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Illumina - AI Stock Analysis
Analysis generated June 11, 2025
Illumina, Inc. is a global leader in genetic sequencing and array-based technologies. The company primarily focuses on developing and commercializing technologies useful for the analysis of genetic variation and biological function. Founded in 1998, Illumina's products and services serve various domains including genomics, molecular biology, and more recently, precision medicine and reproductive health.
Fundamental Analysis
For the most recent quarter, Illumina reported a revenue of $1.04 billion. This marks a 5.71% decrease compared to the preceding quarter and a 3.25% decline year-over-year. Such decreases can indicate a possible downturn in the short-term demand for their products.
Net income was reported at $131 million, which represents a significant 29.95% decrease from the previous quarter. However, it is noteworthy that compared to the same quarter last year, net income has actually increased by 203.97%. This indicates a substantial improvement on a yearly basis, potentially showcasing better cost management or increased operational efficiency.
EBITDA for the last quarter was $0, marking a 100% decrease from both the previous quarter and the same quarter last year. Zero EBITDA is concerning for any company as it points to issues in generating operating income.
Technical Analysis
The current stock price of Illumina stands at $87.98, which is a 16.13% increase from a month ago, indicating a positive short-term trend. However, it has decreased by 16.65% compared to a year ago, which is a potential long-term concern.
The stock's Simple Moving Average (SMA10) is currently at $83.73, an increase from the previous $83.16. This rise suggests potential upward movement in the stock's price. The Relative Strength Index (RSI) is at 50.6, which reflects a neutral condition.
Alternative Data Analysis
Using data from popular job boards, Illumina presently has 256 open positions, reflecting a 97% increase in job postings over the last couple of months. This could signal growth and expansion. However, employee sentiment data reveals only 32% of employees have a positive business outlook, with a 20% decline in business outlook recently, signaling internal concerns.
Customer acquisition metrics are also concerning. Illumina’s website has an estimated 660,000 visitors, down by 20% in the past couple of months, potentially indicating a drop in customer interest. Social media follows provide additional signals; the company has 13,000 Instagram followers and 98,000 Twitter followers, with negligible changes in follower count over the past couple of months.
AltIndex's AI score for Illumina is 36, which is a sell signal, aggregating various data points including fundamentals, technicals, and alternative data.
Conclusion and Recommendation
Illumina exhibits both strengths and weaknesses across different analysis dimensions. The notable year-over-year increase in net income suggests some solid long-term growth potential, but the consecutive quarterly downturns in revenue and EBITDA are concerning. Technically, the short-term trend seems bullish, but longer-term metrics and neutral RSI warn of potential volatility. Additionally, alternative data presents mixed signals; while job postings are up, employee sentiment and customer care metrics show potential weaknesses.
Considering all the data, the recommendation would be cautious. Illumina demonstrates long-term potential but possesses significant short-term risks. Investors may need to balance growth optimism with awareness of near-term volatility and operational challenges.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
