10X Genomics Stock: A Study in Market Contradictions

The recent performance of 10X Genomics (TXG) presents investors with a fascinating puzzle: how can a company deliver impressive quarterly results while its stock experiences a significant decline? This divergence between operational success and market sentiment has created a clear split in investor opinion, with a major institutional player making a substantial bet even as some analysts express caution.

Robust Quarterly Earnings Met With Market Apathy

On August 21st, 10X Genomics released its second-quarter 2025 financial results, which demonstrated considerable strength across key metrics. The company reported earnings per share of $0.28, dramatically surpassing consensus estimates that had projected a loss of $0.35 per share. Revenue performance was equally impressive, reaching $172.91 million—a 12.9% year-over-year increase that comfortably exceeded expectations.

Despite these strong fundamentals, the market response was unexpectedly negative, with shares declining 2.9% following the announcement. This reaction exemplifies the classic “sell the news” phenomenon where positive results trigger profit-taking rather than renewed buying interest.

Analyst Community Remains Divided

Wall Street’s assessment of 10X Genomics reveals significant disagreement among research firms. Goldman Sachs adopted a notably cautious stance, reducing its price target substantially from $7.50 to $6.50 per share. In contrast, Deutsche Bank maintained its $14.00 price target alongside a “Hold” rating.

The broader analyst consensus, compiled from 13 separate evaluations, presents a mixed outlook with an average “Hold” recommendation and a median price target of $13.54. The wide dispersion between the highest and lowest projections underscores the uncertainty surrounding the company’s near-term trajectory.

Institutional Investor Demonstrates Confidence

While some analysts remain skeptical, institutional investor PDT Partners LLC has demonstrated strong conviction in 10X Genomics’ long-term potential. During the first quarter, the firm increased its position by a substantial 85.7%, bringing its total holdings to approximately $5.75 million in value.

Should investors sell immediately? Or is it worth buying 10X Genomics?

This significant investment from a sophisticated market participant stands in stark contrast to the cautious analyst sentiment, suggesting differing perspectives on the company’s valuation and growth prospects based on varying investment time horizons.

Strategic Initiatives Amid Market Challenges

The company continues to advance its strategic objectives despite a challenging funding environment for biotechnology firms. 10X Genomics recently acquired Scale Biosciences for $30 million, a move designed to enhance its Chromium platform and expand access to single-cell analysis capabilities.

Additionally, the introduction of Xenium Protein represents another innovation—an advanced assay that enables simultaneous RNA and protein detection. These developments highlight the company’s commitment to technological advancement and market expansion.

However, management maintained a conservative outlook for the third quarter, projecting revenue between $140 million and $144 million. This cautious guidance reflects ongoing headwinds in the broader biotech funding landscape that continue to impact near-term performance expectations.

The coming quarters will prove crucial for 10X Genomics as investors watch for signs that the company can translate its operational strengths into sustained market appreciation and resolve the current contradictions between its financial performance and stock valuation.