Why 23andMe Rocketed 27.9% Higher in October

Shares of 23andMe (NASDAQ: ME) jumped 27.9% in October, according to data from S&P Global Market Intelligence. The consumer genetics and pharmaceutical research company announced an acquisition of the telehealth platform Lemonaid Health for $400 million last month, which is the main news that drove up the stock price. The stock also got a boost from the broad market rally in growth stocks to close out October.

23andMe is the company behind the popular genetic testing kits where consumers can learn about their ancestry background and genetic health. The company has been selling these testing kits since 2006, and now has 11.6 million customers in its database as of the end of last quarter. While it plans to continue selling genetic testing kits in the future, 23andMe's main business plan is to leverage its huge database to launch new business lines. For example, the company has invested heavily into drug research, with over 40 programs in development that are supposed to use the insights from 23andMe's database to produce novel solutions for patients.

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Source Fool.com