rewrite this title 10x Genomics: Is Single Cell Sequencing Too Niche? – Nanalyze

The ability to understand genetic sequences ushered in an entire era of innovation. Illumina (ILMN) continues to be the leader in next generation sequencing and has largely squandered the opportunity to make something more of that. A more granular sequencing method known as “long-read sequencing” is the next advancement in this area making traction – companies like Oxford Nanopore (ONT.L) and Pacific Biosciences (PACB).

Ultimately, being able to sequence every single cell in the human body should provide us with enough data to finally understand biology in its entirety. Eventually, we might even create a “digital twin” of the human body. That’s the idea behind investing in the leading provider of pick-and-shovel single cell sequencing technology – 10x Genomics (TXG).

The Fall of 10x Genomics Stock

We always say, “invest in companies, not stocks.” Still, it’s not normal for a stock to plummet over 50% in a year, not to mention 87% over the past five years. Such a dramatic drop in share price is often accompanied by an equivalent drop in fundamentals. For any disruptive technology stock, revenue growth is a proxy for disruption.

In the case of 10x, we need to differentiate between types of revenues – settlement/royalty revenues, instrument sales, and consumables. The two latter types need to be growing else their platform isn’t disrupting anything. For