Shares of 23andMe (NASDAQ: ME) rose more than 9% on Tuesday. The stock, which closed at $11.36 on Monday, opened at $11.40 and rose as high as $12.44 at midday on Tuesday. The stock has been as low as $7.01 and as high as $18.16 over the past 52 weeks. So far this year, shares are up a little more than 3.7%. The company, founded in 2006, went public via a merger with a special purpose acquisition company (SPAC) in June. It offers services for users seeking health and ancestry information from their DNA.
Investors are still digesting what the company's prospective $400 million purchase of telehealth start-up Lemonaid Health, announced on Oct. 22, means. On the one hand, Lemonaid isn't profitable, but on the other, the move may allow for the synergy of 23andMe's genetic database to be used to help primary care initiatives. Initially, the company's stock fell on the news, but perhaps on further reflection, investors see a big opportunity for 23andMe.
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Why 23andMe Stock Was Up More Than 9% on Tuesday