Should I Buy PacBio Stock in 2025? South Africa Investor Guide

What is PacBio?

How much is the PacBio stock?

The price of PacBio stock is rising this week. As of now, the price stands at $1.04 (USD), with a 24-hour decrease of 5.45% but a 6.12% gain over the past week. PacBio’s market capitalisation is $330.09 million, and its average daily trading volume over the last three months is 8.85 million shares. The company currently has no P/E ratio and pays no dividend, reflecting ongoing losses; the stock’s beta is 2.19, pointing to higher volatility compared to the broader market. Investors in South Africa should note the elevated price swings, which may present both risks and opportunities in this innovative genomics sector.

Our full analysis on the PacBio stock

Having rigorously examined PacBio’s (Pacific Biosciences of California, Inc.) latest financial disclosures and reviewed its stock trajectory across the past three years, we have synthesized insights from a full spectrum of sources—spanning advanced financial metrics, technical patterns, real-time market signals, and a comparative analysis of sector peers—through our proprietary analytics engine. The result is an objective yet forward-looking assessment of PacBio at a moment when biotechnology innovation stands at a global inflection point. So, why might PacBio stock once again become a strategic entry point into the dynamic world of genomics in 2025?

Recent Performance and Market Context

Over the last year, PacBio’s share price has experienced a pronounced re-consolidation, currently trading at $1.04 as of May 30, 2025, reflecting a -42.86% annual return but a recent positive weekly move of +6.12%. While this spells high volatility—underscored by a beta of 2.19—it also signals potential for substantial upward moves, a feature valued by tactically-minded investors. PacBio’s $330 million market capitalization now situates it as a nimble yet influential player amid shifting competitive sands, where smaller innovators often drive outsized returns.

Recent months have featured several constructive developments:

• Major Cost Reduction Initiative (April 2025): PacBio undertook a robust restructuring to trim $45–50 million in annual costs, strategically sharpening its focus on the core long-read sequencing market.
• Leadership Strengthening: Jim Gibson’s appointment as CFO (March 2025) enhances operational discipline and strategic vision.
• High-Value Partnerships: Notably, PacBio secured a sequencing collaboration with the Davos Alzheimer’s Collaborative and a licensing agreement with the University of Hong Kong to advance methylation detection—each reinforcing the company’s scientific standing and opening new revenue verticals.

This plays out against a favorable macroeconomic backdrop: the biotechnology and genomics sequencing sector continues to benefit from broadening clinical adoption, surging research investments in neurodegenerative diseases, and an international focus on the genomics of underrepresented populations. In South Africa and broader Africa, high-impact genomics tools are increasingly prioritised by both public health bodies and research institutes, indicating growing addressable demand.

Technical Analysis

Technically, PacBio’s chart suggests a rebuilt base with the potential for bullish breakout:

• Relative Strength Index (RSI, 14-day): 55.35—this neutral-to-bullish midpoint indicates an emerging buy zone, not yet overbought.
• MACD (12,26,9): Positive at 0.027, supporting an upward momentum reversal.
• Moving Averages:
• 20-day at $0.999 (bullish)
• 50-day at $0.988 (bullish)
• 100-day at $1.037 (bullish)
• 200-day at $1.084 (still a bearish signal, but within striking distance)
• Key Support: Firm technical base at $0.91, suggesting limited downside from current levels.
• Resistance: Major bullish target at $2.34; a decisive breakthrough here could catalyse accelerated gains.

While the recent “death cross” (MA50

Fundamental Analysis

On a fundamental level, PacBio stands out for its differentiated position in high-fidelity (HiFi) long-read sequencing—a domain where technology leadership is crucial as genomic precision becomes ever more indispensable. Despite a slightly lower Q1 2025 revenue ($37.2M vs. $38.8M a year earlier), the company posted a record in consumable sales ($20.1M, up from $16.0M), highlighting strong recurring revenue momentum even as hardware sales normalize.

Recent financial restructuring led to a one-off GAAP net loss of $426.1M, predominantly due to $381.8M in restructuring charges. Stripping out these exceptional costs, the business is aligned with consensus expectations and better positioned for margin improvement from here. PacBio’s topline guidance for 2025 ($155–170M) remains robust, putting it on track for medium-term stabilization and growth.

Although there is no current price/earnings (P/E) ratio due to operating losses, the prevailing price-to-sales (P/S) ratio and the consensus analyst target of $2.03 (+95% upside) indicate that the stock’s current valuation adequately prices in risk, while offering considerable rerating potential as execution improves.

• Structural strengths: Industry-leading innovation, strong brand among top-tier research institutions, and a defensible technology moat in long-read sequencing.
• Strategic direction: Accelerating expansion into clinical applications, neurosciences, and emerging markets, with South African research and health sectors representing high-value growth frontiers.

Volume and Liquidity

PacBio attracts a three-month average daily trading volume of 8.85 million shares, an exceptionally robust level for a company of its size and market cap. Such sustained liquidity signals ongoing institutional interest and allows for dynamic price discovery—crucial for investors seeking efficient entry and exit.

With a share float of 264.16 million out of 300.08 million shares outstanding, liquidity is more than sufficient for sizeable portfolio allocations without excessive price impact, ensuring flexibility for both retail and institutional participants.

Catalysts and Positive Outlook

Several clear catalysts position PacBio for renewed upside:

• Product Innovation: Consistent global adoption gains for its Revio and Vega sequencing platforms, widely seen as state-of-the-art for clinical and research genomic applications.
• Recurring Revenue Upside: Record consumables sales in Q1 2025 point toward a sustainable shift toward high-margin, repeat-purchase business—a key ingredient for profitable scale.
• Strategic Partnerships: The Davos Alzheimer’s Collaborative partnership and the Hong Kong University methylation project both create significant visibility and establish PacBio at the vanguard of precision medicine.
• Restructuring Payoff: $45–50M in annual cost savings will manifest in margin expansion and accelerate the drive toward cash-flow break-even by 2027.
• Sectoral and Regulatory Tailwinds: Increasing regulatory clarity and renewed research grants—especially in genomics-rich environments such as South Africa—underscore a supportive operating environment.
• ESG and Diversity Expansion: Targeting broader population genomics contributes to global scientific equity and should unlock further grants and partnership opportunities.

Combined, these elements set the stage for PacBio’s transition from speculative growth to operational discipline—a transformation that historically fosters sizable shareholder value in the biotechnology sector.

Investment Strategies

Given current conditions, multiple time horizons merit consideration:

• Short-Term (1–3 months):
• Technical setup suggests potential for a tactical rebound, with price anchored above solid support ($0.91) and bullish MACD/RSI crossovers.
• Likely catalyst: further operational updates from the post-restructuring roadmap, or new partnership announcements. The stock appears to represent an excellent trading opportunity for momentum-focused investors looking to exploit volatility and strong liquidity.
• Medium-Term (6–12 months):
• The anticipated inflection in recurring revenue and execution on cost-saving measures support a valuation rerating narrative.
• Analyst consensus price targets ($2.03–$2.25) frame a base case for significant appreciation from current levels—especially as positive news on clinical adoption or incremental global contracts emerges.
• Long-Term (24–36 months):
• Structural leadership in long-read sequencing, defensible IP, and an increasingly global revenue base all point toward sustained competitive advantage.
• The firm trajectory toward cash-flow break-even by 2027 further underpins the case for patient, conviction-based positioning, especially for investors seeking exposure to the next generation of genomics leaders.

Ideal entry appears to present itself now—at a historical technical low and ahead of multiple visible catalysts—suggesting the stock may be entering a new bullish phase.

Is It the Right Time to Buy PacBio?

Synthesizing the latest financial performance, technical structure, and accelerating business momentum, PacBio emerges as a compelling opportunity within a sector that sits at the core of future healthcare and scientific discovery. The ongoing operational transformation has already delivered record-high recurring revenue, while strategic partnerships and product innovation open new doors in both research and clinical spheres.

With trading volumes reflecting renewed institutional interest, valuation metrics suggesting ample upside, and key restructuring milestones now largely de-risked, the stock appears set for a period of substantial value creation. Analyst consensus sees a near-doubling of the price as a realistic mid-term scenario, underlining that the fundamentals justify renewed investor interest.

For South African and global investors seeking exposure to a pioneering biotech franchise with a clear path to margin recovery, enhanced strategic discipline, and breakthrough international partnerships, PacBio seems to represent an excellent entry point at a time when the genomics revolution is gaining unprecedented momentum.

As we look into the second half of 2025 and beyond, PacBio’s differentiated technology, innovative commercial execution, and operational focus combine to create an exceptional opportunity for investors with an eye on the transformative future of precision medicine and genomic research.

How to buy PacBio stock in South Africa?

Buying PacBio (Pacific Biosciences of California, Inc.) shares from South Africa is now simple and secure, thanks to regulated online brokers. Investors can choose between two main methods: buying shares outright (“spot buying”) to fully own the stock, or trading Contracts for Difference (CFDs) to speculate on price movements with the possibility of using leverage. Each approach has its own features, fees, and risk profiles. Before you get started, it’s essential to consider which method suits your goals best—see our detailed broker comparison further down this page for expert guidance.

Spot buying

When you buy PacBio shares “for cash,” you become the direct owner of the shares on the NASDAQ exchange. This method is generally straightforward—your order is placed via a regulated broker, and the shares are held in your name. Most brokers charge a fixed commission per trade (typically in USD; around $5–$10 per order, which is roughly R90–R180* as of recent rates).

Example

If the PacBio share price is $1.04 (about R19.10), with a $1,000 investment you could buy approximately 957 shares, after a $5 commission.
Gain scenario:
If the share price climbs by 10% to $1.14, your holdings are now worth $1,100.
Result: +$100 gross gain, or +10% on your investment.

CFD trading

CFD (Contract for Difference) trading enables you to speculate on the price of PacBio shares without owning the underlying shares. Here, your broker offers you exposure through a derivative, often with leverage—meaning you can control a larger market position with a smaller upfront stake. Instead of a flat commission, fees typically include the spread (difference between buy and sell prices) and overnight financing costs for held positions.

Example

You open a CFD position on PacBio with $1,000 and apply 5x leverage, giving you $5,000 in market exposure.
Gain scenario:
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 profit on your $1,000 margin (excluding fees), demonstrating the amplified effect of leverage.

Final advice

Before investing, it’s crucial to compare each broker’s fees, terms, and regulatory protections, as these can impact your returns—see our comparator below for detailed options available in South Africa. Whether you opt for spot buying to build long-term wealth or CFDs for tactical trading, the best method depends on your investment objectives, risk tolerance, and timeline. Take the time to review your choices and make informed, confident investment decisions.

All examples are provided in USD, with exchange rates approximately R18.40 = $1 USD. Fees and share counts are estimates for illustration purposes only.

Our 7 tips for buying PacBio stock

The latest news about PacBio

PacBio stock gained 6.12% in the past week, outperforming the sector amid positive technical signals. This upward momentum comes despite elevated volatility (beta 2.19), with technical analyses such as the RSI at 55.35 and a positive MACD, both indicating a buy signal. The 20, 50, and 100-day moving averages have all turned supportive, reinforcing a short-term bullish trend, though the 200-day moving average still suggests overall caution. The recent technical “death cross” has been offset by this positive momentum, creating entry opportunities for risk-tolerant investors, including those from South Africa monitoring US biotech exposure.

Recent financials show Q1 2025 revenues in line with expectations, with a record high in consumables sales. While total revenue for Q1 stood at $37.2 million (slightly below Q1 2024’s $38.8 million), consumables reached an all-time quarterly high of $20.1 million – a particularly positive indicator because recurring consumables sales drive ongoing revenue streams. Services revenue almost doubled year-on-year as well. This trend is relevant for South African institutions assessing the viability of PacBio as a supplier or partner within regional genomics initiatives, where reliability and consumable supply are strategic factors.

A major cost-reduction and restructuring initiative was launched in April 2025 to ensure long-term operational sustainability. The company aims to save $45-50 million annually, focusing its resources on its core long-read sequencing technologies. This move is seen as a long-term positive by market participants and aligns PacBio with the global shift towards more scalable, efficient genomics research. The restructuring provides reassurance for African research hubs and healthcare partners who require strong, stable suppliers of sequencing platforms, especially as PacBio aims to expand in underrepresented regions.

PacBio’s technology is gaining international recognition, with partnerships that echo potential regional relevance for ZA’s biomedical sector. Key developments include PacBio’s selection by the Davos Alzheimer’s Collaborative as a sequencing partner and a new licensing deal with the University of Hong Kong to enhance methylation detection. These advances demonstrate PacBio’s innovation leadership and bolster its credibility for South African research and diagnostic centers looking for cutting-edge genomics solutions, especially in neuroscience and precision medicine.

Analyst consensus remains moderately bullish with a strong upside potential, targeting gains of up to 95% from current levels. Sixteen analysts currently cover the stock, with none recommending a sell; ten recommend a buy, and six advise holding. The consensus target price stands at $2.03, nearly double the current price. This optimistic outlook is particularly noteworthy for South African investors seeking high-growth opportunities in the US biotechnology sector, as PacBio’s global strategy and innovations in sequencing position it as a long-term contender in genomics – a field seeing increased focus in regional healthcare and academic strategies.

FAQ

P. Laurore

Finance expert

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.