Investors are feeling the heat with popular Bionano Genomics (NASDAQ:BNGO) today. Despite no real news, shares are down more than 15% in intraday trading. So what should you know now? And what could be behind the slump in BNGO stock?
- Bionano Genomics is a a popular biotech company that has rallied throughout 2021. Despite this, BNGO stock is down 15% today.
- Recent press releases speak to its growth and its opportunities in genetic research.
- Yesterday, its Lineagen division announced a new publication that should ultimately improve its diagnostic abilities.
To start, investors should be sure to understand the company. Bionano Genomics, as its name implies, is a genome analysis business. It provides a variety of solutions for genetic research and testing, and also provides testing for patients with Autism Spectrum Disorder (ASD). Perhaps because of growing interest in gene-editing and testing thanks to Ark Invest, its Saphyr system has been captivating investors.
In fact, earlier in February, positive results from that Saphyr system were a driver of serious gains. Add in new listing compliance, a fireside chat and a pilot program in Canada, and the BNGO stock story looked pretty appealing.
Yesterday, that story got even stronger. The company said its Lineagen team had published a new study, and that the study describes the first genome-wide model to “asses and score nearly all protein-coding genes based on their likelihood to cause central nervous system (CNS) disease.” In other words, Lineagen now has new information to help its clinical interpretation. It can aid genetic counselors, improve diagnostics and help give more precise health info to patients. And perhaps even more importantly, Bionano can take the Lineagen study results and integrate them into the Saphyr system.
Talk about a win-win for science and for BNGO stock.
Why BNGO Stock Is Falling Today
With all that in mind, investors may be wondering why BNGO stock is falling today. However, it is important to recognize that seemingly the entire market is suffering. Top names like Tesla (NASDAQ:TSLA) are in the red, and other popular equities on Wall Street are down. This could mean that the high-flying stock is just moving in sympathy with the market. It also could mean that with a sense of panic influencing trading, investors are apprehensive about a riskier company. Although Bionano has been earning praise, biotech stocks in general represent uncertainty.
Looking to the future though, there is no reason to panic without new information about Bionano Genomics. In fact, a few catalysts should start to boost biotech stocks again. SoftBank (OTCMKTS:SFTBY) announced today that it plans to invest billions in biotech stocks as part of its plan to expand its reach in healthcare. Many retail investors could follow in its footsteps.
Keep calm, and keep BNGO stock on your radar here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.