Is Invitae in Danger of Running Out of Money?
Invitae (NYSE: NVTA) is a genetic testing company that's in its early growth stages, so shareholders should expect to take on some risk with a stock like this. But in Invitae's case, the company is burning through an excessive amount of money, and the risk could be too significant for investors to be willing to accept.
Is this a business that's in trouble and could run out of money? Or could it be a good long-term investment for growth investors to buy and hold?
A big problem with Invitae is that it is burning through lots of cash. Over the trailing 12 months, the company has used up $587 million in cash just from its day-to-day operating activities. Its investing activities have used up an additional $126 million during that stretch. With just $586 million in cash and marketable securities, Invitae doesn't have the room to absorb that level of cash outflow for long.
Source Fool.com
