Illumina (ILMN) is staging a breakout after years of regulatory and activist chaos that cut the stock in half twice over three years.
Josh Brown of Ritholtz Wealth Management flagged the genomics sequencing company as a "breakout in progress" and a top stock pick. The rally is notable because it is outrunning sector weakness and macro anxiety around Fed policy and AI spending.
The stock hit $500 in 2021, then collapsed as growth slowed. The damage accelerated when Illumina botched a $8 billion reacquisition of Grail, its cancer-diagnostics spinoff. European regulators fined the company €432 million for closing the deal without approval, then ordered it unwound. Illumina spun Grail back out in June 2024. Activist investor Carl Icahn also waged a proxy fight that ousted the chairman.
Now the regulatory fog has lifted. Illumina operates a razor-and-blade model: it sells DNA sequencing machines to hospitals, diagnostic labs, pharma companies and research centers, then locks in recurring revenue on consumables and reagents.
The chart has trended up since last fall, and Brown noted the fundamental story is now aligning with price action. This pattern—technical strength preceding narrative recovery—often marks the start of sustained rallies in high-conviction names. Watch for guidance upgrades and margin recovery as the company resets investor expectations post-Grail.
