What Happened?

Shares of biotech company 10x Genomics (NASDAQ:TXG) fell 8.5% in the pre-market session after the company reported disappointing fourth-quarter results: its EPS missed significantly, and its full-year revenue guidance fell short of Wall Street's estimates. Revenue declined by 10% year on year, reflecting ongoing weakness in demand, particularly in instrument sales, though consumables performed better. Despite the revenue decline, gross margins improved, benefiting from a more favorable product mix. However, operating expenses remained elevated, and the company posted a larger-than-expected net loss, driving the EPS miss. Overall, this was a softer quarter.

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What The Market Is Telling Us

10x Genomics’s shares are extremely volatile and have had 34 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.

10x Genomics is down 19.5% since the beginning of the year, and at $11.43 per share, it is trading 76.4% below its 52-week high of $48.45 from February 2024. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $131.72.

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