Wall Street Says Ginkgo Bioworks Stock Will Soar 132%, and Cathie Wood's Buying It. Should You?
Ginkgo Bioworks (NYSE: DNA) is a biotech unlike any other, and it's no surprise why it's consistently attracting the attention of bigwig portfolio managers like Cathie Wood. Wood's confidence in Ginkgo is doubtlessly why it's worth nearly 2.5% of ARK Invest's various portfolios, including her ARK Innovation ETF. In just the past month, she's bought shares three times, including most recently on Sept. 21.
What's more, analysts on Wall Street calculate on average that the stock could rise by 132% over the coming 12 months. That stands in stark contrast to its performance over the last 12 months, which saw its shares fall by 38%. So is this stock worth buying, or will its decline continue?
Ginkgo Bioworks has an ambitious business model with two segments. The biosecurity segment aims to help institutions and governments to monitor infectious disease outbreaks by providing population-level testing of wastewater and individuals. Those activities brought in $35 million in the second quarter of 2023, but with the threat of COVID-19 appearing to attenuate, revenue is unlikely to recover its past highs in excess of $100 million per quarter anytime soon.
Source Fool.com
