What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). jumped 11.6% in the morning session after 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.
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What Is The Market Telling Us
Natera’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Natera and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 5.2% on the news that stocks rebounded, following a broad-based sell-off the previous day. The Nasdaq was down 4%, while the S&P fell 2.7% as concerns over the ongoing trade war continued to spread. While those concerns haven't exactly disappeared, it's likely some investors looked to take positions in some of the beaten-down stocks, especially some of the high-quality names that got caught up in the sell-off.
Natera is down 2.6% since the beginning of the year, and at $156.47 per share, it is trading 11.6% below its 52-week high of $177 from February 2025. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $3,048.
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