If a stock is down more than 90% during the past year, you know there's something seriously wrong with the underlying business. Things have gotten so bad for biotech company Ginkgo Bioworks Holdings (NYSE: DNA) that it recently had to do a 1-for-40 reverse stock split to keep its share price up and stay listed on the New York stock Exchange. It has been in the midst of a stunning free fall as investors appear to have lost patience with the business.

Is the sell-off justifiable, or is this just an overreaction from investors? Let's take a look at why the stock is struggling so much and if there's any reason for investors to consider taking a chance on Ginkgo today.

There is a lot of potential in the long run for Ginkgo to help companies develop next-gen, bioengineered products. One of the more exciting opportunities for the business is working to analyze biological data with the help of artificial intelligence (AI) to bring products to market more efficiently. But for all the deals and partnerships that Ginkgo has announced in recent years, including working with big names such as , Merck, and Novo Nordisk, the results have simply been underwhelming. Ginkgo has continually posted losses, and its cash burn has been significant.

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Source Fool.com