What happened

Shares of genetic data healthcare company 23andMe (ME 11.95%) jumped higher on Monday morning, as did many other beaten-down stocks. By noon ET, 23andMe stock was up 16% and trading volume was nearly double its average, even though there were still four hours left in the trading day. It seems the market is willing to take a bet on this stock before the company reports financial results today after the market closes.

So what

23andMe is scheduled to report financial results for the first quarter of its fiscal 2023 today after the market closes, followed by a conference call at 4:30 p.m. ET. The stock has plummeted so far in 2022, in part due to weak guidance for fiscal 2023.

For fiscal 2023, 23andMe is guiding for revenue of $260 million to $280 million. For perspective, it generated $272 million in fiscal 2022. Therefore, this guidance implies flat revenue growth. And this guidance was far below the $317 million it guided for when it went public, and also below analyst expectations of about $340 million.

This is why 23andMe stock is down about 75% from its all-time high.

Now what

23andMe also guided for a net loss of up to $370 million in fiscal 2023. The company is well funded with $553 million in cash, so that's encouraging. Moreover, investors often dismiss steep losses for growth stocks. But that's the problem for 23andMe -- it's not growing.

23andMe's plan is ambitious: take the data from its genetic test kits to create personalized healthcare. And it's only natural that a plan of such importance will take time. But 23andMe will need to show investors more positive developments in its personalized-healthcare narrative when it reports financial results today if it expects to sustain today's gains long-term.