Yahoo Finance Why Purple Innovation, Presidio, and InMode Jumped Today
The extreme volatility in the stock market continued on Wednesday, and this time, most major benchmarks posted big losses. The bad news came on the macroeconomic front, as investors reacted badly to a big drop in long-term interest rates that triggered fears of a recession. Yet even though popular indexes fell about 3%, some stocks managed to post gains. Purple Innovation (NASDAQ: PRPL), Presidio (NASDAQ: PSDO), and InMode (NASDAQ: INMD) were among the top performers. Here's why they did so well.
Purple makes investors more comfortable
Shares of Purple Innovation jumped 19% after the maker of mattresses, pillows, and cushions reported strong results in its second-quarter financial report. Purple said that revenue soared 36% compared to year-ago levels, with a big reduction in operating costs helping the company narrow its losses significantly from the same period last year. CEO Joe Megibow attributed the gains to better marketing and more partnerships with wholesale distributors. Investors can also look forward to a promising rest of the year, and Purple Innovation believes that it's moving in the right direction to achieve its long-term growth goals.
Image source: Purple Innovation.
Presidio to go private
Presidio saw its stock gain 22% following news that the tech services company will go private. Investment company BC Partners offered to buy Presidio in a $2.1 billion deal, with shareholders to receive $16 per share in cash. CEO Bob Cagnazzi said that going private will "provid[e] us with a partner that can add strategic and operational expertise to our business" while rewarding its shareholders. Judging from the stock's moves during the session, some investors seem to think that a higher bid might come in the future, but for now, shareholders seem content to enjoy the nice bump higher for the IT company's stock.
InMode follows up on its IPO
Finally, shares of InMode popped 16%. The medical aesthetics specialist just went public earlier this month, and Tuesday afternoon's release of second-quarter results gave new investors more faith in the company's prospects. Revenue jumped 55% from Q2 2018, and net income more than doubled. InMode has bulked up its sales force in order to increase demand for its products, and those efforts have paid off, especially in the U.S. market. More clinical workshops have helped lift the average sale price of the company's platforms as well. With so much interest in aesthetics, InMode's IPO timing appears to have been good, and shareholders hope the business will keep expanding for the foreseeable future.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
