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Our comments this week are mostly questions. Day-to-day gyrations make sense on the surface. Yesterday, the market surged on news of China easing its monetary policy combined with a growing sense of relief that the Omicron variant is milder than previously understood. But in the wider context, the market’s position and trend makes less sense.

I just wanted to drop a quick note about what we’re seeing in our portfolio; other than that the high-level action is mostly in line with the broad market (i.e., across the board weak).

Avalara (AVLR) reported Q3 results yesterday that surpassed expectations with revenue up 42% to $181.2 million (versus $170.3 million consensus). Adjusted EPS of -$0.03 beat by $0.04. Several recent acquisitions contributed meaningful growth in the quarter ($16.2 million in revenue) which, if taken out, means the organic revenue growth rate was closer to 29%.

Despite another dip in the Nasdaq today higher growth stocks have mostly come up off of last week’s lows as early indications suggest the Omicron variant can be held at bay with vaccinations (especially booster shots).

Kornit Digital (KRNT) reported Q3 results that missed on the top line and matched consensus on the bottom line. Net of the $7.9 million impact from warrants, revenue was up 51% to $86.7 million ($89.2 million expected) while adjusted EPS of $0.27 was in line.

We continue to watch in amazement the values that the market puts on electric vehicle makers, with the most recent example of Rivian Automotive (RIVN). Since its IPO at $78/share, RIVN shares have doubled, making the EV company’s roughly 900 million shares worth a total of about $144 billion. This makes it the #3 most valuable car company in the world.

Shares of Arena (ARNA) are up over 80% today to around 92 on news that Pfizer (PFE) is seeking to acquire the company for $6.7 billion in cash. The implied takeout price is 100 a share.

General Motors has made a remarkable transition from bankruptcy in 2009 to a highly-profitable and innovative contender in the rapidly changing global auto industry, driven by CEO Mary Barra.

The big recent developments since I wrote last Thursday are the rise in Covid cases in Europe, and that Jerome Powell got the nod for another term leading the Fed.

Monday’s big, sharp market pullback was shocking to some investors, and scary enough to cause many to sell stocks in the fear that the correction would go deeper. It certainly might—the September/October period often brings major corrections—and maybe it should, though should is a word that I try to avoid when writing about the market.

The S&P 500 is now within 1% of the all time high. It could even make a new high today. The index has rallied 54% since the lows of March. What pandemic?