sale of stocks including Plug Power (PLUG), FuelCell Energy (FCEL), Maxeon Solar Technologies (MAXN), First Solar (FSLR) and Sunrun (RUN).

10x Genomics (TXG) and Codexis (CDXS) represented other standouts on the bottom. Both stocks posted significant declines following the release of weak forecasts.

On the other hand, Pinterest (NYSE: PINS) was among the day’s standout gainers, boosted by news that an activist investor had taken a large stake in the company.

sector in focus

Solar and other alternative energy stocks fell after a key US senator pulled out of talks over a possible spending bill. Investors feared that the development reduced the chances that the industry would receive the government stimulus measures under consideration.

US Senator Joe Manchin (D.-WV) broke off discussions on an economic package that included new spending on green energy. The senator wanted to wait for incoming economic information, but left open the possibility that the talks could be resumed later.

Plug Power (PLUG) was among the stocks hardest hit by the sector’s pullback. Shares fell nearly 13% on the day. FuelCell Energy (FCEL) was also down, slipping nearly 8%.

The decline also impacted Maxeon Solar Technologies (MAXN), which closed nearly 13% lower. First Solar (FSLR) is down more than 8%, while Sunrun (RUN) is down 6%.

Outstanding Winner

Pinterest (PINS) drew buying interest on reports that an activist investor has taken a sizable stake in the company, which is up 16% during the session.

The Wall Street Journal reported that Elliott Management has acquired a 9% stake. The activist investor has also started talks with the social media firm, the WSJ said.

Buoyed by the news, PINS rose $2.84 to close at $20.40. Despite the surge, shares remained in a recent range and rallied near a 52-week low of $16.14 set in May.

Shares are down about 44% in 2022 and about 70% over the past 12 months.

Standout Loser

10x Genomics (TXG) experienced a massive selling frenzy after releasing a disappointing forecast. Shares ended the session down 17%.

The biotech, which makes gene sequencing technology, now expects total sales of around $114.5 million in 2022, down from the nearly $128 million analysts have been forecasting. The company reported that it saw sales decline in Europe and Asia-Pacific while sales rose in the Americas.

TXG closed at $35.90 and fell $7.39 on the day. With the pullback, the stock also hit a 52-week intraday low of $33.30.

Added Friday’s slide to a longer-term pullback. TXG is now down about 75% in 2022.

Notable new low

Despite a big deal with Pfizer (PFE), Codexis (CDXS) fell almost 45% during the session after the company released disappointing forecasts. With the slide, the stock hit a new 52-week low.

CDXS signed a contract to supply an enzyme for PFE to be used in the manufacture of nirmatrelvir, the main active ingredient in the COVID antiviral pill Paxlovid. As part of the transaction, the company will receive a commission of US$25.9 million.

To counteract the impact of this news, the company announced separately that it is now reporting second-quarter revenue of $38 million. That target was below the $40 million forecast by analysts.

Pulled down by the disappointing forecast, CDXS fell $5.40 to close at $6.67. During the session, the stock hit a 52-week daily low of $6.15.

For more on the day’s biggest winners and losers, visit Seeking Alpha’s On The Move section. Hot Stocks: Green energy retreat; TXG, CDXS drop on guidance; PINS rises

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