What Happened?
Shares of genomics company Pacific Biosciences of California (NASDAQ: PACB) jumped 7.4% in the afternoon session after the company announced it had joined the 1000 Genomes Long Read Sequencing Project, a major global human genomics initiative.
The life sciences technology company said it would contribute its advanced long-read sequencing technology to the project. In collaboration with researchers at the University of Washington and Johns Hopkins University, PacBio's Kinnex RNA kits and Revio sequencing platform will be used to generate detailed data on gene expression from approximately 1,000 samples. This participation was seen as a significant development, as it placed PacBio's highly accurate HiFi sequencing technology at the center of a foundational research effort. The project aimed to create a large, open-access resource for the global genetics community, which could help accelerate research into human health and disease. Investors reacted positively to the news, which positioned PacBio to potentially expand its market opportunities and drive broader adoption of its sequencing solutions.
After the initial pop the shares cooled down to $1.70, up 4% from previous close.
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What Is The Market Telling Us
PacBio’s shares are extremely volatile and have had 88 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 24.7% as markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward. However, Trump was quick to note that China was not part of the pause. Instead, he prepared to raise tariffs on Chinese goods to 125% after China announced retaliatory tariffs on US imports. This tough stance on China stood in sharp contrast to the softer tone toward others. In a week marked by growing uncertainty, this news eased some of the pressure. The questions remain whether we are out of the woods and can sustain the rally or not.
PacBio is down 5.8% since the beginning of the year, and at $1.70 per share, it is trading 36% below its 52-week high of $2.65 from November 2024. Investors who bought $1,000 worth of PacBio’s shares 5 years ago would now be looking at an investment worth $432.40.
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