In a dramatic turn of events, genetic testing company 23andMe’s stock (NASDAQ: ME) has witnessed a sharp plunge in its stock price following alarming news of its CEO’s resignation and speculation surrounding the company’s financial health. As investor sentiment nosedives, concerns about potential bankruptcy and leadership instability have taken center stage.

What Occurred? On March 22, 2025, 23andMe disclosed the abrupt resignation of CEO Anne Wojcicki, the company’s co-founder and most public-facing leader. The surprise action comes as losses grow and the balance sheet deteriorates, prompting market analysts to question whether the firm’s long-term business model can survive.

Stock Market Impact on 23andMe‘s stock

Stock Market Impact Immediately following the news, the stock of 23andMe dropped over 30%, hitting record lows. The market capitalization of the company has lost considerably, triggering panic among investors. Institutional and retail investors aggressively sold positions as trading volumes were huge.

Background: A Troubled Descent Once hailed as a pioneer in consumer genetic testing, 23andMe gained massive popularity for its direct-to-consumer DNA kits. However, in recent years, the company has struggled with:

• Diminishing consumer demand post-pandemic
• Mounting operating losses quarter after quarter
• Costly acquisitions, including Lemonaid Health
• Regulatory scrutiny over data privacy and health claims

Despite efforts to diversify into telehealth and pharmaceutical partnerships, revenue growth has stagnated.

Leadership Vacuum and Strategic Uncertainty Wojcicki’s departure leaves a significant leadership void. No permanent successor has been named, with CFO Steve Schoch stepping in as interim CEO. Analysts warn that without a clear strategic vision, 23andMe could lose credibility with both investors and partners.

Bankruptcy Concerns Grow, Analysts and investors are increasingly sounding the alarm on 23andMe’s solvency. The company ended Q4 2024 with less than $100 million in cash and burn rates exceeding $30 million per quarter . Without fresh capital or a major turnaround, Chapter 11 bankruptcy is becoming a real possibility. SEC filings further reveal the company’s declining financial position and increased risk disclosures.

Investor Sentiment: Bearish Outlook, Investor sentiment remains low. Short interest in ME shares has increased, reflecting bearish bets. Ratings agencies have downgraded the company’s credit profile, and analysts have reduced their price targets to sub-$0.50 per share levels.

What’s Next for 23andMe?

key developments to watch include:

1. Leadership Appointments – Will the board bring in turnaround expertise?
2. Strategic Pivot – Can the company shed unprofitable segments and refocus?
3. Financing Options – Is there appetite among investors or acquirers?
4. Bankruptcy Filings – Is a restructuring already underway behind the scenes?

23andMe stands at a crossroads. It was once the darling of Silicon Valley that would revolutionize personalized health, and now it has a long way to go to restore trust, stabilize operations, and discover a sustainable path forward. Whether it can rebound or become a cautionary tale of excess remains to be seen.

Key Takeaways

• CEO Anne Wojcicki has resigned, adding uncertainty to 23andMe’s future.
• Stock plunged over 30% amid fears of bankruptcy.
• The company is burning cash rapidly with no clear turnaround plan.
• Investors are increasingly pessimistic, with short interest surging.
• A major strategic reset or sale may be necessary to avoid collapse.