One biotech’s 80% single-day plunge: A case study for investors

02.24.2022 - By Wall Street Unplugged - What's Really Moving These Markets

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Biotech Kodiak Sciences (KOD) plunged 80% in one day after a major drug trial setback.  In today’s episode, we focus on why this company captivated Wall Street… and what investors can learn from the selloff. [1:45] I’ve been following Kodiak for a while… We once bought and sold it for a gain in . Even recently, the Baker Brothers—some of the best biotech investors—were buying heavily. [3:40] But this week… the Phase 3 study for its most exciting drug missed expectations. [7:50] The situation is a strong example of why investors must pay attention to expectations—both high and low… and be willing to adjust as facts change. [11:00] When expectations are leaning either bullish or bearish, consider the contrarian trade… It’s how you make the biggest gains as an investor. [26:00] Enjoyed this episode? Get Wall Street Unplugged delivered FREE to your inbox every Wednesday: Wall Street Unplugged podcast is available at: --: -- : -- : : :. : :

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