This Biotech IPO Stock Just Took a Tumble, But Don't Give Up on It Yet
Metagenomi (NASDAQ: MGX) closed its initial public offering on Feb. 13, and its debut on the market has been looking rocky. Though shares of the gene-editing specialist were offered at a price of $15 per share, they are now trading at close to $12, and despite some choppy price action, they likely won't recover these losses anytime soon.
Nonetheless, there's more than one reason to not write this young biotech off just yet. Here's why.
Biotech stocks lose value after their IPO all the time, and it doesn't necessarily mean a company is doomed to fail or will suffer from poor sentiment for a prolonged period. As long as a player has enough money to fund its research and development (R&D) work to reach the next milestone, there's usually still a chance that success is possible.
Source Fool.com
