Twist Bioscience Has Gained 186% in 2020. Is the Synbio Stock a Buy?

Increasing losses, additional stock dilution, and a lack of financial details in newly announced collaborations have proven no deterrent to the upward trajectory of Twist Bioscience (NASDAQ: TWST) stock. Shares of the DNA synthesis company have soared 186% since the beginning of 2020. Due to an increase in the number of shares outstanding in that span, the company's market valuation has soared 283% year to date.

What's going on? In part, the technology platform's assistance of global research related to the coronavirus pandemic has had a positive effect on shares. In part, the company's valuation has been aided by macro factors, namely the Federal Reserve's direct injection of liquidity into corporate bond markets, which has de-risked the stock market. Does the existence of a safety net under Wall Street make the synthetic biology stock a buy despite the company's risky growth-at-all-costs business model?

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Source Fool.com