10x Genomics Skyrockets 10.26%—What’s Fueling This Sudden Surge?

Summary
• 10x Genomics (TXG) surges 10.26% intraday to $14.125, its highest since May 2025.
• Earnings beat of $0.28 EPS (exceeding estimates by $0.63) and 12.9% revenue growth drive optimism.
• Analysts’ mixed price targets range from $6.50 (Goldman Sachs) to $14.00 (Deutsche Bank).

Shares of 10x Genomics have erupted in a dramatic intraday rally, surging 10.26% to $14.125 amid a mix of earnings outperformance and analyst activity. The stock’s sharp rebound from its intraday low of $12.95 highlights renewed investor confidence, despite a 52-week low of $6.78 and a dynamic PE ratio of 4,884.52. With biotech sector peers like Illumina (ILMN) rising 3.4%, the move raises questions about whether TXG’s rally is a breakout or a short-term correction.

Earnings Beat and Revenue Growth Ignite Rally
10x Genomics’ 10.26% intraday surge is directly tied to its Q2 earnings report, which revealed a $0.28 EPS beat (exceeding estimates by $0.63) and 12.9% year-over-year revenue growth to $172.91 million. The results, coupled with a negative net margin of -13.13%, suggest improving operational efficiency despite ongoing losses. Analysts’ recent price target adjustments—ranging from $6.50 (Goldman Sachs) to $14.00 (Deutsche Bank)—add to the narrative, with Morgan Stanley upgrading its target to $17.00. The stock’s 0.2% post-earnings open at $12.31 further underscores the market’s recalibration of risk-reward dynamics.

Biotech Sector Mixed as 10x Genomics Outperforms
The biotech sector remains fragmented, with Illumina (ILMN) rising 3.4% on the day but trailing TXG’s 10.26% surge. While 10x Genomics’ rally is driven by earnings outperformance, broader sector momentum is constrained by mixed fundamentals. For instance, Vedanta’s failed phase 2 colitis trial and Generation Bio’s 90% workforce reduction highlight sector-wide volatility. TXG’s outperformance suggests its earnings beat and revenue growth are being viewed as a rare positive catalyst in an otherwise cautious biotech environment.

Options Playbook: Leveraging Volatility and Gamma for Aggressive Bulls
• MACD: 0.1935 (bullish divergence from signal line 0.4104)
• RSI: 42.46 (oversold territory, suggesting potential rebound)
• Bollinger Bands: Price at $14.125 (near upper band $14.68, indicating overbought conditions)
• 200D MA: $12.18 (price above, suggesting short-term strength)

Technical indicators suggest a short-term bullish bias, with RSI in oversold territory and MACD hinting at momentum. Key levels to watch include the 200D MA ($12.18) and Bollinger upper band ($14.68). The stock’s 10.26% intraday gain has also triggered elevated gamma and theta in options, making leveraged plays attractive.

Top Option 1: TXG20250919C15 (Call, $15 strike, 2025-09-19 expiry)
• IV: 66.09% (moderate volatility)
• Delta: 0.4472 (moderate directional sensitivity)
• Theta: -0.0219 (rapid time decay)
• Gamma: 0.1307 (high sensitivity to price swings)
• Turnover: $7,257 (high liquidity)
• Leverage Ratio: 15.77% (moderate leverage)
• Price Change Ratio: 119.51% (strong intraday performance)
This call option stands out for its high gamma and moderate delta, offering significant upside if TXG breaks above $15. A 5% price move to $14.83 would yield a 119.51% gain, aligning with the stock’s recent momentum.

Top Option 2: TXG20250919P15 (Put, $15 strike, 2025-09-19 expiry)
• IV: 80.22% (elevated volatility)
• Delta: -0.5270 (high directional sensitivity)
• Theta: -0.0086 (slower time decay)
• Gamma: 0.1084 (moderate sensitivity)
• Turnover: $23,550 (high liquidity)
• Leverage Ratio: 7.47% (low leverage)
• Price Change Ratio: 8.57% (modest intraday gain)
This put option is ideal for hedging or short-term volatility plays. If TXG consolidates near $15, the put’s high delta and gamma could capitalize on a pullback, though its lower leverage limits upside compared to the call.

Action Insight: Aggressive bulls should prioritize TXG20250919C15 for a breakout above $15, while volatility traders may use TXG20250919P15 to hedge against a near-term correction.

Backtest 10x Genomics Stock Performance
The backtest of TXG's performance after a 10% intraday surge shows mixed results. While the stock experienced a positive intraday change, the longer-term returns were negative. The 3-day win rate was 50.09%, the 10-day win rate was 49.05%, and the 30-day win rate was 48.01%. This indicates that TXG had a higher probability of positive returns in the short term but faced challenges in maintaining those gains over longer periods.

Bullish Momentum Intact—Act Now on Key Levels
10x Genomics’ 10.26% intraday surge is a high-conviction trade, driven by earnings outperformance and analyst optimism. While the stock remains 48% below its 52-week high of $24.76, its current price of $14.125 sits above the 200D MA and within striking distance of the Bollinger upper band. Investors should monitor the $15 psychological level and the sector leader Illumina (ILMN), which rose 3.4% today. A sustained break above $15 could trigger a re-rating, while a drop below $12.95 (intraday low) would signal renewed bearishness. For now, the call option TXG20250919C15 offers the most compelling leveraged play on this momentum.