5i Research Weekly Rockets and Duds
Last week the market freaked out on the prospects of AI 'eating' software companies. Still, how bad could it be when no software companies made it to our 'DUDS' list?
Lumentum Holdings LITE
Breaking up is GOOD! In last week's Rockets and Duds one of the Rockets was Viavi Solutions VIAV, one of the spin-out companies from JDS Uniphase. This week the other half of the spin off is a Rocket, with Lumentum shares gaining 41% last week, bringing their one-year gain to 543%. LITE certainly was no lightweight last week, after posting strong results and a solid outlook. In the second quarter, earnings per share nearly quadrupled. Third quarter guidance was 38% better than estimates. LITE-em up, baby!!!
Lumentum Holdings LITE
Breaking up is GOOD! In last week's Rockets and Duds one of the Rockets was Viavi Solutions VIAV, one of the spin-out companies from JDS Uniphase. This week the other half of the spin off is a Rocket, with Lumentum shares gaining 41% last week, bringing their one-year gain to 543%. LITE certainly was no lightweight last week, after posting strong results and a solid outlook. In the second quarter, earnings per share nearly quadrupled. Third quarter guidance was 38% better than estimates. LITE-em up, baby!!!
XPO Inc. XPO What do investors do when the technology sector hiccups and corrects? That's right. You buy the most non-tech stocks you can find. What could be more 'non tech than a truck? XPO, a trucking company, saw its shares rise 37% last week on strong earnings and higher margins. Even though there were 'soft demand conditions' margins moved significantly higher. That doesn't make much logical sense, but of course the market was not exactly logical last week, anyway. XPO shares moved up more last week than they have in the entire preceeding year.
What do investors do when the technology sector hiccups and corrects? That's right. You buy the most non-tech stocks you can find. What could be more 'non tech than a truck? XPO, a trucking company, saw its shares rise 37% last week on strong earnings and higher margins. Even though there were 'soft demand conditions' margins moved significantly higher. That doesn't make much logical sense, but of course the market was not exactly logical last week, anyway. XPO shares moved up more last week than they have in the entire preceeding year. 
Enphase Energy ENPH More sun!! Less tax!!! Shares of solar company Enphase rose 35% last week as customer orders surged in advance of the expiration of tax credits on solar roof panels, set to expire in July. The stock rose as much as 41% on Wednesday, its biggest move in five years. Of course, prior to Tuesday, they were down more than 40% in the year leading up to its earnings release. The company talked up its numbers and forecast, but there was little discussion of what happens AFTER July. Investors should, perhaps, look up 'pull forward' sales.
More sun!! Less tax!!! Shares of solar company Enphase rose 35% last week as customer orders surged in advance of the expiration of tax credits on solar roof panels, set to expire in July. The stock rose as much as 41% on Wednesday, its biggest move in five years. Of course, prior to Tuesday, they were down more than 40% in the year leading up to its earnings release. The company talked up its numbers and forecast, but there was little discussion of what happens AFTER July. Investors should, perhaps, look up 'pull forward' sales. 
Galaxy Digital Inc. GLXY 
Timing is everything. GLXY shares fell 30% last week as it scheduled its earnings release on February 3rd. We are sure that date looked fine to management a few weeks ago. How were they supposed to know that the cryptocurrency market was going to collapse on the same day they released their results, which, unfortunately, showed a loss of nearly $500 million? The loss reflects the mark to market of their digital holdings. Shares bounced a bit on Friday.
Timing is everything. GLXY shares fell 30% last week as it scheduled its earnings release on February 3rd. We are sure that date looked fine to management a few weeks ago. How were they supposed to know that the cryptocurrency market was going to collapse on the same day they released their results, which, unfortunately, showed a loss of nearly $500 million? The loss reflects the mark to market of their digital holdings. Shares bounced a bit on Friday. 
Fluence Energy FLNC Energy storage sounds cool, especially when 'overlain with an AI-enabled IQ platform to optimize renewable and third-party storage assets', which is how Fluence is described on Bloomberg. But being cool did not help last week, with FLNC shares down 37% as the company reported an EBITDA loss that was much worse than expected But, even with the giant loss, shareholders are only down 1.7% in 2026 and are still up 55% in the past year. The 154% increase in first-quarter revenue no doubt has kept some investors interested.
Energy storage sounds cool, especially when 'overlain with an AI-enabled IQ platform to optimize renewable and third-party storage assets', which is how Fluence is described on Bloomberg. But being cool did not help last week, with FLNC shares down 37% as the company reported an EBITDA loss that was much worse than expected But, even with the giant loss, shareholders are only down 1.7% in 2026 and are still up 55% in the past year. The 154% increase in first-quarter revenue no doubt has kept some investors interested. 
Take Care,
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