Please ensure Javascript is enabled for purposes of website accessibility

Why Invitae Stock Is Falling Today

By Prosper Junior Bakiny - Feb 23, 2021 at 1:23PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The healthcare company is diving along with the market.

What happened?

Genetic testing specialist Invitae (NVTA 14.14%) isn't having a great start to the week. The company's shares fell by more than 10% on Monday, and on Tuesday, it is extending these losses. Invitae's stock was down by 8.4% as of 1:06 p.m. EST today, after falling by as much as 15.2% earlier in the day. There doesn't seem to be any company-specific news that is driving the company's shares down. Instead, Invitae is likely guilty of general stock market volatility.

So what

As of this writing, all three major U.S. stock market indexes are down. Invitae's shares are probably being dragged down along with the broader market. The company's stock has been on fire over the past year, soaring by 78.8%, and that's even after the sell-off it experienced over the past two days. By comparison, the S&P 500 is up by 15% in the same period. Investors' enthusiasm regarding Invitae's prospects seems to be cooling off slightly, and the company's fourth-quarter and full-year financial results may have played a role.

Woman standing in front of a board with question marks written all over it.

Image source: Getty Images.

Invitae's Q4 revenue soared by 55.1% year over year to $100.4 million, topping the consensus analyst estimate of $98.4 million. However, the company's adjusted net loss per share came in at $0.63, below the $0.55 adjusted loss per share analysts expected.

Now what

Whether Invitae's losses on the stock market today are due to volatility or lingering concerns regarding its fourth-quarter earnings miss, long-term investors need not be worried about day-to-day changes in the prices of securities. Instead, it is best to focus on the prospects of the company in question. In that spirit, Invitae still has a lot of room to grow its revenue and earnings as the healthcare company keeps increasing its revenue while adding more genetic tests to its arsenal. Today's sell-off may actually represent an excellent buying opportunity for investors. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Invitae Stock Quote
$4.00 (14.14%) $0.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.