Can You Count on 23andMe Stock?
On June 16, special purpose acquisition company (SPAC) Virgin Group Acquisition completed its merger with consumer genetics company 23andMe (NASDAQ: ME). The deal funded the latter with $592 million in cash at a total enterprise valuation of $3.5 billion. Investors were enthusiastic about the agreement, with shares soaring by over 20% on the day of their trading debut.
That's quite the jump, considering 23andMe's management projects that its revenue will decline sharply over the next few years and not recover to 2019 levels until 2025. So what's behind the hype?
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Source Fool.com
