Why I Sold My Invitae Stock

For years I have detested the growth-at-all-costs business models followed by emerging growth companies. They work – until one day (or quarterly update) they don’t. All it takes is one disappointing revenue growth rate or downward revision in guidance for Wall Street analysts to issue sharply lower price targets. The little guy is usually the one that ends up getting hurt. That means you, dear reader.

One of my go-to examples over the years was genetic testing company Invitae  (NVTA) – Get Invitae Corp. Report. The deeply unprofitable business invested heavily in growth and acquisitions, which required it to issue new stock to raise capital and keep the lights on. Case in point: the number of shares outstanding increased 440% in the five-year period ending March 2022.

Source: https://www.thestreet.com/investing/why-i-sold-my-invitae-stock?puc=yahoo&cm_ven=YAHOO&yptr=yahoo