| | | | Presented By | | | | | A much-touted DNA testing firm is spiraling after filing for bankruptcy; a lunar tech firm is gaining momentum after a historic Moon landing and strong revenue growth; and a tiny biotech firm is soaring after a new licensing deal. Here’s what you need to know. | |
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| | | | | What to Watch | Earnings: | KB Home [KBH]: Aftermarket Oklo Inc. [OKLO]: Aftermarket Enerpac Tool Group Corp. [EPAC]: Aftermarket D-Market Electronic Services & Trading [HEPS]: Aftermarket | Economic Reports: | S&P flash U.S. services and manufacturing PMI: 9:45 a.m. |
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| | | | DNA Testing | 23andMe Files for Bankruptcy After Data Breach and Declining Sales | | Genetic testing company 23andMe (NASDAQ: ME) has filed for bankruptcy in the United States and is now seeking a buyer, marking a dramatic fall from its once high-flying status. | The move comes after the company grappled with a major data breach, plummeting demand for its DNA kits, and unsuccessful efforts to secure a takeover. | On Sunday, the company submitted its Chapter 11 filing, listing estimated liabilities between $100 million and $500 million. | It also announced it has secured a $35 million financing commitment to maintain operations during the restructuring process. | Shares are down 45% in early trade following the resignation of co-founder and CEO Anne Wojcicki. | Chief Financial Officer Joe Selsavage has been named interim CEO. Wojcicki’s multiple buyout proposals—including a recent bid valuing the company at just $11 million—were reportedly rejected by the board. | The company is currently valued at approximately $50 million, far below its 2021 peak of $6 billion when it went public via a SPAC led by Richard Branson. | A 2023 cyberattack that compromised data from 7 million users dealt a significant blow to 23andMe’s credibility. | The firm later agreed to a $30 million settlement and cut 200 jobs. All therapeutic development was also halted last year. | Wojcicki signaled on X that she plans to make another offer to acquire the company, though no further details have been shared. |
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| | Space Technology | Intuitive Machines Posts Strong Q4 and Full-Year Growth Following Historic Lunar Mission | | Lunar exploration and space technologies firm Intuitive Machines (NASDAQ: LUNR) posted a strong finish to 2024, with fourth-quarter revenue rising 79% year-over-year to $54.7 million. | For the full year, the company generated $228 million in revenue—nearly triple its 2023 total. | In a standout achievement, the company successfully completed the southernmost lunar landing in history, enhancing its credibility. | Technical advancements and new contracts with NASA also contributed to its growth momentum. | Shares of the firm are up 2.6% in premarket trading. | Intuitive Machines closed 2024 with $207.6 million in cash, which has since grown to $385 million by March 2025 following a warrant redemption and a $125 million equity raise through a private placement with Boryung. | Its backlog climbed 22% year-over-year to $328.3 million. | The company recorded positive gross margins in back-to-back quarters for the first time and now forecasts 2025 revenue between $250 million and $300 million. | Management expects to hit positive run-rate adjusted EBITDA by the end of this year, with full-year profitability projected in 2026. |
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| | | | Data Analytics | DNB to Be Acquired by Clearlake Capital in $7.7 Billion Deal | | Dun & Bradstreet (NYSE: DNB) has officially announced an agreement to be acquired by Clearlake Capital Group in a transaction valued at $7.7 billion, including the assumption of debt. | The deal places the company’s equity value at $4.1 billion, with shareholders set to receive $9.15 in cash per share. | The move marks a major shift for the business data and analytics provider, which is set to transition back into a privately held company following the completion of the transaction. | The deal includes a 30-day “go-shop” period, allowing Dun & Bradstreet to solicit alternative offers. | The acquisition is expected to close in the third quarter of 2025, pending shareholder approval and regulatory clearance. | Over the past six years, Dun & Bradstreet has reported steady operational improvements, with revenue increasing by 40% and EBITDA up by 60%. | The company has also expanded its profit margins by nearly 600 basis points and lowered its leverage ratio from 9x to 3.6x. | The buyout by Clearlake Capital reflects continued interest from private equity firms in acquiring established enterprise data providers, particularly those with improved profitability and reduced debt loads. | Once finalized, Dun & Bradstreet will be removed from public markets and begin a new chapter under private ownership. |
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| | Movers and Shakers | | Windtree Therapeutics, Inc. [WINT] - Last Close: $1.48 | Windtree Therapeutics is a biotechnology company traditionally focused on cardiovascular therapies. | Shares of the firm are soaring 37% in premarket trading after it entered a licensing and sourcing deal with Evofem Biosciences to manufacture Phexxi, a non-hormonal birth control vaginal gel, at lower cost. | My Take: Its a tiny, highly speculative play. The stock has struggled financially, including a steep 99% drop in its stock over the past year, and is now seeking new revenue channels. It might be best to wait and watch for the time being. |
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| Diginex Limited [DGNX] - Last Close: $110.00 | Diginex is an ESG-focused regulatory technology (RegTech) firm which provides digital solutions for sustainable finance and compliance. | Shares of the Diginex are rising 11% in early trading because the company announced a major strategic partnership with His Highness Shaikh Mohammed Bin Sultan Bin Hamdan Al Nahyan of the Abu Dhabi Royal Family. | The deal includes a $250 million capital injection and a planned dual listing on the Abu Dhabi Securities Exchange (ADX). | My Take: This could be a major capital lifeline for DGNX. Keep a close watch on this share for future growth. |
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| The AZEK Company Inc. [AZEK] - Last Close: $41.39 | The AZEK Company specializes in low-maintenance, sustainable outdoor living products like decking, trim, and railings. | Shares of the firm are surging in premarket trading after James Hardie Industries announced an $8.75 billion cash-and-stock deal to acquire it. | The offer values AZEK at $56.88 per share, a 26% premium to its recent average price. | My Take: AZEK shareholders will likely benefit from a premium buyout with long-term upside as part of a larger, more diversified company. Keep this stock on your radar as the deal progresses further. |
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| | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia
Elite Trade Club |
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