What happened

Shares of Guardant Health (GH -0.16%) were jumping 11.7% higher as of 3:26 p.m. EST on Wednesday. The liquid biopsy leader didn't report any new developments. However, the major stock market indexes delivered big gains after former Vice President Joe Biden racked up multiple wins in the Democratic primaries on Tuesday, lifting most stocks. Guardant Health likely benefited more than most stocks because the sell-off of its shares on Monday appears to have been overdone.

So what

Growth stocks like Guardant Health tend to have more dramatic price swings when the overall market experiences significant moves. However, the company's prospects shouldn't be impacted all that much regardless of which candidate wins the Democratic nomination for president.

Test tube containing an image of DNA

Image source: Getty Images.

There's a good argument to be made that Guardant Health's shares fell too much on Monday after the company filed a shelf registration statement with the Securities and Exchange Commission (SEC). Although the filing paves the way for Guardant Health to raise more cash in the future through a stock offering, the company shouldn't need any additional money to fund operations anytime soon. Guardant Health's cash position stood at $791.6 million as of Dec. 31, 2019. 

Now what

Guardant Health's business should keep on booming. The company projects that its revenue will grow by around 31% in 2020, driven by sales of its Guardant360 and GuardantOmni liquid biopsy products. This growth could accelerate in the future, though, if Guardant Health gets a green light to market its Lunar-1 and Lunar-2 liquid biopsies for early detection of cancer and monitoring for cancer recurrence.