3 Reasons Why Cathie Wood Is Buying Ginkgo Bioworks Stock Hand Over Fist
There's no rule that says you should be copying the trades of famous investors and portfolio managers, but sometimes they have insights about what companies could make it big that are at least worthy of your attention. For instance, Ark Invest's Cathie Wood is loading up on shares of Ginkgo Bioworks (NYSE: DNA), making two purchases on May 11.
Wood is a longtime fan of the stock, and her ARK Innovation ETF (NYSEMKT: ARKK) owns 10.3% of the company, which represents 1.6% of the fund's holdings. And while one can only speculate about exactly what made her pull the trigger to buy more shares now, there are (at least) three reasons that probably motivated her choice.
Ginkgo's business model is to help its clients with the tricky tasks of designing, culturing, and harvesting the valuable outputs of bioengineered microorganisms like yeast at industrial scale. Management's term for that model is "biofoundry," which is a direct reference to a similar workflow in the semiconductor industry wherein chip foundries are responsible for manufacturing the designs that customers (the chip designers) pay to have made.
Source Fool.com
