Ginkgo Bioworks: Buy, Sell, or Hold?
In a world where biotechnology is always becoming more sophisticated, manufacturing-oriented biotech businesses like Ginkgo Bioworks (NYSE: DNA) are upping the ante by becoming larger and more capable of handling complex asks from customers. But doing that requires a lot of capital expenditures, and from the standpoint of investors, big capex committed into an area at an industry's frontier means big risks in buying the stock.
So what's the right move? Let's go through the arguments for selling this stock first, then we'll discuss why it might actually be worth buying more or holding it, depending on your inclination.
There are a handful of reasons why Ginkgo isn't a great investment for everyone. The core issues are that it's a biotech stock, which makes it risky, and it's pursuing a highly capital-intensive business model that hasn't been proven to work, which makes it even riskier.
Source Fool.com
