Twist Bioscience Is Rapidly Growing Its Customer Base. Can It Turn a Profit?
Not that long ago, I wrote an article asking how long investors would tolerate the growth-at-all-costs business model of Twist Bioscience (NASDAQ: TWST). Shares have responded by soaring over 200% in 2020. I nailed it.
The DNA synthesis company has poured money into a rapid business expansion at the expense of profitability and operating cash flow, which has forced it to fund the business through stock offerings. That's not a sustainable long-term strategy, but it's one investors and Wall Street have come to accept in the era of cheap money.
As fiscal third-quarter 2020 operating results show, Twist Bioscience is doing an impressive job growing multiple parts of its business. Is that enough for investors to overlook the growth stock's expensive valuation?
Source Fool.com
