Leveraged Cat
Equity Swing Trader
GeneDx's proposed Medicare cuts may have a much smaller direct impact than its selloff implies. Craig-Hallum estimates a $5.6 million annual hit, about 1% of exome and genome revenue. Q2 testing volume grew 32%, though revenue per test is declining; the proprietary rare-disease database and potential for AI-driven interpretation remain compelling. At $65, risk/reward might be attractive again, but reimbursement, profitability and execution remain risks. November 3 earnings should clarify. x.comÂ
GeneDx sold off on quarter-over-quarter pricing concerns even though it makes plenty of money, has ridiculous upside optionality and a solid chance of executing on it in the medium term. x.com x.comÂ
Genomics stocks appear to be benefiting from AI, with the ARK Genomic Revolution ETF clearly outpacing broader biotech. x.comÂ
Genomics is likely one of the most important long-term investment themes of the next decade, as AI speeds how life's information is read, understood and edited. Picks: Illumina in sequencing; Tempus AI for AI with genomic data; CRISPR Therapeutics and Beam in gene editing; uniQure (high risk, high payoff) and BioMarin (more certain) in gene therapy; Natera and Guardant Health in diagnostics; Twist Bioscience and Thermo Fisher in tools; Vertex and Alnylam in therapeutics. x.comÂ
The biotech and genomics boom is best owned broadly, because single biotech stocks are binary bets on trial results no analyst can handicap. One failed readout can halve a stock, as Novo Nordisk's lost market value on disappointing data showed. Owning blue-chip biotech and high-beta genomics as diversified baskets captures the funding rebound, the AI drug-discovery tailwind and the re-rating after years of deep bear market and a decisive breakout, without the single-molecule lottery. x.com x.com … Show more
NeoGenomics is firing on all cylinders at new all-time highs after a power gap on its recent earnings, in the strong genetic-testing corner of medical devices. It carries a rare A+ accumulation grade and a 97 relative-strength rating, and surfaced on a 'Power PEG' screen. x.comÂ
Bio-diagnostics offers the best value in the market, trading at lower price-to-sales multiples than software with low correlation to the AI trade. Its data-services businesses should become increasingly important because of AI. Tempus is the key name to understand, with smaller players including Exagen, Quanterix and GeneDx in the theme, and Caris Life Sciences just posted great results. x.com x.comÂ
Biotech is the next AI trade after compute and memory as the market shifts to the application layer, and the ARK Genomic Revolution ETF could top $100. Biotech runs on data, pattern recognition, R&D and precise manufacturing, all things AI excels at, helping firms like Twist, Tempus and CRISPR make drugs faster and reach profit sooner. The Trump administration is also opening the door to innovation and M&A. Winners are hard to pick, so a basket is easiest; expect volatility. x.com x.com x.com … Show more