What Happened?
Shares of biotech company 10x Genomics (NASDAQ: TXG) jumped 1.5% in the afternoon session after it announced a strategic partnership with SPT Labtech, a laboratory automation company, to provide automated workflows for single-cell research.
The collaboration allowed scientists to more easily scale experiments on 10x's Chromium Single Cell platform by using SPT Labtech's firefly® liquid handling system. This integration provided researchers with optimized, ready-to-run methods developed by both companies. The new protocols were designed to streamline research workflows, improving efficiency, consistency, and the ability to conduct larger-scale studies. The companies also noted plans for future expansion to include 10x's Visium Spatial platform. This partnership built on 10x's previous acquisition of Scale Biosciences, which already had a partnership with SPT Labtech.
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What Is The Market Telling Us
10x Genomics’s shares are extremely volatile and have had 45 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 previous big move we wrote about was 5 days ago when the stock dropped 3.5% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
10x Genomics is down 14.8% since the beginning of the year, and at $12.09 per share, it is trading 30.3% below its 52-week high of $17.34 from November 2024. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $74.65.
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