To The Moon

Is Cathie Wood still trustworthy? Cathie Wood acquired 28.7 Million $Invitae(NVTA)$ shares worth $122 Million. That's 0.68% of their equity portfolio (31st largest holding). The investor owns 11.48% of the outstanding Invitae stock. The first Invitae trade was made in Q4 2016. Since then Cathie Wood bought shares fifteen more times and sold shares on five occasions. The investor's estimated purchase price is $514 Million, resulting in a loss of 76%. $ARK Innovation ETF(ARKK)$ $Invitae(NVTA)$ Invitae Corporation, a medical genetics company, integrates genetic information into mainstream medicine to improve healthcare of people in the United States, Canada, and internationally. The company offers genetic tests in various clinical areas, digital health solutions, and health data services. It serves patients, healthcare providers, biopharma companies, and other partners. Genetic testing platform Invitae ripped 277% higher on August 10. It was truly epic. However, this stock was down by 45% in the following week by a severe sell-off.It appears the nearly 300% run-up on Wednesday was not about earnings but instead only due to a short squeeze. Roughly 217 million shares traded hands. For comparison, the average daily trading volume was just 13.7 million shares over the previous three months. Furthermore, the business entered August with only about 235 million shares outstanding total. It was also truly bizarre. Invitaeannounced a strategic pivot and provided financial guidance on July 18. That included unflattering growth projections, replacing the CEO, laying off one-third of its workforce, and promising to keep cash burn to "only" $825 million in 2022 and 2023. Nothing changed when it reported second-quarter 2022 operating results on August 9. Earnings Generated revenue of$136.6 million in the quarter, a 17.5% increase compared to$116.3 million in the second quarter of 2021. GAAP gross profit was$26.3 million, and non-GAAP gross profit was$54.7 million in the second quarter of this year. GAAP gross margin was 19.2%. Non-GAAP gross margin was 40.1% as compared with 36.6% in the first quarter of 2022 and 35.4% in the second quarter of 2021. Cash, cash equivalents, restricted cash and marketable securities were$737 million as of June 30, 2022. Cash burn was$147 million, achieving a $22 million reduction from the first quarter of 2022. Invitae was among the worst positioned. It spent money a little carelessly, prioritized revenue growth over every other metric, and wasn't delivering any financial benefits from achieving larger scale. From 2018 to 2021, the business grew revenue 212%, but only grew gross profit 63%. That's a problem when operating expenses grow 302%. The result was unsurprising: Operating cash outflows swelled 507% in that span.