Is It Too Late to Buy Invitae Stock?
Invitae (NYSE: NVTA) investors have lost 84.6% of their money over the last three years, and there might not be any good news coming for a while. Amid an ambitious restructuring plan that'll see the company slash its staff and shake up the management team, the company currently only anticipates having the cash to survive through the end of 2024.
But despite its seemingly dire straits, could it still be too late for people to buy its stock? It's more likely than it sounds, so let's investigate further.
The most obvious reason why it might be too late to invest in Invitae is that it's blatantly under pressure, and conditions won't improve anytime soon. It hasn't been profitable on a quarterly basis for the last five years, and its quarterly gross margin has barely budged while its debt load has ballooned to over $1.7 billion. Given that it sells its genetic tests directly to consumers and also to healthcare providers, reaching profitability could be a matter of hiking prices, except that could also destroy demand in turn. Still, the fact that the company's revenue has continued to grow while it hemorrhages money isn't much of a consolation to shareholders, nor is there any way that it might grow its way out of being unprofitable and needing more money to continue operating.
Source Fool.com
