We recently compiled a list of the 11 Reddit Stocks with Biggest Upside Potential. In this article, we are going to take a look at where 23andMe Holding Co. (NASDAQ:ME) stands against the other Redditor-approved stocks.
Paul Hickey, Bespoke co-founder, together with Dana D’Auria, Envestnet co-chief Investment Officer, joined CNBC’s ‘Closing Bell: Overtime’ on November 12 to discuss the market’s reaction to the election results and earnings. Paul Hickey believes that the AI bull market is likely to continue now.
This recent conversation centered around the key forces to watch in the current political and economic landscape, particularly in light of potential energy impacts from Ukraine, shifts in Middle Eastern policies, and possible market effects from trade policies with China. Hickey thinks that as President-elect Donald Trump’s cabinet begins to take shape, it will provide clearer insights into future expectations. He emphasized that while election results can lower barriers to the market and reduce speed bumps, their impact is often overstated. He notes that over the past 16 years, the market has shown strong performance under different administrations, with annualized returns of 16.3% during both Barack Obama’s and Donald Trump’s first terms, and 14% under Joe Biden. This consistency, according to Hickey, suggests that market returns have remained relatively stable despite varying political landscapes.
The conversation also highlighted the ongoing AI bull market, which has been broadening since the summer and is expected to continue. The S&P 500 recently closed above 6,000, reflecting positive momentum in the markets, including gains in the NASDAQ. There was a discussion about how a sweeping victory for one party could have been perceived as detrimental to equities; however, Republicans achieved this outcome and equities responded positively. To maintain this momentum, D’Auria suggested that Republicans might need to exercise more fiscal responsibility. The implication is that a single party cannot implement all its plans without consideration of fiscal implications.
D’Auria thinks that as tax cuts from 2017 are likely to be extended under Republican leadership, inflation concerns may arise due to higher tariffs and increased government spending. The Republican stance thus far has been viewed as pro-business, which is reflected in current market performance. However, a potential challenge lies ahead; she is of the idea that stocks are now being priced with expectations of a low regulatory environment. This regulatory landscape will be crucial for sustaining market growth moving forward.
As the market continues to react positively to political developments and the ongoing AI bull market, investors should consider focusing on stocks with significant upside potential.
Methodology
We sifted through threads to compile a list of 30 trending stocks with high upside potentials. We then selected the 11 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laboratory filled with researchers in lab coats working on genetic testing.
23andMe Holding Co. (NASDAQ:ME)
Average Upside Potential as of November 11: 85.02%
23andMe Holding Co. (NASDAQ:ME) provides genetic testing services to help people understand their ancestry, health risks, and medication responses. Its CLIA-certified lab extracts DNA from cells in saliva samples, then the lab processes the DNA on a genotyping chip that reads hundreds of thousands of locations in the genome. This genetic data is analyzed to generate personalized reports based on well-established scientific and medical research.
A very recent development at the company includes a significant restructuring, involving a 40% reduction in its workforce. This decision aims to streamline operations and reduce costs. The company will incur up to $12 million in restructuring costs but expects to realize annualized savings of over $35 million. As part of this restructuring, it will also cease its therapeutics development efforts and explore strategic options for these assets, including licensing agreements, asset sales, or other transactions.
Despite these challenges, it remains focused on its core consumer business and research partnerships. The company plans to prioritize recurring revenue through its subscription business to drive future growth. However, for FQ2 2025 revenue decreased by ~12% year-over-year to $44 million, primarily due to lower consumer and research services revenue.
In FQ2 2025, it launched the first AI chatbot available to 23andMe customers, “DaNA,” to highlight key health and other important results for customers, making actionable insights easier to identify. 23andMe Holding Co. (NASDAQ:ME) remains committed to its core mission of empowering individuals through genetics.
Overall ME ranks 6th on our list of the Redditor-approved stocks with biggest upside potential. While we acknowledge the potential of ME as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
