DAILY UPDATE: 23andMe as Stock Markets Rise

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Stat: $305 million. That’s how much 23andMe co-founder and former CEO Anne Wojcicki’s nonprofit paid to acquire the genetics company. (CNN)

CITE: https://tinyurl.com/2h47urt5

What’s up

  • Building products distributor GMS soared 11.73% on the news that Home Depot will acquire the company for $4.3 billion. Home Depot fell 0.50%.
  • Moderna climbed 1.58% after reporting positive late-stage trial results for its experimental flu vaccine.
  • Palantir rose 4.27% after announcing that Accenture will help federal government clients implement the defense tech company’s AI offerings. Accenture rose 1.16% as well.
  • Joby Aviation flew 11.76% higher after the eVTOL company delivered its first flying taxi to the UAE.
  • Oracle jumped 3.99% thanks to regulatory filings that revealed a new $30 billion annual cloud deal that should prop up its finances quite nicely.
  • Hewlett Packard Enterprise popped 11.08% after the Department of Justice settled its lawsuit with the server maker, clearing the way for it to acquire Juniper Networks for $14 billion. Juniper jumped 8.45% on the news.
  • Robinhood Markets rose 12.77% as the trading app makes a big international push with tokenized equities for European investors.

What’s down

  • Tesla tumbled 1.84% on the news that the Senate version of the tax bill will end credits for EV purchases after September. Elon Musk was not pleased.
  • Gotta pay for that wedding somehow: Amazon sank 1.75% after founder Jeff Bezos announced he’s selling $5.4 billion worth of shares.
  • Boeing’s financial outlook was upgraded to “stable” by Fitch, but the stock still fell 2.32% on news that its acquisition of Spirit Aerosystems faces antitrust scrutiny in the UK.

CITE: https://tinyurl.com/tj8smmes

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Stablecoins & 23andMe

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The world’s two biggest retailers, Amazon and Walmart, are looking into issuing their own stablecoins for US customers to use at checkout instead of credit or debit cards, the Wall Street Journal reportedy. Other big companies, including Expedia and some airlines, are also considering the move.

CITE: https://tinyurl.com/2h47urt5

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23andMe founder Anne Wojcicki is poised to regain control of the company because a nonprofit she controls outbid Regeneron Pharmaceuticals for its assets in a bankruptcy auction, offering $305 million. Wojcicki’s return to power over the company—and its DNA data—comes as a surprise after 23andMe announced last month that Regeneron had won the bidding (it got reopened because the nonprofit made an unsolicited bid).

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Home Prices and 23andMe as Stock Markets Wobble

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The median home price jumped 1.6% YoY last month and is sitting at $431,931. Meanwhile, mortgage rates for a 30-year fixed loan (the most common) are still hovering just under 7%. The chief economist of the National Association of Realtors said lower mortgage rates are the key to getting buyers to buy homes again.

CITE: https://tinyurl.com/2h47urt5

What’s up

  • Ulta Beauty is sitting pretty, up 11.78% after the cosmetics retailer crushed earnings expectations and raised its fiscal guidance for the year ahead.
  • Costco Wholesale rose 3.12% after beating Wall Street’s earnings expectations, though same-store sales did slip a bit.
  • Zscaler climbed 9.79% on strong earnings for the cybersecurity company, including 23% revenue growth.
  • Palantir popped 7.73% on a report from the New York Times that the Trump administration has asked the company to help the government compile data on US citizens.

What’s down

  • Nvidia slipped 2.92% as rhetoric between the US and China over semiconductor import restrictions reignited investor fears.
  • Gap plunged 20.18% after the retailer revealed that tariffs will cost between $100 and $150 million.
  • Marvell Technology fell 5.55% after the chip maker barely beat Wall Street expectations last quarter, failing to impress shareholders.
  • Regeneron Pharmaceuticals tumbled 19.01% thanks to mixed results for its new respiratory drug in late stage trials. The medication is made in partnership with Sanofi, which also dropped 5.61%.
  • Dell Technologies sank 2.08% after missing earnings expectations last quarter, though it did manage to beat on revenue.
  • Elastic NV beat analyst forecasts last quarter, but still fell 12.09% after the software company issued lower-than-expected revenue guidance.
  • PagerDuty, which is in fact a cloud computing company and not a seller of 1990s tech, lost 11.43% after issuing lower second-quarter guidance than Wall Street forecast.

CITE: https://tinyurl.com/tj8smmes

23andMe peaked at a $6 billion valuation in 2021 but never made a profit. It filed for bankruptcy on March 23rd and was put up for auction.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Gold, VIX and Stock Markets Up as 23andMe is Sold

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  • When S&P downgraded the US’ credit rating in August 2011, it sparked the worst one-day decline in US stocks since the Great Financial Crisis. Today was the first day of trading after Moody’s downgraded the US’ credit rating, and while stocks sank at the open, they recovered a lot of lost ground after investors decided to buy the dip.
  • The downgrade pushed yields on 30-year Treasury bonds above 5% at the open, while 10-year yields rose to 4.55% at one point. But yields on both notes fell throughout the afternoon as buyers crept back into the bond market.
  • Gold was the big winner today as investors sought safety, while the CBOE Volatility Index, or VIX, popped higher.

CITE: https://tinyurl.com/2h47urt5

🟢 What’s up

  • Investors largely shrugged at Nvidia’s many announcements today, including the ability for customers to use non-Nvidia chips in Nvidia products. Shares rose just 0.13%.
  • UnitedHealth Group posted a 8.18% gain as investors turned their attention to the suddenly cheap health insurance giant.
  • Novavax exploded 15.01% higher thanks to the FDA’s approval of its new Covid-19 vaccine.
  • TXNM Energy popped 6.98% to an all-time high on the announcement that Blackstone will acquire the power provider for $11.5 billion.

What’s down

  • Tesla tumbled 2.25% after Chinese tech giant Xiaomi announced it will debut its Yu7 sports utility vehicle, a clear Tesla challenger in a key market, on Thursday.
  • Walmart lost 0.12% after Treasury Secretary Scott Bessent met with company leadership to discuss how the retailer could “eat the tariffs.”
  • Bath & Body Works sank 0.56% after the retailer named former Nike exec Daniel Heaf as its new CEO effective immediately.
  • Reddit fell 4.63% due to a downgrade from Wells Fargo analysts who think the social media platform will lose search traffic to Google AI.
  • Diageo is down 0.69% after the maker of Johnnie Walker whiskey said it will take an annual tariff hit of $150 million.
  • Alibaba dropped 0.40% on a New York Times report that the Trump Administration is concerned with Apple’s plan to use Alibaba AI on its iPhones.
  • JPMorgan fell 1% as shareholders at the bank’s investment division grapple with CEO Jamie Dimon’s departure.
  • Solar stocks sank after the Republican tax and spending bill moved forward with a commitment to end clean energy tax credits earlier than planned. First Solar fell 7.59%, SunRun lost 7.84%, and AES lost 4.10%.

CITE: https://tinyurl.com/tj8smmes

Regeneron Pharmaceuticals will buy 23andMe for $256 million.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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23andMe Files for Bankruptcy

By Staff Reporters

BREAKING NEWS

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Deoxyribonucleic acid or DNA is a polymer composed of two polynucleotide chains that coil around each other to form a double helix. The polymer carries genetic instructions for the development, functioning, growth and reproduction of all known organisms and many viruses.

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The 23andMe Public Company

The genetic testing company 23andMe went from biotech superstar to the brink of collapse. And, its most valuable asset might be its controversial customer DNA data trove.

More: http://www.23andme.com

Now, 23andMe filed for bankruptcy late Sunday night and announced the resignation of its chief executive officer Anne Wojcicki who is stepping down from her position but remains on the board of directors.

Wojcicki has so far tried unsuccessfully to rescue the business by buying it back and capping a precipitous fall for the DNA-testing company.

MORE: https://tinyurl.com/38rtfjck

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DAILY UPDATE: Stark Laws & 23andMe as Wall Street Pulls Back

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If the practice makes a reasonable effort to collect from a patient who is experiencing financial hardship (e.g., job loss due to COVID-19), providers may be able to offer a discount (e.g., settle for 70% of the amount owed) without violating Stark Law, says Reed Tinsley, CPA, healthcare consultant in Houston, Texas. “But remember that just because even if someone doesn’t have a job, they could still have money,” he adds. “There are a lot of people out there with big savings accounts.”

CITE: https://tinyurl.com/tj8smmes

Source: Lisa A. Eramo, MA, Keith A. Reynolds, Physicians Practice [4/3/24]

  • 23andMe cofounder and CEO Anne Wojcicki wants to take the once-hot DNA company private. 23andMe said a Special Committee would evaluate the proposal in light of other options. The company’s valuation has tumbled since its stock market debut in 2021. The struggling DNA company once valued in the billions — was essentially worthless as of Wednesday.
  • But,shares soared Thursday less than three years after it began selling shares. Wojcicki told board members she is proposing to acquire the company in a potential go-private transaction, according to a filing with the Securities and Exchange Commission.

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Here’s where the major benchmarks ended:

  • The S&P 500 index fell 11.09 points (0.2%) to 5,011.12; the Dow Jones Industrial Average® ($DJI) rose 22.07 points (0.1%) to 37,775.38; the NASDAQ Composite lost 81.88 points (0.5%) to 15,601.50.
  • The 10-year Treasury note yield (TNX) gained almost 5 basis points to 4.633%.
  • The CBOE Volatility Index® (VIX) dropped 0.22 to 17.99.

Weakness in chip maker shares pushed the Philadelphia Semiconductor Index (SOX) down 1.7% to a two-month low. Biotechnology and consumer discretionary shares were also among the weakest sectors. Energy companies eroded as WTI Crude Oil (/CL) futures dropped for a third straight trading day and closed at a three-week low. 

The S&P 500 is on track for its third consecutive weekly decline, its weakest stretch since September, while the NASDAQ Composite appears headed for a fourth straight weekly slide.

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Cigna Sells Medicare Part C as 23andMe Crashes

By Staff Reporters

HCSC will acquire Cigna’s Medicare Advantage, Part D, supplemental benefits and CareAllies businesses, and the parties expect the deal to close in the first quarter of 2025. And, as January exits, we enter the thick of earnings call season. This week executives at AbbVie, Cigna, and Merck—to name a few—will brief healthcare investors on how their companies fared in 2023, and provide insights on what to expect in 2024.

And, Anne Wojcicki’s billions have vanished. 23andMe’s valuation has crashed 98% from its peak and NASDAQ has threatened to delist its sub-$1 stock. Wojcicki reduced staff by a quarter last year through three rounds of layoffs and a subsidiary sale. The company has never made a profit and is burning cash so quickly it could run out by 2025.

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“23andMe” Hacked & “Neuralink” Device Defective?

By Staff Reporters

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In a significant breach of privacy, hackers gained access to the DNA relatives data of 6.9 million users on 23andMe, posing serious questions about the security measures in place for our most personal data.

Meanwhile, Neuralink, the brain-computer interface company, faced disturbing reports about its clinical trials. Allegedly, up to a dozen monkeys suffered severe adverse effects, including brain swelling and partial paralysis, after being implanted with the Neuralink device.

Neuralink Corp. is an American company that is developing brain computer interfaces (BCIs) as of 2022. Founded by Elon Musk and a team of seven scientists and engineers, Neuralink was launched in 2016 and was first publicly reported in March 2017.

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23andMe: Transitioning to a Healthcare Company

By Staff Reporters

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23andMe is rolling out a $1,188-per-year tool to identify users’ genetic vulnerabilities as part of its broader transition from a DNA-testing service into a healthcare company.

READ MORE HERE: HACKED: 23andMe

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HACKED: 23andMe

By Staff Reporters

More than 7 million 23andMe customers were the victims of a data breach, with the hackers specifically targeting users of Ashkenazi Jewish ancestry. The data includes users’ names, profile photos, genetic ancestry results, date of birth, and geographical location. The hackers are attempting to sell the data, asking for between $1 and $10 per account, depending on how many accounts a buyer wants to purchase.

How’d they do it? By “credential stuffing”—acquiring the login credentials from one site and using them on other sites in order to gain access to sensitive information. 23andMe reported the incident to law enforcement and is asking all customers to change their passwords and use two-factor authentication.

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To GENETIC Test -OR- NOT to Genetic Test

That is the Question?

By Dr. David E. Marcinko MBA

I few years ago I was in Finland, Sweden and the three Baltic countries that have been in the political news lately.

The later is a group of countries presently referred to by the shorthand “Baltic States”: Estonia, Latvia, and Lithuania.

So, it was with some irony that I noted these two conflicting essays.

Estonia to DNA Test 100,000 residents and give lifestyle advice based on results

https://www.independent.co.uk/news/world/europe/dna-test-health-advice-disease-genetic-lifestyle-estonia-government-a8287516.html

Nearly Half of At-Home DNA Test Results Could Be Wrong

http://www.newsweek.com/40-percent-home-dna-test-results-could-be-wrong-868448

Assessment

Now, absent accuracy and precision, vis-a-vie the FB situation, what about patient privacy? After all, this is your DNA. Your thoughts are appreciated.

Conclusion

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Do OTC DNA Tests Give Bogus Results?

Government Finds Little or No Useful Predictive Risk Information

[By Staff Reporters]

46CB1C3AA5898E7B3C85B59E571D

WASHINGTON — U.S. government investigators say personalized DNA tests that claim to predict a person’s likelihood of developing diseases are misleading and offer little or no useful information.

Link: http://www.msnbc.msn.com/id/38363300/ns/health

Assessment

The Energy and Commerce Committee recently heard testimony from the FDA and three genomic testing companies: 23andMe, Navigenics and Pathway Genomics Corp.

Government Report: Genetic tests

Conclusion

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