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23andMe Stock: Continued Drug-Development Progress Can Deliver Long-Term Gains

Oct. 03, 2021 3:19 PM ET23andMe Holding Co. (ME)16 Comments


  • 23andMe is well known for their services around DNA testing, ancestry mapping, and genetic data.
  • By collaborating with GlaxoSmithKline, the companies can better use 23andMe's 11.6 million genotyped customer database to develop beneficial drugs.
  • Long-term investors should be focused more around the potential drug discovery revenue rather than the short-term volatility and high R&D expenses.

The new 23andme headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

23andMe (NASDAQ:ME) recently went public through a SPAC vehicle and despite the stock currently trading below the $10 level, I believe the long-term optionality remains very strong. The global pandemic has potentially accelerated consumer demand




This article was written by

Individual investor with hands-on experience in the equity markets. Largely focusing on Tech companies or major mispricings in the market.

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Comments (16)

ME moved over $11 recently on no news that I can glean, and it makes you wonder if some big hedge funds or ETFs bought shares. Since I am in at $8 or so that is a nice 37% jump in a few days. This will be an interesting ride.
ME is a lottery ticket and this puppy will go above $10 with some positive news from all those potentials.

Looks like low $7 is the near term support and might go down to $5 on market correction.
crazylikebudfox profile picture
Ever thought about the "quality" of ME's genetic data? It's often known as sample bias. In this case, the data is heavily skewed towards white people in north america. That's a problem.
@crazylikebudfox Then there's the CEO. Ethically challenged would be putting it kindly. Best bud and die hard defender of Elizabeth Holmes, who, like Holmes, got outed by the FDA on some pretty sleazy misrepresentations. But as she's said in as many words, "hey, everybody in Silicon Valley does it, so buzz off, if we happen to get rich separating people from their money with over-hyped and knowingly overstated claims, so be it. Caveat emptor."
@Deep Dive Contrarian Source for this? I've read her interviews and that doesn't seem to be what she's saying.
@Phoxx You'll have to make more than a cursory effort looking at the last 6 months. If you haven't found it, you haven't looked very hard.
Totally agree and you have spelled out the opportunity and risks. Potential is enormous but it will take a while to play out. Wonder if you think as I do that the floor for now is below $9 at around $8.50 and that range is a safe place to put some money on this spec. buy.

The CEO is wicked smart and if you listen to her it’s clear she has a vision and the leadership to move ME ahead to achieve its goals. It’s my main spec holding but only maybe 4% of my modest portfolio. Keeping fingers crossed.
@RealRural floor can be anything if interest rates go up. even 1 $ (e.g. Gamestop traded below cash value at one time). If you hold for 10 years, who really cares though. The more computing power the more valueable this data.
@RealRural Had to laugh at your characterization of the CEO. Wicked smart, or just plain wicked? You might want to look into the history of the company and her own history. She's slippery enough to have gotten away with the kinds of things that have derailed others. Adept at playing the "they're just picking on me because I'm a woman" card. She's Elizabeth Holmes in sheep's clothing. Trust your capital with people who are ethically challenged and you can't complain when you find out they "sold you" and left you holding the bag.
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