Stock splits overall are seen positively and can increase accessibility and liquidity, but reverse stock splits like that of 23andMe often signal deeper issues within the company.
23andMe’s reverse stock split from 350.3 million outstanding shares to 17.5 million and a price increase to $5.34 per share raises serious concerns about the company's health.
Despite achieving a higher share price through the reverse stock split, investors are advised to avoid 23andMe stock due to its drastic fall from a $6 billion valuation.
23andMe’s ambition to become a global healthcare leader failed, as its plans exceeded its operational and market capabilities, leading to its decline into penny stock status.
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