Oxford Nanopore: The Next Big Genomics Winner?
Movie franchises are successful because they find a formula that works and stick with it. How else to explain 11 installments of Fast & Furious movies? Not to mention Die Hard, Transformers, the Marvel Cinematic Universe, and just about any other action franchise. There is something comforting about watching a steadfast hero recycle his signature lines within a familiar story, while blowing up as much stuff as possible along the way. Retail investing is sort of similar. We put money into a tech company that we hope will blow up the competition year after year, while posting double-digit growth until the end of time. Every sequel – each fiscal year – is all about getting more bang for your buck with as few unnecessary plot twists as possible.
While boring is good, it can be challenging to analyze a stock when the story changes little from year to year. That brings us to Oxford Nanopore (ONT.L), a pioneer in long-read gene sequencing that has posted double-digit revenue growth over the last few years while still chasing positive cash flow and profitability. The story remained largely unchanged in 2024 but there is much we can learn by reading between the lines. Below, we take a deep dive into the company’s latest numbers, explore its next moves, and evaluate whether it can maintain the same kind of momentum that once put legacy company Illumina (ILMN) on the map before it fell off the edge of the world.
