Well, so much for "Sell in May and Go Away" as stock markets hit multiple records again last week.

Here are the big movers for the week: 

With a 98% gain on the week, you would think that Fluence is a datacentre or AI stock. Nope, it is an energy storage company. It also reported first-quarter earnings, and revenue missed estimates. So why the gain in its stock? Well, despite not being in the data centre business, Fluence won two energy storage contracts with two separate hyperscalers. Since "everyone" knows that energy is the next bottleneck to AI success, investors have been looking for new ways to play this theme. FLNC thus came out with the exact right news at the exact right time. 

 

So, the Globe & Mail used to publish its 'Stars and Dogs' feature, which is where we copied 'Rockets and Duds'. We do not know if Datadog ever made it into the "Dogs" column, but we do know that this week it made it into the "Rockets" category, with a 42% gain last week. Strong earnings and guidance helped crush the fear that AI is going to destroy all software companies. 

 

Speaking of Rockets, how could we NOT include a company with Rocket right in its corporate name in our Rocket category this week. Rocketlab, run by a guy who used to build rockets when he was 13 years old, 'rocketed', 34% higher on news of a beat-and-raise quarter, a new acquisition, and a record backlog. As investors anticipate the SpaceX IPO they are looking for space alternatives, and RKLB fits nicely. It is now a $66 billion company, up 414% in the past year. 

 

Doctor, get that heart transplant, STAT! TMDX shares needed a defibrillation after ithe stock's 32% plunge last week. The company, which uses a proprietary method to improve the transportation of organs destined for implants into patients, fell on very weak results and guidance. The problem? TMDX owns a fleet of 21 planes to assist in its transplant operations. The Iran War of course has resulted in higher costs, which has squeezed margins. Investors in TMDX might need to check themselves into emergency at this rate. 

 

It was not that long ago that XNDU shares were on our Rocket list. But alas, investors learned the downside of SPACs last week, with the stock down 56%. A SPAC is a special purpose acquisition vehicle, and this is how XNDU recently went public. However, after a certain waiting period, investors who bought SPAC shares were allowed to sell their shares.  XNDU thus registered 293 million shares last week, and most of those were bought at $10 per share. The stock, prior to the plunge, was as high as $57. The massive wall of now-sellable shares crushed the rally in the stock.

 

Missed last week's Rockets and Duds?