These 2 stocks skyrocketed on Monday after hours

Monday brought another round of solid gains to the stock market. The excitement over the potential success of COVID-19 vaccination efforts and economic strength has helped market players dramatically increase the market’s major indices. The Dow Jones Industrial Average (DJINDICES: ^ DJI), S&P 500 (SNPINDEX: ^ GSPC), and Nasdaq Composite (NASDAQINDEX: ^ IXIC) all were higher, with the Nasdaq finishing at a record high and the S&P below a fraction of a point.

Data source: Yahoo! Finance.

As if the regular trading session for the day weren’t enough, some stocks continued to perform well outside of normal hours. Palo Alto Networks (NYSE: PANW) and Cara Therapeutics (NASDAQ: FACE) both rose by double-digit percentages on Monday night, and below, we’ll get into the details.

Palo Alto has a great ratio

Palo Alto Networks shares jumped more than 10% on Monday night after hours. The cybersecurity specialist’s quarterly results were strong and the company was optimistic about its future.

The figures from Palo Alto were very encouraging. The company’s fiscal fourth quarter revenue increased 28% compared to the same period a year earlier. Adjusted net income was up 12% year-over-year, with adjusted earnings per share $ 1.60 higher than many investors had expected.

Image source: Getty Images.

Palo Alto has worked hard to take full advantage of the digital transformation that businesses have gone through over the past year and a half. In particular, Palo Alto’s security goal has been to ensure that companies with employees working from home do not inadvertently put their digital assets at risk of cybersecurity.

At the same time, Palo Alto has done a great job of combining a commitment to the cloud with the recognition that many of its customers prefer on-premises cybersecurity facilities. This flexibility could continue to serve the company in the future.

Cara gets approval

Cara Therapeutics did even better, soaring nearly 25% after hours. After posting strong financial results earlier this month, the company announced a major victory over arguably its most important pipeline prospect.

He said the Food and Drug Administration had approved his Korsuva injection for use in dialysis patients with moderate to severe itchy skin associated with chronic kidney disease. The company had received priority review from the FDA and Phase 3 trials had demonstrated its effectiveness.

However, Cara will not get all the benefits of Korsuva’s endorsement. The company had accepted an exclusive license with Vifor Pharma, under which Cara derives 60% of profits from sales in the United States to clinics other than those operated by Fresenius medical care. An earlier agreement called for a 50/50 split for treatment at Fresenius dialysis clinics.

The next step for Cara is to make sure Medicare will reimburse Korsuva’s costs for patients. It might not happen until early 2022, but investors are wasting no time showing their excitement.