Cathie Wood Is Buying This Biotech Stock Like Wildfire, But Should You?
Beam Therapeutics (NASDAQ: BEAM) is exactly the kind of innovative biotech business that maverick growth stock investor Cathie Wood craves. Her shares are worth $210.5 million, and they account for around 3% of Wood's Ark Innovation ETF (NYSEMKT: ARKK). Most recently, between April 27 and May 8, Wood bought shares of Beam Therapeutics five times, and more purchases are probably on the way, given her penchant for adding to her position multiple times per month since early 2021.
So is Cathie Wood's emphatic and consistently reaffirmed stamp of approval enough of a signal that you should be buying this stock too? Not exactly. But, for the right investor, this company could still be a good purchase, so let's investigate the merits of a purchase to see if it could be a smart pick for you.
Beam Therapeutics is a gene-editing biotech. That means it invests heavily in building out its platform, which contains a few gene editing technologies that it intends to use to treat cancers, hereditary diseases, and hematologic disorders. Its most advanced clinical program is in phase 1/2, and it's a gene therapy currently called BEAM-101 that's intended to treat sickle cell disease and beta-thalassemia by directly editing the patient's relevant genes. It thinks that its candidate could be curative, or near-curative, which would be great for patients.
Source Fool.com
