Should You Buy the Dip on Ginkgo Bioworks Stock?
In the last three months, Ginkgo Bioworks' (NYSE: DNA) shares fell by 50%. To the enterprising investor, such a decline by the Boston-based biotech specialist isn't necessarily a sign of disaster, and in fact could well be a sign of an opportunity to buy shares at a discount -- assuming those shares can be reasonably expected to rise again in the future.
Is that the case with this company, or would it be better to look for opportunities elsewhere? Let's dive in and figure it out.
On May 9, Ginkgo reported its first-quarter earnings, and, by some measures, it missed the mark. Revenue from its biofoundry segment was $28 million, 18% less than a year prior. While it succeeded in adding 17 new cell engineering programs within the foundry segment, indicating that there's no lack of other biopharma businesses interested in collaborating with it for a fee, it's still deeply unprofitable.
Source Fool.com
