While it's natural to track share prices of your favorite stocks, it's important to remember that price alone never indicates a good or bad stock. Shares of Fulgent Genetics (FLGT 0.91%) are down nearly 18% over the past week
This is despite the fact that the stock reported excellent third-quarter earnings on Nov. 9 with its core revenue up nearly 300% year over year and total revenue up 124% from the year-ago period.
In this segment of Backstage Pass, recorded on Nov. 5, Fool contributors Toby Bordelon and Rachel Warren respond to a viewer's question about the stock and its volatile share price lately.
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Toby Bordelon: We have another question that's got a lot of votes from Mike. He asked, Fulgent Genetics was down 10% today and he wants to know if that was due to the announcement of research data on the COVID pill from Pfizer (PFE 1.38%) which I guess came out today. Do you have any thoughts on this, Rachel? I know you follow the healthcare industry a little bit.
Rachel Warren: Yeah. I like Fulgent Genetics, I think they're a great company. I think it's possible. I was looking at, for example, Moderna (MRNA 1.78%) stock. Moderna was down about 17% today, which is a bit of a jump, but it's just one day.
I think that's very much possible, although just for context, shares of Fulgent have been falling a little bit recently. The company is strong, the business is strong, it rose to the forefront of investors' attention I think because of the variety of COVID-19 tests released.
But it does have a really robust portfolio of other tests that are contributing more and more to its overall revenue and driving really strong balance sheet growth. I think it could be a range of factors.
I think there's been an overall concern among some investors about a long-term need for some of these tests as you have more therapeutics introduced. Then of course with the news today from Pfizer. I would say just at first glance because I've been reading up about this, it's a combination of things.
But at the moment, it doesn't change my personal take on this company. I really like this company. I believe it reports its third-quarter earnings next week. I'll keep an eye on those to see what happens after that.