Illumina Plunges 7.84 as $460M Volume Ranks 285th Amid Mixed Earnings and Strategic Risks

On August 1, 2025, Illumina (ILMN) closed with a 7.84% decline, trading at $94.66, while its $460 million trading volume ranked 285th on the day. The stock’s performance followed mixed signals from its second-quarter earnings report, including a 3% year-over-year revenue drop to $1.06 billion and a 17.66% earnings-per-share beat. Management attributed the revenue decline to NIH funding uncertainties and export restrictions limiting China sales, despite raising full-year profit guidance and announcing the acquisition of SomaLogic.

The company also faced a $9.8 million DOJ settlement over cybersecurity whistleblower claims, compounding investor concerns. A new genomic profiling tool, TruSight Oncology 500 v2, was launched to enhance precision medicine capabilities, though analysts highlighted competitive pressures in the proteomics market. Analysts at RBC Capital and UBS raised price targets to $126 and $110, respectively, while Bank of America reiterated a Sell rating due to strategic execution risks and near-term margin dilution from the SomaLogic deal.

Short-term volatility persisted, with options implying an 8.4% post-earnings price swing. Cathie Wood’s ARK Invest added to its position in biotech and AI stocks, including Illumina, but broader market fears over tariffs and weak U.S. jobs data added downward pressure. The stock remains 29.16% below its 52-week high and 74.54% below its five-year peak.

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