3 Things About Invitae That Smart Investors Should Know
Invitae (NYSE: NVTA) is on a mission "to bring comprehensive genetic information to mainstream medicine to improve healthcare for billions." In medical terms, Invitae can help the roughly one in six people who have a medical condition with an underlying genetic component. In financial terms, Invitae has the potential to generate several hundred dollars annually from more than 2 billion people -- a staggering market opportunity of $4 trillion. Can Invitae achieve this? Smart investors will have to consider its growth trajectory and the catalysts that lie ahead.
Cathie Wood of ARK Investment Management has described Invitae as one of the most under-appreciated companies in her ARK Genomic Revolution ETF. In part, that lack of appreciation is not based on market opportunity but the time and cost to reach the end goal. More than 10 years after its founding, Invitae recorded 2020 revenue of just $280 million and posted a net loss of $602 million. In January, Invitae raised $431 million in equity financing and in April it raised an additional $1.15 billion in convertible debt. That cash infusion will help Invitae continue the mission, but it hasn't put investors in the best of moods. The stock is down 45% from its 52-week high.
Source Fool.com
