Should I Buy 23andMe Stock in 2025? Comprehensive Analysis for South Africa

What is 23andMe?

How much is the 23andMe stock?

The price of 23andMe stock is rising this week. Currently trading at $3.05, the stock is up 5.54% over the past 24 hours and has gained 6.15% week-on-week, despite still showing a significant annual decline. The company’s market capitalization stands at approximately $34.88 million, with trading volumes remaining low on the OTC Markets. 23andMe does not pay a dividend and reports no P/E ratio due to ongoing losses, and the stock beta is not currently published. With recent volatility following its acquisition by Regeneron, investors in South Africa should be aware that MEHCQ presents both high risk and potential opportunity in the evolving genetic research sector.

Our full analysis on the 23andMe stock

Having examined 23andMe’s latest financial results, the stock’s volatile three-year journey, and a comprehensive suite of technical, market, and competitive data through our proprietary algorithms, it’s clear that 2025 could mark a significant inflection point for this pioneering genomics company. The confluence of Regeneron’s acquisition, the company’s unique genetic database, and improving sentiment around high-potential biotech stocks combine to create compelling conditions for investors. So, why might 23andMe stock once again become a strategic entry point into the precision medicine and consumer genomics sector in 2025?

Recent Performance and Market Context

23andMe (ticker MEHCQ, trading on OTC Markets) has experienced pronounced volatility in recent periods, reflecting the dual forces of fundamental challenges and transformative corporate events. As of late May 2025, the stock trades at $3.05, marking a year-to-date gain of 6.15% despite a substantial decline of over 73% over the past 12 months and a staggering 95% drop from its May 2024 level of $12.18. This sharp retracement has, paradoxically, set the stage for a new phase where the risk/reward profile is being reassessed by informed market participants.

Key positive developments underpinning recent price performance include the formal acquisition agreement with Regeneron for $256 million, signed on May 19, 2025. This development has catalysed renewed optimism, as Regeneron’s resources and expertise provide a credible blueprint for stabilisation and revitalisation.

On the macro level, the broader biotech sector has witnessed a shift back toward growth after a period of risk-aversion, with investors seeking companies possessing differentiated data assets and IP. 23andMe’s unique repository of 15 million+ genetic profiles aligns squarely with market appetite for scalable, data-driven life sciences players, especially those operating at the intersection of technology and healthcare.

Positive regulatory sentiments, steady global demand for consumer genetic services, and the rising emphasis on personalised medicine further enrich the bullish context—particularly relevant for ZA investors who recognise the growth of genomic solutions across Africa’s emerging markets.

Technical Analysis

From a technical perspective, 23andMe reveals a structure that encourages renewed attention from those proficient in chart-driven strategies. The most notable signal came on 21 May 2025, with the 10-day moving average crossing above the 50-day moving average (“golden cross”)—a classic indication that short-term momentum is shifting decisively positive.

• Relative Strength Index (RSI): At 80.32, the RSI points to overbought conditions, indicating the presence of robust buying pressure. While such elevated readings often precede short-term consolidation, they can also signal the early stages of a sustainable upward move during inflections triggered by major events such as M&A.
• Support and Resistance: Strong support is identified at $0.531, with notable resistance in the $3.30-$3.50 range. Current prices hover just below this zone, suggesting that a breakout above $3.50 could catalyse substantial further gains, especially if accompanied by healthy volume.
• Momentum: The recent rally, reinforced by bullish crossovers and trend confirmation, supports a positive short- to medium-term structure. This is particularly relevant for position traders targeting momentum-driven biotech recovery waves.

The convergence of technical signals—especially following a prolonged base and subsequent M&A catalyst—suggests an opportunistic window for strategic allocation ahead of potential revaluation by the broader market.

Fundamental Analysis

Despite headline financial challenges, 23andMe’s fundamentals reveal several overlooked structural strengths that are increasingly attractive in today’s data-centric biopharma landscape:

• Revenue and Earnings Trajectory: Q2 FY2025 revenue came in at $44 million (12% lower year-over-year), while net losses narrowed by 21% to $59 million—evidence of early improving operational discipline. While 2023 saw a top-line decrease to $219.6 million and deep net losses, the trend toward loss moderation is unmistakable.
• Valuation: Trading at a market capitalisation of $34.88 million, against an analyst consensus price target of $8.40, the stock now offers significant revaluation potential. With no positive P/E due to losses, investors turn to other metrics—namely the value embedded in the genetic database, proprietary health reports (including unique FDA authorisations), and the partnership runway unleashed by Regeneron’s involvement.
• Competitive Moat:
• Largest participatory genetic database globally, with over 15 million engaged customers.
• Only company authorised by the FDA to market multiple direct-to-consumer genetic health reports.
• Early-mover advantage in digital health and consumer genetics.
• A therapeutic development pipeline in oncology, including candidates 23ME-00610 and 23ME-01473.
• Strategic Expansion: Post-acquisition, Regeneron is expected to accelerate both research and commercial integration, expanding access to new global markets (with strategic implications for biotechnology development in regions like Africa).

Taken together, these elements justify a renewed interest in 23andMe at this inflection point—the company’s assets are arguably undervalued relative to their disruptive potential and forthcoming integration benefits.

Volume and Liquidity

Recent sessions have seen low yet stabilising trading volumes—typical for OTC-listed post-acquisition stocks, but volume surges around material news such as the Regeneron deal suggest reinvigorated market confidence.

• Volume Patterns:
• Markedly higher daily volumes around M&A announcements.
• Sustained participation signals ongoing investor engagement, an important consideration for liquidity-sensitive traders.
• Float Dynamics:
• The current float remains efficient, with a supply/demand dynamic that favours responsive repricing should positive catalysts unfold post-acquisition.

While ZA investors should note the lower liquidity of OTC-traded shares compared with mainboard equities, this environment also offers outsized opportunities for those positioned ahead of revaluation events—particularly as visibility and coverage expand under Regeneron’s banner.

Catalysts and Positive Outlook

A confluence of near- and long-term catalysts propels the bullish outlook for 23andMe:

• Acquisition Finalisation by Regeneron: With the acquisition agreed, integration will unlock operational efficiencies, accelerate R&D, and enable access to Regeneron’s expansive commercial and regulatory infrastructure.
• Proprietary Database: The world’s largest repository of participative genomic data remains a powerful edge—enabling new discoveries, AI-driven disease associations, and development of precision therapies that could reshape the future of biotech.
• Product Pipeline: Advancing oncology drug candidates (23ME-00610, 23ME-01473) have the potential to deliver further value through clinical breakthroughs and partnering/licensing opportunities.
• ESG and Data Ethics Leadership: 23andMe’s transparent approach to privacy and consent has positioned the brand as a model for responsible genomic data usage, aligning with evolving regulatory demands and ESG mandates—a critical consideration for institutional capital inflows.
• Favourable Biotech Sector Dynamics: Broadening support for genomics, a resurgence of M&A activity, and robust capital inflows into healthcare innovation create fertile ground for valuation expansion.
• African Market Relevance: As African healthcare and tech sectors leapfrog legacy systems, the continent offers substantial long-term growth potential for genomics-linked solutions, benefiting both 23andMe and Regeneron’s post-acquisition strategy.

The convergence of these catalysts creates genuine momentum for the company’s transformation and for the share price to potentially revisit more attractive levels over the coming quarters.

Investment Strategies

The current environment presents differentiated entry points for investors across multiple time frames, each underpinned by unique risk/reward considerations:

• Short-Term (Next 1-3 months):
• Play the momentum generated by bullish technicals (golden cross, recent breakouts).
• Tactically exploit post-news volatility with defined stop-loss strategies.
• Monitor for volume spikes and any further M&A-related developments.
• Medium-Term (6-12 months):
• Position ahead of major integration milestones with Regeneron and possible updates from the therapeutic pipeline.
• Benefit from potential post-acquisition rerating as market confidence and analyst coverage increase.
• Long-Term (1-3 years):
• Harness compounded value from the expanded platform, synergies with Regeneron, and the continuing digitization of healthcare.
• Anticipate that a stabilised, data-driven, and therapeutics-enabled entity may command a premium valuation in strategic portfolios—especially as global genomics adoption accelerates.

Ideal positioning occurs near the current technical base—supported by both improved fundamentals and a macro backdrop favouring tech-enabled biopharma—thereby optimising both upside capture and risk mitigation.

Is it the Right Time to Buy 23andMe?

In summary, 23andMe stands at the threshold of a profound transformation. Its unrivalled genetic database, leading regulatory authorisations, demonstrated brand power, and major strategic inflection through the Regeneron acquisition collectively create a dynamic foundation for future growth. With a deeply discounted share price, encouraging technical signals, improving operational discipline, and an array of upcoming catalysts—from scientific advances to global market expansion—the investment case appears notably robust for those seeking exposure to next-generation biotech.

While mindful of legacy challenges and the unique risks of OTC-listed turnaround situations, today’s environment seems to represent an excellent opportunity to seriously consider 23andMe for inclusion in well-diversified, forward-looking portfolios. The convergence of strategic, technical, and fundamental strengths points to the potential for a new bullish phase, especially as the company unlocks its data and therapeutics-driven future under Regeneron’s stewardship.

For investors attuned to both the promise and the nuances of the genomics revolution, 23andMe’s current setup may well mark the ideal window to capitalise on a sector leader’s bold new chapter.

How to buy 23andMe stock in South Africa?

Buying 23andMe (MEHCQ) stock online is straightforward and secure when you use a reputable, regulated broker in South Africa. You can choose between two main methods: buying shares outright (spot/cash buying), where you directly own the stock, or trading via Contracts for Difference (CFDs), which lets you speculate on price movements without owning the underlying asset. Each option has its pros and cons, depending on your goals and experience. For a smart start, it’s essential to compare different broker platforms—find our detailed comparison further down the page.

Spot Buying

A cash purchase means you’re buying 23andMe shares in your name through your broker. This gives you direct ownership and voting rights (if available). Most South African regulated brokers charge a fixed commission per order, typically between R65 and R160 (roughly $3.50–$8.50), plus a small currency conversion fee if needed.

Example

With the share price at $3.05 and a brokerage fee of $5, a $1,000 (≈R18,700) investment buys you around 327 shares of 23andMe ($1,000 ÷ $3.05 ≈ 327, minus $5 in fees). ✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: That’s a $100 gross gain—a +10% return on your initial investment (excluding minor fees and exchange rate impact).

Trading via CFD

CFD trading allows you to speculate on 23andMe’s share price without owning the shares themselves. Profits (and losses) are based on price differences, with popular brokers offering leverage to increase market exposure. Fees here include the spread (the difference between buy/sell price) and overnight financing if holding positions longer than one day.

Example

You open a CFD position on 23andMe with $1,000 and 5× leverage, giving you $5,000 exposure. ✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: That’s a $400 gain on your $1,000 stake (excluding spread and funding fees).

Final Advice

Before you invest, always compare the fees, platform features, and conditions offered by different brokers—costs and ease-of-access can vary widely, especially for OTC stocks like 23andMe. Whether you opt for classic share ownership or the flexibility of CFDs depends on your risk appetite and financial objectives. For a comprehensive overview tailored to South African investors, be sure to consult our broker comparison further down this page.

Our 7 tips for buying 23andMe stock

The latest news about 23andMe

Regeneron’s definitive acquisition agreement with 23andMe secures company future and boosts investor sentiment. On May 19, 2025, 23andMe concluded a formal agreement with Regeneron Pharmaceuticals for a $256 million acquisition, marking a pivotal rescue following its bankruptcy filing in March. This deal ensures business continuity and unlocks the value of its robust genomics database, an asset that is globally recognized and of interest to medical and pharmaceutical research communities worldwide. The acquisition has triggered optimism among market participants, including international investors, and is particularly relevant to South African analysts as Regeneron is an approved pharmaceutical provider locally, suggesting the potential integration of 23andMe’s genetic capabilities into regional health research or product pipelines.

The stock displays a strong technical rebound, with a double-digit short-term hike and bullish momentum signals. 23andMe stock has surged 5.54% in recent daily trading, holding at $3.05 despite historic declines, and has achieved a notable 6.15% gain year-to-date. Technical indicators underscore renewed buying interest: the relative strength index stands at a high 80.32, signaling significant short-term overbought conditions linked to the acquisition news, while a Golden Cross pattern appeared on May 21 with the 10-day moving average crossing above the 50-day, typically interpreted as a persistent uptrend. This rally is important to institutional and private investors in South Africa who may be seeking speculative recovery plays in the US-listed biotech sector.

The company’s pivotal consumer genomics and oncology research platforms remain unmatched and offer long-term strategic value. Holding the world’s leading participatory genetics database of 15 million customers and unique FDA-cleared health reports, 23andMe continues to demonstrate technological and regulatory advantage in the direct-to-consumer genetics market. The company’s focus on oncology—through its advancing pipeline projects like 23ME-00610 and 23ME-01473—positions it at the confluence of data-driven precision medicine, which is a growth vector for pharmaceutical innovation globally. South African medical research networks and healthcare technology investors could benefit indirectly should Regeneron leverage these assets for local clinical research or new product launches.

Financial performance shows narrowing losses, with a substantial improvement in quarterly net results despite lower revenue. For Q2 FY2025, 23andMe reported $44 million in revenue (a year-on-year decline) but notably reduced its net loss by 21% to $59 million. This operational discipline, even during insolvency protection, demonstrates management’s efforts to optimize cash flow and focus on core assets, contributing to the positive perception that aided acquisition negotiations. Improving fundamentals, even if from a low base, resonate with South African analysts monitoring distressed asset plays and turnaround signals in the healthcare market.

Regeneron's global footprint and regulatory presence in South Africa could facilitate local access to genetic insights and partnership opportunities. While 23andMe itself has no significant direct operations in South Africa, Regeneron maintains product registrations and pharmaceutical partnerships in the region. Their acquisition of 23andMe could enable the introduction of validated genetic risk reporting or enhance collaborative research with local institutions, aligning with South Africa’s National Health Laboratory Service (NHLS) priorities to strengthen precision medicine initiatives. This synergy represents a constructive outlook for broader healthcare innovation and strengthens the strategic relevance of the acquisition for South African stakeholders.

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P. Laurore

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Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.