BNGO Stock Price Forecast: What Next For Bionano Genomics?

The BNGO stock price has collapsed to the lowest level since December 2020. The stock is trading at $2.17, which is significantly lower than last year’s high of $15.74. This 85% drop brings the Bionano Genomics market cap at about $627 million. 

Bionano Genomics earnings

The Bionano Genomics stock price has been in a freefall in the past few months as investors worry about the company’s growth. Considering that most meme stocks companies have seen their value evaporate, it is not alone. Examples of meme stocks that are no longer flying high are AMC, Blackberry, Nokia, and ContextLogic, the parent company of Wish.com.

The relatively strong results did not ameliorate the crash of BNGO stock. On Tuesday, the firm said that it sold 3,204 flow cells in the fourth quarter of 2021, a 29% increase. This means that the firm’s flow cells jumped to 12,500 in 2021, which is a remarkable performance since it sold just 6,311 in the previous year. As a result, its Q4 revenue rose by 58% to $6.3 million while its annual revenue was over $18 million.

The main reason why the BNGO stock price has cratered is that this growth has come at a cost. For one, its gross margins dropped from 25% in Q3 to 4% in Q4. The management attributed this performance to a slow manufacturing yield from one of its contract manufacturers. As a result, it wrote off inventories worth $1.2 million. On its guidance, the firm expects to make between $5.5 million and $5.8 million in Q1. It sees its revenue rising to between $24 million and $27 million for the full year.

BNGO stock price forecast

The daily chart shows that the BNGO stock price has been in a strong bearish trend in the past few months. As a result, the shares remain significantly below the short and long-term moving averages. It is also below the key support at $4.33, the lowest level on May 21st last year. As for now, there are no indications that the sell-off is about to end. Therefore, the bearish trend will continue as long as the price is below the 50-day moving average.