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Avidity’s Stock Surge: Novartis Acquisition Rumors?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 10/27/2025, 5:05 pm ET 10/27/2025, 5:05 pm ET | 5 min 5 min read
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Avidity Biosciences Inc. stocks have been trading up by 42.42 percent, fueled by promising FDA designations and results.

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Live Update At 17:04:58 EST: On Monday, October 27, 2025 Avidity Biosciences Inc. stock [NASDAQ: RNA] is trending up by 42.42%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview: Avidity’s Recent Earnings

Traders often face the challenging decision of whether to close a position at a loss or risk further decline. It can be tempting to hold on, hoping for a turnaround, but this approach can lead to significant losses. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” This principle reminds traders that closing a trade at breakeven or a small loss is more prudent than holding a position that could lead to larger losses. By recognizing when to exit, traders can protect their capital and live to trade another day.

Avidity Biosciences Inc. presents an intriguing financial landscape. At first glance, revenue stands at approximately $10.89 million, translating to a modest value per share. Their income statement shows EBITDA at an overwhelming negative of $170 million, hinting at ongoing challenges yet notable investment which may yield potential long-term gains.

Investing activities have pointed in a healthier direction, with significant income from short-term investments, balancing the cash outflows reported in other areas. The emphasis on innovation is apparent given their considerable research expenses, accompanied by cash flow strategies and capital expenditure adjustments, further substantiating their aim for growth amidst financial strain.

The company shows robust financial strength, emphasized by an impressive current ratio. With minimal debt encumbering equity, Avidity stands on solid financial ground despite reported losses from continuous operations. The pathway to profitability rests on strategic play execution, leveraging Avidity’s recent merger developments.

Market Ramifications of Novartis Acquisition Talks

Excitement reigns supreme regarding Avidity Biosciences after the disclosure of their merger talks with Novartis. Shares leaped on this revelation, attracting both investor attraction and skepticism. The buyout price, exceeding the current stock cost, suggests elevated expectations toward future valuations within the biotechnology sphere.

Such acquisitions are not mere transactions but signal confidence in Avidity’s innovation pipeline—particularly their focus on Duchenne muscular dystrophy treatments. However, the unfolding of these talks plays a pivotal role in investor sentiment and market expectations, aligning them with potential strategic advancements and operative focus under Novartis leadership.

In reflection, the broader biotech market anticipates cascading impacts. This could lead to a shifting competitive landscape as larger pharmaceutical and biotech entities race to scoop promising ventures. For Avidity, this could mean amplified investment and accelerated drug development, fostering broader financial and market optimism. The story of Avidity Biosciences reflects keen business acumen, paving the way for potential long-term success amidst short-term financial pressures.

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Conclusion

Recent murmurs around Avidity Biosciences and potential acquisition by Novartis illuminate a transformative horizon for the company. This soaring attention marks a significant trajectory shift with impactful ramifications across the biotech market spectrum. However, it’s essential for traders to proceed with caution. As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This quote reminds traders to focus on strategic decisions rather than impulsive actions driven by fear of missing out. The staged progression towards strategic enhancement remains rich in complexity, poised now for controlling dynamics as Avidity tethers closely with awaited developments. Each financial metric and strategic decision contributes to Avidity Biosciences’ evolving story—a journey underscored by resilience and ambition.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”