Pfizer Exit Tanks Sangamo Stock

Author

Adam Garcia
December 31, 2024

Good morning. It's the last day of the year, and today, we’ll look at news related to Sangamo, Meta, Fannie Mae, and Freddie Mac.

Emerging Player

A newly listed company is making waves after its $400 million IPO—and it’s already catching the eye of major Wall Street players.

Positioned to shake up a $90 billion industry, this under-the-radar stock is trading for less than $15, offering early investors a rare opportunity to get in on the ground floor.

Backed by prominent underwriters and primed for substantial growth, this could be one of the most compelling opportunities of the decade.

Futures 📈

What to Watch

  • S&P Case-Shiller Home Price Index (20 cities) (Nov): 9:00 a.m.

Gene Therapy

Sangamo Faces Setback as Pfizer Walks Away from Hemophilia Drug, Stock Plummets

Sangamo Therapeutics (SGMO) shares are nosediving by as much as 59% in early trading today after Pfizer (PFE) announced its decision to end their collaboration on a gene therapy for hemophilia A. The experimental therapy, giroctocogene fitelparvovec, had shown promise, achieving its goal in a pivotal late-stage trial.

Sangamo, which had anticipated U.S. and European regulatory filings in early 2025, expressed shock at Pfizer’s decision. The company is now exploring alternatives, including seeking a new development partner to keep the project on track.

Prior to Pfizer’s decision, Sangamo was poised to receive up to $220 million in milestone payments under the partnership. The company, already grappling with liquidity concerns, has seen its market value, previously near $500 million, significantly impacted by the announcement.

Pfizer, which is shifting its focus amid declining COVID-related product sales, cited “limited interest” in another gene therapy for hemophilia A as its reason for exiting the agreement. Despite this, Sangamo remains committed to advancing the therapy, even as BioMarin Pharmaceutical’s competing treatment has faced commercial challenges.

Pfizer’s shares are relatively stable in early trading, while Sangamo faces a critical juncture in securing the future of its flagship therapy.

Technology

Zuckerberg Sells $21.8M in Meta Stock Amid Strategic AI Investments

Mark Zuckerberg, CEO of Meta Platforms (NASDAQ: META), sold $21.8 million worth of stock on December 26, 2024, according to an SEC filing. The transactions were executed through CZI Holdings, LLC, and the Chan Zuckerberg Initiative Foundation under a pre-established Rule 10b5-1 trading plan.

The sales involved Meta’s Class A Common Stock, with prices ranging from $600.59 to $606.17 per share. CZI Holdings contributed approximately $13.8 million to the total, while the Chan Zuckerberg Initiative Foundation accounted for $7.8 million.

Despite these sales, Zuckerberg retains a significant stake in Meta, showcasing his commitment to the $1.5 trillion market cap company, which has delivered a 70% return over the past year.

This comes as Meta has received bullish evaluations from several analysts such as RBC Capital and Canaccord Genuity, citing growth in artificial intelligence investments and ad technology. Meanwhile, eMarketer projects Instagram to generate half of Meta’s U.S. ad revenue by 2025.

However, challenges persist, including a $264 million fine imposed on Meta’s Irish subsidiary for a data breach. Despite these hurdles, analysts remain optimistic about Meta's robust performance and continued growth trajectory.

Real Estate

Fannie Mae and Freddie Mac Shares Surge Amid Privatization Speculation

Investor Bill Ackman anticipates that President-elect Donald Trump will push to remove Fannie Mae and Freddie Mac from government conservatorship, potentially making them private entities once more. Ackman shared his prediction on social media on Monday, sparking a significant market reaction.

Shares of both Fannie Mae and Freddie Mac climbed more than 30% following his remarks. Ackman suggested the transition out of conservatorship could occur within two years, with the companies possibly going public by 2026.

Fannie Mae and Freddie Mac were established by Congress to promote homeownership by purchasing loans from private lenders and converting them into mortgage-backed securities. Despite their for-profit status, the companies have private shareholders.

During the 2008 housing market collapse, both entities incurred massive losses, prompting their placement into conservatorship under the Federal Housing Finance Agency (FHFA) to prevent further economic fallout.

Ackman’s statement reignites discussions on the future of these mortgage giants, as their potential privatization could reshape the U.S. housing finance system. The White House has not yet commented on the matter.

AI

As Nvidia (NVDA) faces mounting challenges—from waning AI chip demand to antitrust investigations in China—a new player is emerging in the AI space, catching the attention of top investors and analysts.

This under-the-radar stock has already outperformed, hitting a 52-week high while NVDA stumbles.

Analysts are calling it the “invisible” AI stock poised to lead the next wave of innovation in 2025.

Even Wall Street legend Marc Chaikin and CNBC’s Jim Cramer have taken notice, with Chaikin naming it his #1 AI pick for 2025.

Don’t miss your chance to discover the name and ticker of this potential game-changer.

Movers and Shakers

Nxu, Inc. [NXU] - Last Close: $1.50

Nxu Inc. is a U.S.-based technology company specializing in energy storage and charging solutions.

Recently, the company completed a private placement deal, raising approximately $3 million through the sale of 6.8 million shares of its Class A Common Stock and associated warrants, which is causing its shares to rise in premarket today.

My Take: Investors should note that Nxu has reported losses in the last several quarters and is down -31% YTD, so it might be best to put this stock in wait-and-watch mode for now.

Verastem, Inc. [VSTM] - Last Close: $3.67

Verastem, Inc. is a biopharmaceutical company focused on developing cancer therapies.

In the third quarter of 2024, the company reported cash, cash equivalents, and short-term investments totaling $113.2 million. This provides an expected cash runway through the potential approval of its lead candidates in mid-2025.

Its shares are surging today in premarket trading after the U.S. FDA granted Priority Review for its experimental cancer therapy, avutometinib, in combination with defactinib.

My Take: With FDA Priority Review and a commercial launch planned for mid-2025, Verastem’s upside potential looks strong. Keep a close watch on this stock.

Cemtrex Inc. [CETX] - Last Close: $3.13

Cemtrex Inc. (CETX) is an advanced security technology and industrial services company. Its stock is up nearly 12% in premarket trading today following stronger-than-expected fourth-quarter sales of $18.10 million, surpassing the analyst consensus estimate of $16.39 million.

My Take: Despite this positive momentum, the stock has seen a 99% decline over the past six months. It is operating with negative margins and has a significant debt burden. Be careful if you wish to invest here.

Multi-Billion Dollar Industry

A select group of hedge funds, including Citadel, have quietly funneled over $125 million into a specific set of under-the-radar stocks. These aren’t household names, but they’re vital to industries that keep the world running.

One NYSE-listed company, in particular, stands out. Positioned to disrupt a critical $125 billion industry, it’s gaining momentum—and fast.

This is your chance to get ahead of the crowd and discover why Wall Street’s most powerful players are piling in.

Everything Else

  • China’s economy stabilized in 2024 and is set to hit its 5% growth target.

  • Singapore’s economy outperformed expectations with 4% growth in 2024.

  • PhonePe and Google Pay gained a two-year reprieve as the UPI market cap was postponed to 2026.

  • Do Kwon was handed over to U.S. law enforcement for the TerraUSD collapse investigation.

  • A colder-than-usual January forecast drives natural gas to a 52-week high.

  • Brent and WTI gained upon December manufacturing growth in China despite an annual drop.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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