When a caller asked for the Mad Money host’s take on BillionToOne, Inc. (NASDAQ:BLLN) during the lightning round on August 26, Jim Cramer commented:
You know, we did a big piece on this, and we decided, you know, it’s a pretty darn good company. I know it’s expensive, but you know what? Look, genetic diagnostic, I mean, that’s what I used to go to Danaher for. I think you got a good one.
Cramer’s view comes as the company continues to post rapid growth, but its valuation leaves the stock exposed if that growth slows. It reported second-quarter revenue of $109.4 million, up 64% from $66.6 million a year earlier. Gross profit rose to $77.1 million from $43.5 million, while gross margin increased to 70% from 65%. Income from operations reached $5.5 million, compared with an operating loss of $1.6 million a year earlier. Furthermore, prenatal clinical testing revenue reached $94.2 million, up 55% year over year, while oncology revenue increased 176% to $13.7 million. The company reiterated 2026 revenue guidance of $450 million to $465 million, representing 48% to 52% growth from 2025.
Bear Case
The main risk is whether BillionToOne, Inc. (NASDAQ:BLLN) can sustain enough growth to justify its valuation. Shares fell sharply after the second-quarter results despite the revenue growth because the company reiterated rather than raised its full-year revenue outlook. The reaction highlights how much growth investors are already pricing into the stock. Reimbursement is another concern. Management said on the August 5 earnings call that more than $10 million of claims had been held during the quarter while it waited for national payers to implement its codes in-network. Management expects the issue to resolve during the second half of 2026, but further delays could slow cash collections.
Additionally, oncology also remains a relatively small business despite its rapid growth. The company has leased a 62,000-square-foot oncology production facility, with production expected by the end of 2027 and eventual capacity of approximately 5,000 tests per day. The investment could support future expansion, but prenatal testing remains the company’s primary revenue driver. Cramer flagged similar valuation and volatility risks in November 2025, when he said the stock was expensive despite its growth and emerging profitability. He recommended building a position gradually rather than buying aggressively.
Institutional Positioning and Short Interest
Institutional positioning has improved. As per Insider Monkey’s tracking of more than 1,000 hedge funds, 23 hedge funds held BLLN in the second quarter, up from 14 in the first quarter. Its short interest stands at approximately 7.46% of the float. BillionToOne, Inc.’s (NASDAQ:BLLN) rapid growth, expanding margins, and transition to operating profitability support Cramer’s bullish view. But the stock still carries a valuation that leaves investors exposed to any disappointment in growth or reimbursement. At the time of writing, the stock trades at nearly 135x TTM earnings. For now, the investment case rests on a strong diagnostics business continuing to deliver exceptional growth while expanding oncology beyond its relatively small revenue base. It can offer upside if execution remains strong, but it also leaves the shares vulnerable to a sharp re-rating if expectations move ahead of fundamentals.
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