23andMe Holding Co. (ME)
23andMe Holding Co. is a consumer genetics testing company that provides genetic reports and develops novel therapies. The company operates through Consumer & Research Services and Therapeutics segments, focusing on personalized health insights and drug discovery.
Company Overview
23andMe pioneers personalized healthcare through consumer genetics and therapeutics, offering unique insights into ancestry, health risks, and drug development, but faces challenges in profitability and market competition, making it a high-risk, high-reward investment in the evolving genomics landscape.
Investment Thesis
Investing in 23andMe presents a speculative opportunity, driven by its unique position in the intersection of consumer genetics and drug discovery. The company's extensive database of genetic information offers potential for identifying novel drug targets and developing personalized therapies. However, the company's negative profit margin of -134.5% and a small market cap of $0.02B indicate substantial financial risk. The collaboration with GlaxoSmithKline represents a significant catalyst, but the success of therapeutic development remains uncertain. A positive investment outcome hinges on the company's ability to monetize its genetic data through successful drug development and strategic partnerships, while addressing its profitability challenges. Investors should closely monitor the progress of its therapeutics pipeline and its ability to achieve sustainable revenue growth in the consumer services segment.
Key Highlights
- Gross Margin of 53.3% indicates a strong potential for profitability if operating expenses are managed effectively.
- Collaboration with GlaxoSmithKline provides a pathway for drug development and potential revenue generation through licensing agreements.
- Consumer & Research Services segment offers a recurring revenue stream through genetic testing kits and reports.
- Therapeutics segment focuses on high-value therapeutic areas such as oncology, respiratory, and cardiovascular diseases.
- Market Cap of $0.02B suggests the company is undervalued if its therapeutics pipeline yields successful drug candidates.
Competitors
Strengths
- Large and growing genetic database.
- Direct-to-consumer business model.
- Strong brand recognition.
- Potential for drug discovery and development.
Weaknesses
- Negative profit margin.
- High operating expenses.
- Dependence on consumer spending.
- Regulatory and ethical concerns regarding data privacy.
Catalysts
- Ongoing: Progress in clinical trials for therapeutic candidates.
- Ongoing: Expansion of partnerships with pharmaceutical companies.
- Upcoming: Potential regulatory approvals for new genetic tests.
- Ongoing: Increased consumer adoption of genetic testing services.
- Ongoing: Data monetization through research collaborations.
Risks
- Ongoing: Negative profit margin and financial instability.
- Potential: Failure of clinical trials for drug candidates.
- Potential: Regulatory changes and increased scrutiny.
- Potential: Data breaches and privacy concerns.
- Ongoing: Competition from other genetic testing companies.
Growth Opportunities
- Expanding Therapeutics Pipeline: 23andMe can leverage its extensive genetic database to identify and develop novel therapies, particularly in oncology, respiratory, and cardiovascular diseases. The market for these therapies is substantial, with oncology alone projected to reach hundreds of billions of dollars in the coming years. Success in clinical trials and subsequent commercialization of these therapies could significantly increase the company's value. Timeline: Ongoing, with potential for significant breakthroughs within the next 3-5 years.
- Strategic Partnerships and Licensing: 23andMe can pursue additional partnerships with pharmaceutical companies to out-license its intellectual property and drug candidates. This strategy provides a non-dilutive source of funding and allows the company to focus on its core competencies. The market for drug licensing is competitive, but 23andMe's unique genetic data offers a competitive advantage. Timeline: Ongoing, with potential for new partnerships in the next 1-2 years.
- Personalized Medicine and Healthcare: 23andMe can expand its offerings in personalized medicine by providing more tailored health recommendations based on individual genetic profiles. This includes pharmacogenomics, which helps determine the optimal drug and dosage for a patient based on their genetic makeup. The market for personalized medicine is growing rapidly, driven by advancements in genomics and data analytics. Timeline: Ongoing, with gradual expansion of personalized medicine services.
- International Expansion: 23andMe can expand its consumer genetics testing services to new international markets. This would increase its customer base and provide access to diverse genetic data. However, international expansion requires navigating different regulatory environments and cultural sensitivities. Timeline: Potential expansion to select markets within the next 2-3 years.
- Data Monetization and Research Collaborations: 23andMe can further monetize its vast genetic database through research collaborations with academic institutions and pharmaceutical companies. This provides a valuable source of revenue and contributes to scientific advancements. However, data privacy and ethical considerations must be carefully addressed. Timeline: Ongoing, with continuous exploration of research collaboration opportunities.
Opportunities
- Expanding therapeutics pipeline.
- Strategic partnerships and licensing agreements.
- Personalized medicine and healthcare solutions.
- International expansion.
Threats
- Competition from other genetic testing companies.
- Regulatory changes and increased scrutiny.
- Data breaches and privacy concerns.
- Failure of clinical trials for drug candidates.
Competitive Advantages
- Proprietary Genetic Database: 23andMe has a vast and growing database of genetic information, which is a valuable asset for drug discovery and personalized medicine.
- Direct-to-Consumer Model: The company's direct-to-consumer model provides a competitive advantage in reaching a large customer base and collecting genetic data.
- Brand Recognition: 23andMe has established a strong brand reputation in the consumer genetics testing market.
- Therapeutics Pipeline: The company's pipeline of novel therapies represents a potential source of future revenue and value.
About
Founded in 2006 and headquartered in South San Francisco, California, 23andMe Holding Co. has emerged as a prominent player in the consumer genetics testing market. The company operates through two primary segments: Consumer & Research Services and Therapeutics. The Consumer & Research Services segment provides customers with a suite of genetic reports derived from saliva samples. These reports offer insights into ancestral origins, potential health risks, and carrier status for certain genetic conditions. This segment leverages the 'spit kit' model, making genetic information accessible directly to consumers. The Therapeutics segment focuses on the discovery and development of novel therapies across various therapeutic areas, including oncology, respiratory, and cardiovascular diseases. This segment also explores out-licensing opportunities for intellectual property related to identified drug targets and drug candidates under clinical development. 23andMe has a collaboration agreement with GlaxoSmithKline Intellectual Property (No.3) Limited, aimed at leveraging genetic insights to validate, develop, and commercialize drugs. The company's evolution reflects a strategic shift from solely consumer-facing genetic testing to integrating therapeutic development, aiming to capitalize on its vast genetic database for drug discovery.
What They Do
- Provides direct-to-consumer genetic testing kits.
- Offers genetic reports on ancestry, health risks, and carrier status.
- Develops novel therapies for various diseases, including oncology.
- Out-licenses intellectual property related to drug targets.
- Collaborates with pharmaceutical companies to validate and commercialize drugs.
- Leverages genetic insights to advance personalized medicine.
Business Model
- Sells genetic testing kits and reports directly to consumers.
- Generates revenue from research collaborations and data licensing.
- Develops and commercializes novel therapies.
- Out-licenses intellectual property to pharmaceutical companies.
Industry Context
23andMe operates within the rapidly evolving medical diagnostics and research industry. The market for genetic testing is expanding, driven by increasing consumer awareness and decreasing costs of sequencing. Competition includes companies like Agilent Technologies (A), Bio-Rad Laboratories (BIOC), Danaher Corporation (DHR), DermTech (DMTK), and Exact Sciences Corporation (GENE), which offer various genetic testing services and diagnostic solutions. 23andMe differentiates itself through its direct-to-consumer model and its focus on leveraging genetic data for drug discovery. The industry faces regulatory scrutiny and ethical considerations regarding data privacy and genetic information usage.
Key Customers
- Individual consumers seeking information about their ancestry and health.
- Pharmaceutical companies looking for drug targets and genetic insights.
- Academic institutions conducting genetic research.
- Healthcare providers interested in personalized medicine solutions.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2025 | $25M | -$24M | $-0.87 |
| Q1 2025 | $45M | -$99M | $-3.85 |
| Q4 2024 | $60M | -$53M | $-2.01 |
| Q3 2024 | $44M | -$59M | $-2.32 |
Source: Company filings
Chart & Info
Price Chart
23andMe Holding Co. (ME) stock price: $0.61 (+0.61, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's long-term potential, indicating that executives believe in a positive outlook.
- •Community sentiment has shifted positively, with discussions highlighting the potential of genetic testing and personalized medicine.
- •Recent partnerships and collaborations in the biotech space have generated excitement, positioning 23andMe as a key player in health innovation.
- •The growing interest in health data and consumer genomics has sparked renewed investor enthusiasm, reflecting a bullish trend in public perception.
Why Bear
- •Concerns over regulatory hurdles in the genetic testing industry have dampened enthusiasm, leading to skepticism about growth prospects.
- •Recent social sentiment has shown mixed feelings, with some community members questioning the sustainability of the business model.
- •Increased competition in the genetic and health data market may pose challenges, as other companies are also vying for market share.
- •Market perception remains cautious, with some investors fearing that the novelty of genetic testing may not translate to long-term profitability.
Latest News
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Earnings Scheduled For November 12, 2024
benzinga · Nov 12, 2024
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Stocks That Hit 52-Week Lows On Friday
benzinga · Jun 10, 2022
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Stocks That Hit 52-Week Lows On Friday
benzinga · Mar 4, 2022
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Earnings Scheduled For February 10, 2022
benzinga · Feb 10, 2022
Technical Analysis
Rationale
AI-generated technical analysis for ME including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ME.
Make a Prediction
Set your price target for 23andMe Holding Co. (ME), choose a timeframe, and track your prediction accuracy.
Current price: $0.61
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ME.
Price Targets
Wall Street price target analysis for ME.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 5/100
Gross margin data is currently unavailable for this company.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ME's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does 23andMe Holding Co. do?
23andMe Holding Co. operates as a consumer genetics testing company, offering a suite of genetic reports to individuals. These reports provide insights into ancestry, health risks, and carrier status for certain genetic conditions. Additionally, the company is involved in the discovery and development of novel therapies across various therapeutic areas, leveraging its extensive genetic database. 23andMe aims to bridge the gap between consumer genetics and pharmaceutical innovation, positioning itself as a key player in personalized medicine and drug discovery.
Is ME stock a good buy?
ME stock presents a high-risk, high-reward investment opportunity. The company's negative profit margin and small market cap indicate significant financial challenges. However, its unique genetic database and potential for drug discovery offer substantial upside. Investors should carefully consider the company's financial position, the progress of its therapeutics pipeline, and the competitive landscape before investing. A positive investment outcome depends on the company's ability to achieve profitability and successfully commercialize its therapeutic candidates.
What are the main risks for ME?
The main risks for 23andMe include its negative profit margin and financial instability, which raise concerns about its long-term viability. Failure of clinical trials for its drug candidates would significantly impact its growth prospects. Regulatory changes and increased scrutiny regarding data privacy could also pose challenges. Competition from other genetic testing companies and the potential for data breaches are additional risks that investors should consider. These factors contribute to the overall risk profile of ME stock.
Is ME a good stock to buy?
Whether ME is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the ME MoonshotScore?
The MoonshotScore for ME is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is ME data updated?
ME stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to ME is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for ME?
Growth catalysts for 23andMe Holding Co. (ME) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes 23andMe Holding Co.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are ME's main competitors?
23andMe Holding Co. (ME) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether ME has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about ME?
Wall Street analyst coverage for ME includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is ME's market cap?
Market capitalization (market cap) for ME is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows ME's current market cap alongside enterprise value and other valuation metrics.
How has ME stock performed recently?
ME's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing ME's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in ME?
Key risk categories for ME include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures ME's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling ME?
Insider trading activity for ME tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is ME a good stock for beginners?
23andMe Holding Co. (ME) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ME for first-time investors?
Every stock carries risk, including 23andMe Holding Co. (ME). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ME.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- The analysis is based on publicly available information and may be subject to change.
- The investment thesis is speculative and involves significant risks.
- The company's financial performance and future prospects are uncertain.