What happened
Shares of Invitae (NVTA -91.58%) were tumbling 10.9% as of 3:11 p.m. EDT on Wednesday. There weren't any new developments that explained the decline. Instead, the stock appeared to be dragged down in a broader sell-off of growth stocks.
So what
It's best to ignore short-term volatility, especially when there isn't a clear underlying cause. Investors are better off focusing on Invitae's long-term prospects. And those prospects still look pretty good.
Image source: Getty Images.
The medical genetics company appears to have recovered from a temporary growth blip caused by the pandemic. Revenue and testing volume roared back in the fourth quarter of 2020. Key acquisitions of ArcherDX and One Codex have enabled Invitae to expand its product offerings.
Invitae continues to estimate its total addressable market at more than $150 billion. The company has an especially big opportunity in providing genetic testing to individuals 65 and older with significant potential for growth in areas such as cancer therapy selection.
Now what
Don't be surprised if the healthcare stock rebounds quickly. Invitae's partnerships with biopharmaceutical companies could especially make a difference in the not-too-distant future. The company signed 89 new deals with biopharma companies last year, including 30 in the fourth quarter alone.
