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<ul><li><keyword id="4387270" type="PERSON" weightage="60" keywordseo="zymergen">Zymergen</keyword> rebounded by as much as 85% on Thursday after it fell 76% on Wednesday.</li><li>The rally in Zymergen comes after <keyword id="10473418" type="UNKNOWN" weightage="60" keywordseo="cathie-wood">Cathie Wood</keyword>'s <keyword id="4513420" type="PERSON" weightage="60" keywordseo="ark-invest">Ark Invest</keyword> tripled its stake in the synthetic biology company.</li><li>The Ark Invest Genomic Revolution ETF now owns more than 3.5 million shares of Zymergen.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestmp;utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</li></ul>Shares of <a href="https://markets.businessinsider.com/stocks/zy-stock">Zymergen</a> soared as much as 85% on Thursday, helping the synthetic biology company recoup some of its massive losses from Wednesday.Zymergen <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-ipo-bought-by-cathie-wood-ark-invest-2021-8">plunged 76% yesterday after it said issues with its main product</a> would prevent the company from generating material revenue this year and next.But Cathie Wood's Ark Invest saw opportunity in Zymergen's massive Wednesday decline and ultimately tripled its stake in the company. The <a href="https://markets.businessinsider.com/etfs/ark-genomic-revolution-etf-us00214q3020">Ark Invest Genomic Revolution ETF</a> bought more than 2.5 million shares of the company on Wednesday, bringing its stake to more than 3.5 million shares.Zymergen said in a statement on Tuesday that it became aware of issues with its commercial product pipeline that will impact the company's delivery timeline and revenue projections. Zymergen is working to develop Hyaline, which enables flexible display applications for screens and devices."Several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes," Zymergen said, adding that while it made progress addressing the challenges, there will be a delay in the company's commercial ramp.Additionally, Zymergen said the total addressable market for foldable display applications is growing at a slower pace than anticipated, resulting in lower sales forecasts for the company.Zymergen went public in April of this year. The Ark Invest Genomic Revolution ETF traded up more than 2% in Thursday trades.<div type="image" title="Zymergen stock chart" height="502" width="635" msid="85073369" hostid="261"></div>

Zymergen rebounds with a 85% rally after Cathie Wood's Ark Invest tripled its stake in the synthetic biology company

<ul><li>Shares of <keyword id="4387270" type="PERSON" weightage="60" keywordseo="zymergen">Zymergen</keyword> plunged as much as 77% on Wednesday after the company disclosed "issues" with its product.</li><li>The recent IPO, which was bought by <keyword id="10473418" type="UNKNOWN" weightage="60" keywordseo="cathie-wood">Cathie Wood</keyword>'s <keyword id="4513420" type="PERSON" weightage="60" keywordseo="ark-invest">Ark Invest</keyword>, said it no longer expects revenue this year or next.</li><li>Zymergen's CEO Josh Hoffman stepped down from the company.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestts&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/zy-stock">Zymergen</a>, a synthetic biology company that completed its IPO in April, plunged as much as 77% on Wednesday after the company <a href="https://investors.zymergen.com/news-releases/news-release-details/zymergen-provides-business-update">said that product "issues"</a> will lead to little revenue being generated for the foreseeable future.The company said in a statement on Tuesday that it became aware of issues with its commercial product pipeline that will impact Zymergen's delivery timeline and revenue projections. Zymergen is working to develop Hyaline, which enables flexible display applications for screens and devices."Several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes," Zymergen said, adding that while it made progress addressing the challenges, there will be a delay in the company's commercial ramp.Additionally, Zymergen said the total addressable market for foldable display applications is growing at a slower pace than anticipated, resulting in lower sales forecasts for the company. Zymergen no longer expects to generate product revenue in 2021, and said any revenue generated in 2022 would be "immaterial."Cathie Wood's Ark Invest is feeling the pain on Wednesday. The Ark Genomic Revolution ETF owned just over 1 million shares of Zymergen as of Wednesday, leading to a loss of more than $26 million. Ark had built its position in the company throughout late April and early May, according to its daily trade updates.Despite the loss in Zymergen, the Ark Genomic Revolution ETF was up about 0.50% in Wednesday trades.<div type="image" title="Zymergen stock chart" height="497" width="627" msid="85042065" hostid="261"></div>

A recent IPO bought by Cathie Wood's Ark Invest just tanked 77% after it said product 'issues' will lead to little revenue this year and next

<ul><li><keyword id="11898779" type="UNKNOWN" weightage="60" keywordseo="ark-invest" source="Orion">Ark Invest</keyword> is still selling <keyword id="12330090" type="UNKNOWN" weightage="60" keywordseo="zillow" source="Orion">Zillow</keyword> after the firm revealed it's leaving the home-flipping business.</li><li>Ark's flagship ETF has sold nearly 7 million shares over the past two weeks amid the decline in Zillow.</li><li>"When there is a fundamental change in the story, like Zillow's decision to abandon iBuying, that violated one of our theses," <keyword id="11893881" type="UNKNOWN" weightage="60" keywordseo="cathie-wood" source="Orion">Cathie Wood</keyword> said.</li></ul>Ark Invest is doing something it rarely does with its holdings — sell when the going gets tough rather than snap up more shares when a stock dips. From <a href="https://markets.businessinsider.com/news/stocks/cathie-wood-ark-robinhood-dip-earnings-tesla-stock-etfs-2021-10">Robinhood</a> to <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-cathie-wood-ark-invest-tripled-stake-2021-8">Zymergen</a>, Cathie Wood's disruption-themed investment management company has often stuck by its holdings and <a href="https://markets.businessinsider.com/news/stocks/cathie-wood-ark-invest-palantir-dip-stock-funds-tesla-robinhood-2021-11#:~:text=Cathie%20Wood's%20Ark%20funds%20bought,Markets%20Insider">bought the dip</a> whenever a high-growth company stumbled and saw a sizable stock price decline.When it comes to <a href="https://markets.businessinsider.com/stocks/z-stock">Zillow</a>, though, Ark has steadily pared down its stake after the online real estate firm announced that <a href="https://www.businessinsider.com/ibuyer-defunct-why-did-zillow-stop-buying-houses-2021-11">it's exiting the home-flipping business</a> earlier this month. That news, coupled with an earnings report that missed analyst expectations, sent the stock down 40% in short-order.Ark's flagship Disruptive Innovation ETF sold 31,361 Zillow shares on Wednesday, bringing its remaining position to just 828 shares worth about $50,000 on Thursday. The same ETF owned about 6.8 million Zillow shares at the start of November."When there is a fundamental change in the story, like Zillow's decision to abandon iBuying, that violated one of our theses... they've just abandoned it. And so we did sell and it's unusual for us to sell on a big drop in the stock, but we have other stocks that have gone down as well," Wood told Barron's in an interview this week.ARK still holds 1.36 million Zillow shares, split between its Next Generation Internet and Fintech Innovation ETFs, though it has been continuously paring back those stakes as well.Despite Zillow's mix-up in the home flipping business, Ark Invest maintains exposure to the sector, as it still believes a tech company could take the friction out of the home buying and selling process and create a profitable and sizable market. <div type="image" title="Ark holdings of Zillow" height="798" width="1647" msid="87786226" hostid="261"></div>

Ark Invest's flagship fund has dumped nearly all of its 7 million shares of Zillow since the online real estate firm shuttered its home-flipping business

a d<ul><li><keyword id="12258205" type="UNKNOWN" weightage="60" keywordseo="ginkgo-bioworks-stock" source="Orion">Ginkgo Bioworks stock</keyword> plummeted as much as 24% Wednesday after Scorpion Capital alleged the company is a "Frankenstein mash-up of the worst frauds."</li><li>Ginkgo went public last month via SPAC and counts Cathie Wood's <keyword id="11898779" type="UNKNOWN" weightage="60" keywordseo="ark-invest" source="Orion">Ark Invest</keyword> as an investor.</li><li>Scorpion claims the bulk of the synthetic biology company's revenue is based on accounting gimmicks. </li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestedium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/dna-stock">Ginkgo Bioworks</a> stock plunged as much as 24% on Wednesday after a short-seller report from Scorpion Capital alleged that the synthetic biology company is a "Frankenstein mash-up of the worst frauds."Scorpion, which is short the recent SPAC IPO, alleged that a bulk of Ginkgo's revenue is phantom, or non-cash based, and instead is based on accounting gimmicks enabled by a web of shell companies. Scorpion based its allegation on research and conversations with former and current employees of both Ginkgo and the companies it works with."A senior employee [of one of Ginkgo's customers] stated unequivocally that they have never paid Ginkgo cash for foundry services and are merely using 'free' R&amp;D credits following investments by Ginkgo and Viking," the report said.Ginko didn't immediately respond to a request for comment.Former short-seller Andrew Left of Citron Research applauded Scorpion Capital's research and said the company is "more of a scheme than a scam." He said the company's valuation was in part inflated by misaligned incentives of the parties that brought it public, adding that it dwarfs Ginkgo's 2020 private funding valuation of about $5 billion. On Tuesday, Ginko's valuation was $23.6 billion."We cannot disagree that the stock will probably be down 80% in short form," Left said.Such a steep decline would hurt investors like Cathie Wood's Ark Invest, which currently owns a combined $325 million of Ginkgo in its flagship Disruptive Innovation ETF and Genomic Revolution ETF.But if a steep 80% decline in Ginkgo does materialize, Ark Invest might be unfazed and instead buy the dip based on its prior investment activity.In August, Ark Invest suffered a steep decline in its holdings of Zymergen, another synthetic biology company that competes with Ginkgo. Zymergen <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-ipo-bought-by-cathie-wood-ark-invest-2021-8?utm_source=markets&amp;utm_medium=ingestgest">plunged almost 80% in a single day</a> after it pushed back its timeline in generating meaningful revenues due to product development issues.In response to Zymergen's steep decline, Ark Invest <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-cathie-wood-ark-invest-tripled-stake-2021-8">purchased more shares of the company</a> rather than backing away. Whether Wood is taking advantage of today's decline in Ginkgo stock will be known as soon as Ark publishes its daily <keyword id="6368158" type="UNKNOWN" weightage="60" keywordseo="trading" source="Orion">trading</keyword> activity this evening. "Behind the hype, Ginkgo is a glorified contract research organization that does commodity yeast strain engineering, with a decade of spectacular failure in delivering anything of value for customers," Scorpion concluded.<div type="image" title="Ginkgo Bioworks stock price" height="530" width="623" msid="86816242" hostid="261"></div>

Ginkgo Bioworks plunges 24% after short-seller calls it a 'Frankenstein mash-up of the worst frauds'

<ul class="summary-list"><li><keyword id="11893881" type="UNKNOWN" weightage="60" keywordseo="cathie-wood" source="Orion">Cathie Wood</keyword>'s <keyword id="11898779" type="UNKNOWN" weightage="60" keywordseo="ark-invest" source="Orion">Ark Invest</keyword> bought the dip in <keyword id="12258203" type="UNKNOWN" weightage="60" keywordseo="ginkgo-bioworks" source="Orion">Ginkgo Bioworks</keyword> after the stock tumbled as much as 24%.</li><li>Scorpion Capital slammed Ginkgo's business model, alleging it was a "Frankenstein mash-up of frauds." </li><li>Ark's Innovation ETF and Genomic Revolution ETF now hold a combined $363 million of Ginkgo.</li></ul>Cathie Wood's funds snapped up more than 8 million shares in <a href="https://markets.businessinsider.com/stocks/dna-stock?utm_source=markets&amp;utm_medium=ingestgest">Ginkgo Bioworks</a> on Wednesday, as the stock <a href="https://markets.businessinsider.com/news/stocks/ginkgo-bioworks-stock-price-scorpion-capital-short-seller-report-frankenstein-2021-10">plunged as much as 24%</a> in the wake of a report that called it a "Frankenstein mash-up of the worst frauds."The flagship <a href="https://markets.businessinsider.com/etfs/ark-innovation-etf-us00214q1040">Ark Innovation ETF</a> bought 6.7 million shares in the synthetic biology company, while the <a href="https://markets.businessinsider.com/etfs/ark-genomic-revolution-etf-us00214q3020">Genomic Revolution ETF</a> picked up 1.5 million. Together, the ETFs now have a combined $363 million of Ginkgo, according to an Ark Invest trading notification, meaning the holding rose 11% in one day.Wood took advantage of a slide in Ginkgo's stock after Scorpion Capital released its short-seller report. The stock fell 11.6% to reach $10.59 per share at Wednesday's close, having touched an intraday low of $9.27. It is down another 2.5% to $10.32 in premarket trading Thursday, and has lost 13% so far this year.Scorpion Capital, which is short Ginkgo, bashed the company's business model and practices. It said it based its findings on 21 research interviews with former employees, executives, and people currently employed at partner companies. Gingko <a href="https://www.businessinsider.com/ginkgo-bioworks-stock-15-billion-spac-deal-investor-skepticism-2021-6?r=US&amp;IR=TIR=T">went public last month</a> via a $1.6 billion deal with a special purpose acquisition company."Ginkgo is a house of cards - in our opinion, one of the most brazen frauds of the last 20 years," it said in the report published Wednesday.It alleged that Gingko's revenue is an "elaborate fiction" and that its current income is based on a "dubious shell game" based on customers the company itself fabricated and invested in. That meant Ginkgo sent its own money on a round-trip journey on its balance sheet, Scorpion Capital claims."Our focus at Ginkgo is increasing the scale of our platform so we can deliver more cell programs to customers," Gingko's CEO and co-founder Jason Kelly told Insider in a statement on Thursday.One thing the report criticizes is that new startups are launching programs on Ginkgo's platform and leveraging its platform to secure capital, get resources, and launch their new company quickly, he added. "We don't think that is a problem - starting a biotech company should be as easy as launching a website!"Ark's decision to dive further into Ginkgo may not be surprising, considering its prior investment activity. In August, its holdings in Zymergen, a synthetic biology rival to Ginkgo, saw the stock price <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-ipo-bought-by-cathie-wood-ark-invest-2021-8?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">tumble 80% in one day</a>. But Ark <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-cathie-wood-ark-invest-tripled-stake-2021-8?utm_source=markets&amp;utm_medium=ingestgest">tripled its stake</a> in the company, instead of retreating.The trading update from Ark Invest also showed Wood continues to dump its stake in <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a>. The Innovation ETF sold 63,135 shares in the electric-car maker on Wednesday, following <a href="https://markets.businessinsider.com/news/stocks/cathie-wood-ark-tesla-stock-sales-price-bond-yields-270-million-2021-9">a string of similar sales</a> by the fund. But Tesla still represents its biggest holding.Read More: <a href="https://www.businessinsider.com/stocks-to-buy-earnings-growth-2022-q3-taxes-goldman-sachs-2021-10" target="_blank" rel="noopener noreferrer">These 20 stocks are set to grow earnings by at least 20% in 2022, Goldman Sachs says - even as broader market growth slows and taxes rise</a>

Cathie Wood's funds bought the dip in Gingko Bioworks after a short-seller called it a 'Frankenstein' of frauds

<ul><li><keyword id="10473418" type="UNKNOWN" weightage="60" keywordseo="cathie-wood">Cathie Wood</keyword>'s <keyword id="4513420" type="PERSON" weightage="60" keywordseo="ark-invest">Ark Invest</keyword> is quickly building a position in a SPAC that plans to merge with <keyword id="2893238" type="PERSON" weightage="60" keywordseo="ginkgo-bioworks">Ginkgo Bioworks</keyword>.</li><li>The Ark Disruptive Innovation and Genomic Revolution ETFs doubled its stake in the SPAC on Monday, buying 7 million shares.</li><li>Ark Invest now owns 14 million shares of the SPAC worth about $150 million as of Monday.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestce=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</li></ul>Cathie Wood's confidence in a synthetic biology company is growing as Ark Invest builds a multi-million share position in <a href="https://markets.businessinsider.com/stocks/srng-stock">Soaring Eagle Acquisition Company</a>, a SPAC set to merge with Ginkgo Bioworks.On Monday, Ark Invest's <a href="https://markets.businessinsider.com/etfs/ark-innovation-etf-us00214q1040">Disruptive Innovation</a> and <a href="https://markets.businessinsider.com/etfs/ark-genomic-revolution-etf-us00214q3020?utm_source=markets&amp;utm_medium=ingestgest">Genomic Revolution</a> ETFs purchased a total 7 million shares of the SPAC, bringing its total position to 14.5 million shares. While the $150 million position is small relative to its other holdings, what is notable is how quickly Ark is building its position.ARK Invest first began purchasing shares of the SPAC on August 3, according to its daily <keyword id="6368158" type="UNKNOWN" weightage="60" keywordseo="trading">trading</keyword> updates.Ginkgo Bioworks is a synthetic biology company that uses genomic editing to design and program cells for industrial applications. Ginkgo is going public at a pre-money valuation of $15 billion, and expects to raise $2.5 billion in cash from the SPAC merger.ARK Invest is one of many institutional investors that committed to Ginkgo's $775 million PIPE financing, which is tied to the completion of the SPAC merger. The company, founded by four MIT students and their professor in 2009, expects to double its revenue in 2021 to $150 million.This won't be Ark Invest's first investment in a synthetic biology company. <a href="https://markets.businessinsider.com/stocks/zy-stock">Zymergen</a> is a holding of Ark Invest, which <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-ipo-bought-by-cathie-wood-ark-invest-2021-8">recently plunged 77%</a> after it said production issues of its Hyaline product for foldable displays will hamper revenue this year and next. But Ark Invest kept the faith in Zymergen following its plunge <a href="https://markets.businessinsider.com/news/stocks/zymergen-stock-price-cathie-wood-ark-invest-tripled-stake-2021-8">and tripled its position in the company.</a>"While our confidence has been reduced in its short-term outlook, we believe that Zymergen's platform holds deep intrinsic value and that the total addressable market for products produced with synthetic biology is vast, enough so for multiple approaches and models to flourish simultaneously," Ark said in an e-mail to clients on Friday. Ark Invest's thinking on Zymergen likely spills over into Ginkgo Bioworks, which expects to complete its SPAC merger <a href="https://www.prnewswire.com/news-releases/ginkgo-bioworks-to-become-a-public-company-and-expand-its-leading-platform-for-cell-programming-301288325.html">in the third quarter of this year</a>.Read more: <a href="https://www.businessinsider.com/how-to-trade-stock-market-bubbles-options-data-strategy-ideas-2021-8" target="_blank" rel="noopener">2 leading economists used option prices to identify 20 years of stock market bubbles and build a 'bubble riding' trading strategy that beat buying and holding. Here's how it works.</a>

Cathie Wood's Ark Invest just doubled a multi-million-share position in a SPAC merging with Ginkgo Bioworks

<ul><li>Unprofitable growth stocks still face significant headwinds as they need to raise cash at depressed valuations, according to Goldman Sachs.</li><li>The bank said even after 70%-plus declines in certain growth stocks, there could still be further pain ahead.</li><li>Cathie Wood's Ark Invest made a name for itself by investing in innovative companies, most of which are not yet profitable.</li></ul>Unprofitable growth stocks that staged a remarkable boom and bust cycle after the COVID-19 pandemic could still face significant headwinds before recovering, according to a Monday note from <a href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs.</a>The bank said that while growth stock valuations no longer appear expensive, they're also not yet depressed, which is a big possibility considering prior market action during the unwind of the dot-com bubble and Great Financial Crisis.Goldman's research could raise eyebrows for investors that hold ETFs managed by Cathie Wood's Ark Invest, as the firm made a name for itself by owning a concentrated portfolio of innovative tech stocks, most of which are not yet profitable.The challenges facing speculative growth stocks include a shifting investor mentality of buying safety stocks and reducing speculative holdings amid a broader bear market decline <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-mild-economic-recession-already-priced-in-jpmorgan-2022-7">and increased worries of an economic recession.</a>But other challenges speak more to the underlying operations of unprofitable companies and whether they have enough cash to keep the lights on, according to Goldman, which highlighted the rising cost of capital that is necessary to fund the business."Currently profitable growth stocks may be able to finance continuing operations through retained cash flow. However, some unprofitable growth companies will need to raise capital externally in order to remain solvent," Goldman explained.Unprofitable growth stocks have three options as Goldman sees it:1. Raise cash by selling stock as a steep discount to prior valuations;2. Raise cash by issuing debt during a time when high yield credit markets have slowed considerably; 3. Or pursue a merger with another company amid a deteriorating outlook for the broader economy."The rising cost of capital, tightening financial conditions, and growing recession risk will limit the potential valuation upside for unprofitable growth stocks," Goldman said.One recent example of this is the case of <a href="https://markets.businessinsider.com/stocks/zy-stock">Zymergen</a>, a biotechnology stock owned by Ark Invest's Genomic Revolution ETF. The unprofitable company has plummeted 96% from its April 2021 record high, and that's after the company <a href="https://investors.ginkgobioworks.com/news/news-details/2022/Ginkgo-to-Acquire-Zymergen/default.aspx">agreed to merge with Ginkgo Bioworks</a> on Monday.And while investors might be tempted to buy stocks that have seen their valuation fall by upwards of 90%, Goldman points out that there's still room for valuations to fall further based on prior unwinds in speculative stocks. "The median high-growth stock has de-rated from a peak LTM EV/sales [multiple] of 14x in late 2021 to 4x today, slightly below its long-term median. However, growth stock valuations previously troughed at 2x EV/sales post-Tech Bubble and 2x EV/sales in the Great Financial Crisis," Goldman said.That means some unprofitable growth stocks that have already seen their stock prices decimated by rising interest rates and concerns of an economic slowdown could fall upwards of another 50% from current levels, based on historical market action. "Despite the valuation reset, challenges for unprofitable growth stocks remain," Goldman concluded.

Cathie Wood's favorite type of stocks still face significant challenges in staging a recovery, Goldman Sachs says

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Zymergen</div></div></div><ul class="summary-list"><li>On Thursday, Silicon Valley-based synthetic biology company <a href="https://www.zymergen.com/">Zymergen</a> announced a mammoth funding round of $400 million.</li><li>It's one of the largest biotech raises in history.</li><li>With financing from SoftBank Vision Fund and Goldman Sachs, the fresh infusion of cash brings the startup to the forefront of a <a href="https://www.businessinsider.com/genomatica-raises-90-million-for-synthetic-biology-materials-manufacturing-2018-10">hot</a> and <a href="https://www.businessinsider.com/marijuana-gingko-bioworks-cronos-lab-grown-cannabis-pharma-2018-9">growing industry</a> based on manufacturing goods with biology.</li><li>Zymergen doesn't yet have any consumer-facing products, but CEO Joshua Hoffman told Business Insider they're working on their first: a safe insect repellant that he expects to see on the market by 2021.</li></ul>Part of the reason <a href="https://www.dfj.com/people/andreas-stavropoulos/?category_match=Investing%20Partners">Andreas Stavropoulos</a> joined venture capital firm DFJ was to put his money towards products that the world had never seen before.That's also why he chose to lead the firm's investment in Zymergen, a Bay Area <keyword id="41551" type="ENTERTAINMENT" weightage="100" keywordseo="science">science</keyword> and tech company that turns living organisms into new materials.On Thursday, <a href="https://www.zymergen.com/">Zymergen</a> announced a mammoth <a href="https://www.businesswire.com/news/home/20181213005198/en/Zymergen-Announces-400-Million-Series-Funding-led">funding round of $400 million</a>, bringing the five-year-old startup to the forefront of a hot and growing industry based on manufacturing goods with biology instead of chemistry. It's one of the largest biotech raises in history.In recent years, investors have been pouring money into <a href="https://www.cbinsights.com/research/industrial-synthetic-biology-market-map/">companies in that field</a>, known as synthetic biology. Put simply, synthetic biology involves harnessing the power of cells to make everything from less-toxic sweeteners for food to <a href="https://www.businessinsider.com/marijuana-gingko-bioworks-cronos-lab-grown-cannabis-pharma-2018-9">drugs</a> to biodegradable <a href="https://www.businessinsider.com/mushroom-packaging-startup-aims-for-lab-grown-meat-ecovative-2018-10">building materials</a> and <a href="https://www.businessinsider.com/genomatica-raises-90-million-for-synthetic-biology-materials-manufacturing-2018-10">bags</a>.From 2012 to 2017, funding for synthetic biology startups more than tripled, surpassing the $1 billion mark for the first time in 2016, according to a <a href="https://www.cbinsights.com/research/synthetic-biology-startup-market-map/">report</a> from CB Insights. Deals have also mushroomed, rising more than 150% since 2012, the authors of the report concluded.The idea is to move away from old, highly-polluting manufacturing processes based on petrochemicals in favor of cheaper, faster, and more sustainable methods founded on cells."For us it's all about big ideas," Stavropoulos told Business Insider. But with Zymergen, "it's not just theory. They're doing it."<a href="https://www.zymergen.com/leadership/">Joshua Hoffman</a>, Zymergen's co-founder and CEO, told Business Insider that part of its aim isn't simply to avoid dirty materials. It's also to plan for a future where those materials run out or become insufficient, as well as to think of new and better products that don't yet exist."We're seeing diminishing results from companies using traditional chemical processes to manufacture their goods," Hoffman said. "There's only so much more innovation to get."<h2>'An engine you can crank ... where amazing things come out'</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image">ZymergenJoshua Hoffman, Zymergen's co-founder and CEO.</div></div></div>Zymergen stands out to Stavropoulos because it doesn't simply want to make better alternatives to existing products (think foldable, rollable materials for better smartphone displays than the rigid materials we have now). It also aims to make brand new products."There's immense value in this company as a platform," Stavropoulos said. "When what you essentially have is an engine you can crank where every time you crank it amazing things come out, that's huge."This week's monster funding round in Zymergen was led by SoftBank Vision Fund. Goldman Sachs also invested, alongside returning investor DFJ. The money brings the company to nearly $600 million in total funding.Zymergen doesn't yet have any consumer-facing products, but Hoffman said they are working on their first: a safe, non-toxic insect repellant that he expects to see on the market by 2021. Hoffman said the company is working with a number of Fortune 500 companies on projects whose details he's not free to disclose, and that more than $500 million of products have been made with its techniques.Those include unique, flexible films that would enable the world's first foldable electronics and special kinds of ultra-durable coatings and glues. Although Zymergen's existing product lineup isn't public, the company has licensed more than <a href="https://www.zymergen.com/patents/">20 patents</a> for everything from pieces of their engineering platform to techniques for electrically coaxing new DNA into the cells of bacteria.<h2>The year of synthetic biology?</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image">Ginkgo BioworksGinkgo Bioworks is a Boston-based synthetic biology whose slogan is "The organism company."</div></div></div>Zymergen isn't the only synthetic biology company that appears to be thriving.Aside from Zymergen, a handful of other synthetic biology startups have attracted fresh funding in recent months, from Boston-based Ginkgo Bioworks - which in September inked a <a href="https://www.businessinsider.com/marijuana-gingko-bioworks-cronos-lab-grown-cannabis-pharma-2018-9">$122 million deal</a> with marijuana producer Cronos to create lab-grown cannabis compounds - to San Diego-based Genomatica, which in October <a href="https://www.businessinsider.com/genomatica-raises-90-million-for-synthetic-biology-materials-manufacturing-2018-10">raised $90 million</a> to churn out alternatives to the traditional chemicals used in plastic bags.Read More: <a href="https://www.businessinsider.com/marijuana-gingko-bioworks-cronos-lab-grown-cannabis-pharma-2018-9">A startup with ties to Bayer has inked a $122 million deal to make lab-grown marijuana - and it's eyeing the pharma industry</a>Geltor, a startup in the Bay Area using bacteria to make animal-free collagen for cosmetics, recently raised <a href="http://www.geltor.com/series-a/">$18 million</a> with help from global collagen supplier Gelita, and this fall agricultural startup Pivot Bio closed a <a href="https://markets.businessinsider.com/news/stocks/pivot-bio-closes-70-million-series-b-financing-to-deliver-first-and-only-clean-alternative-to-synthetic-nitrogen-fertilizer-for-u-s-corn-farmers-1027582742">$70 million</a> financing round to beef up its microbe-based fertilizer business.Investors like Stavropoulos say the companies are working on a similar premise: that their superior production techniques can save companies money while protecting the environment and pushing the boundaries of what's possible."It's about making things better, cheaper, and at an industrial scale," Stavropoulos said. Get the latest Goldman Sachs stock price<a href="http://markets.businessinsider.com/stock/GS-Quote"> here.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/most-impressive-animal-dads-father-seahorse-penguin-2018-11">Some animal fathers are impressive parents, like seahorse dads who give birth to 2,000 babies</a></h3> <div> </div> </div>

You Searched For "zymergen stock price" and got 8 results

Zymergen rebounds with a 85% rally after Cathie Wood's Ark Invest tripled its stake in the synthetic biology company

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A recent IPO bought by Cathie Wood's Ark Invest just tanked 77% after it said product 'issues' will lead to little revenue this year and next

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Ark Invest's flagship fund has dumped nearly all of its 7 million shares of Zillow since the online real estate firm shuttered its home-flipping business

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Ginkgo Bioworks plunges 24% after short-seller calls it a 'Frankenstein mash-up of the worst frauds'

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Cathie Wood's funds bought the dip in Gingko Bioworks after a short-seller called it a 'Frankenstein' of frauds

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Cathie Wood's Ark Invest just doubled a multi-million-share position in a SPAC merging with Ginkgo Bioworks

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Cathie Wood's favorite type of stocks still face significant challenges in staging a recovery, Goldman Sachs says

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A Silicon Valley startup with 20 patents under its belt just raised $400 million from SoftBank and Goldman Sachs to make materials from living things

Erin Brodwin

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