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Why Invitae Stock Is Falling Today

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

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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. 

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Stocks Mentioned

Invitae Stock Quote
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NVTA
$4.00 (14.14%) $0.49

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