A company that makes losses is not always out of favour among investors but at the same time it cannot be denied that cash burn is a real issue for many of those companies.
This brings us to the subject of the company 23andMe Holding (NASDAQ:ME), which was actually trading within a range on Tuesday. It might be a good idea for investors to take a look at the company’s cash burn rate to make up their minds about 23andMe Holding and its stock. At the end of June this year, the company reported that it had a cash balance of $770 million but at the same time, it did not have any debts either.
Last year, the company had burned through $90 million in cash and at that rate, the company would have a cash runway of as long as 8 and a half years given its reserves.
That is a pretty long runway and once would need to take it into consideration when looking into the 23andMe Holding stock. In such a long runway, the company may break even or even turn profitable and hence, the situation might change quite dramatically for 23andMe Holding shareholders.
