What Happened?
Shares of genetic testing company Myriad Genetics (NASDAQ: MYGN) jumped 0.4% in the afternoon session after the company shared a positive outlook, projecting significant revenue from its hereditary cancer testing division and outlining its growth targets for the coming years. Myriad Genetics projected approximately $370 million in revenue from this testing segment for the year, accounting for about 45% of its total sales. The company also targeted a growth rate in the high single-digits to low double-digits over the next three to five years. To help achieve these goals, it was supported by a $35 million investment aimed at enhancing its commercial capabilities.
After the initial pop the shares cooled down to $6.64, up 0.1% from previous close.
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What Is The Market Telling Us
Myriad Genetics’s shares are extremely volatile and have had 41 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 8 days ago when the stock gained 3% on the news that the market experienced a sharp sector rotation, as investors fled growth-oriented technology stocks and piled into value-oriented names amid growing valuation concerns. This divergence was stark: the tech-heavy Nasdaq struggled, losing 0.2%, while the Dow rallied. This shift away from tech was triggered by a series of negative catalysts in the AI sector. AI cloud provider CoreWeave slid on disappointing guidance, while chip darling Nvidia pulled back after SoftBank sold its stake. This "hurt the AI trade," dragging down related names like Micron and Oracle. As capital left tech, it sought safety in "higher quality" defensive names. Health care giants like Merck, Amgen, and Johnson & Johnson saw significant buying, boosting the Dow.
Myriad Genetics is down 50.9% since the beginning of the year, and at $6.64 per share, it is trading 60.2% below its 52-week high of $16.69 from December 2024. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at an investment worth $385.98.
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