Cathie Woods’ Firm Buys Plunging Ginkgo Bioworks Stock

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Trader Fred DeMarco works on the floor of the New York Stock Exchange, Friday, Feb. 28, 2020. Global stock markets are falling further on spreading virus fears. (AP Photo/Richard Drew)

Keep an eye on Ginkgo Bioworks Holdings (DNA).

The stock plummeted earlier this week after Scorpion Capital said:

“Ginkgo Bioworks is a colossal scam, a Frankenstein mash-up of the worst frauds of the last 20 years. At $23B market cap, it is rare to see a related-party scheme on Ginkgo’s scale in the US markets – it is, quite simply, the US version of the “China Hustle.”

They added, “Ginkgo’s business model is based on a dubious shell game. Most of its foundry revenue, an absurd 72% in 2020, and 100% of its deferred revenue are derived from related-party ‘customers.’ Investments into these entities by Ginkgo and its investors are round-tripped back.”  Ouch.

While the stock dropped on the note, it’s showing signs of life again.

All after Cathie Wood’s firm bought about eight million shares on the pullback.  Perhaps she views DNA a blood in the street opportunity.  From here, it’ll be interesting to see who is proven right with the DNA stock.

 

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