23andMe is considering splitting up its business into two entities—one focused on DNA-testing and the other on drug development—after the stock slid by as much as 10% after second quarter 2024 earnings. The proposed strategic shift arrives at a pivotal moment for 23andMe, a company that once boasted a market cap exceeding $6 billion and now trades for pennies as it faces a Nasdaq delisting.

The problem runs deeper than just missing quarterly forecasts. The split is being seen as a last-ditch attempt to regain stability in a market that has quickly soured on its business model. The rapid decline in share price highlights the volatile nature of the tech and biotech sectors as well as the critical need for agility in strategic planning. All told, there’s been a significant loss of trust in the company's leadership team triggering a massive crisis of confidence.

Jason Zweig's recent The Wall Street Journal article, "Picking a Stock for the Year 2048," explores a unique experiment where college students assemble a portfolio of stocks they can't touch for 25 years. The challenge raises questions about sustainability, investor expectations, and the importance of strong fundamentals and innovation for long-term success.