Invitae: Cathie Wood's Big Loss Can Be Your Big Gain

Summary

• Invitae is one of the worst-performing stocks in Cathie Wood's Genomic Revolution ETF, down over 90% from the highs of $56.60 set in December 2020.
• The stock has become so cheap it now trades at under half of the book value and roughly 2.4x sales, despite massive revenue growth over the last five years.
• While the growth story remains unprofitable, this is mainly due to increases in R&D spending, which should stabilize over time.
• Book value is around $12-13 per share and the stock is now trading at 52-week lows, basically for the cash the company has in the bank.
• It is not quite a net-net, as the company has debt. However, making a contrarian call on the company at this price could reward shareholders over the long term.

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Investment Thesis

Invitae Corporation (NVTA) is a biotechnology and medical genetics company which integrates genetic information into healthcare decision-making by clinicians. The company offers genetic tests for use in many clinical areas, including pediatrics, reproductive health, and oncology; the final

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