What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). fell 8.3% in the afternoon session after the release of a key inflation report revealed prices paid to U.S. producers rose more than anticipated in January.
The Producer Price Index (PPI), which measures inflation before it reaches consumers, increased by 0.5% last month, surpassing economists' forecasts of a 0.3% rise. This report, indicating persistent inflationary pressures within the economy, sparked concerns among investors. The data suggests that the Federal Reserve might delay potential interest rate cuts that the market had been anticipating. The prospect of higher interest rates for a longer period can negatively affect corporate valuations and borrowing costs, leading to a broad market downturn that is impacting various sectors, including healthcare and medical devices.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Natera? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Natera’s shares are somewhat volatile and have had 13 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 7 months ago when the stock gained 11.6% on the news that it reported strong second-quarter 2025 financial results, including a significant revenue beat and raised full-year guidance. The company posted revenue of $546.6 million, up 32.2% year-over-year and surpassing Wall Street's estimates by a notable 14.7%. This growth was supported by a 12.7% increase in the number of tests processed. However, it was not all positive, as Natera's GAAP loss per share of $0.74 came in wider than analysts had expected. Despite the earnings miss, investors were encouraged by the company's upgraded forecast. Natera lifted its full-year revenue guidance to a midpoint of $2.06 billion, an $80 million increase from its previous projection, signaling confidence in its continued growth trajectory.
Natera is down 13.8% since the beginning of the year, and at $197.28 per share, it is trading 22.5% below its 52-week high of $254.40 from January 2026. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $1,598.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.
