What Is Happening With 23andMe Stock Price (ME)?

Those following the stock price of 23andMe (NASDAQ: ME) will have noticed a significant shift in price, to the tune of 20x. This has not come with an expansion of market cap, but is the result of a restructure.

In a significant corporate move, 23andMe Holding Co, a prominent name in the genetics-led healthcare and therapeutics field, made strides to address its stock performance issues by implementing a 1-for-20 reverse stock split in order to remain in compliance with NASDAQ regulations.

This financial manoeuvre for its Class A and Class B common stock is deemed a strategic attempt to revitalise the company's market standing and comes as the stock had been trading under $1 for an extended period.

The reverse stock split became effective today, and has culminated in the consolidation of every 20 shares into a single share of the respective class. Prior to the split, 23andMe boasted approximately 350,292,546 shares of Class A common stock and 166,443,192 shares of Class B common stock. These figures have now been recalibrated to around 17,514,628 and 8,322,160 shares respectively, post-split.

This change comes at a challenging financial moment for 23andMe, with their Q1 2025 revenue seeing a sharp 34% decline to $40 million. This reduction stems largely from the termination of a once-lucrative partnership with GSK. However, on a more positive note, the net loss has shown an upward trend, currently posted at $69 million.

Despite the fiscal pressures, 23andMe is not remaining static. The company has been proactively diversifying its service offerings, launching new genetic predisposition reports and introducing a weight loss program through its subsidiary, Lemonaid Health.

The company's financial health is not all dire; it is fortified by more cash than debt, granting it a cushion of financial agility amid these trying times. While the reverse stock split is primarily a tactic to bolster the stock's faltering performance and to align with Nasdaq's minimum bid price prerequisites, it may also spark interest among new investors who could be vital for the company's turnaround.

Amidst the storm of financial uncertainties, 23andMe's reverse stock split stands as both a remedial and a progressive step with the hope of stabilising its position in the market while aiming to attract fresh investments to forge a path toward profitability.