For fans of the biotech boom, today marks an important start as a Ginkgo Bioworks (NYSE:DNA) begins to negotiate. The company chose to go public through a SPAC, merging with Acquisition of the booming eagle, a company known for partnering with innovators in the fields of biology and science. To date, Ginkgo is valued at $ 15 billion. The deal earned him the expected sum of $ 1.6 billion after it was finalized.
What happens with the DNA stock?
Ginkgo CEO Jason Kelly compares his company’s work on generating new organisms through cell biology to work done in the classic book and movie jurassic park.
It might have been a horror story, but the performance of the DNA stock is nothing short of scary so far. As of this writing, stocks are up 9.72% for the day. As prices have fallen from their previous high of over $ 14 a share, the company remains in the green, currently trading at $ 12.50. The day is not over, but the business start of this company so far can be considered a promising start.
Why is this important
Since the merger was finalized, investors in SRNG and DNA shares have plenty of reason to be bullish as the company’s time on a major stock index begins.
The synthetic biology market in which Ginkgo operates is growing, in large part because the company’s work can be applied to many areas, from food to material and therapeutic production. Additionally, the company has expanded its portfolio to include scaling up Covid-19 testing and optimizing vaccine manufacturing. It has been a profitable year for vaccine stocks, and as new variants emerge there will be more reasons for DNA stocks to benefit from the same kind of growth we’ve seen since. Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA).
What comes next for DNA
It should be noted that the symbol for the DNA stock was not chosen ironically. This was a strategic move that will likely work in favor of both the company and its investors.
As Bloomberg Bailey Lipschultz and Claire Ballentine note that “securing the right combination of letters has become an obsession in some corners of the investment world.”
An easy-to-remember ticker can only be useful when a company’s brand grows throughout its time in trading markets. For a business like Ginkgo, having a ticker that allows investors to remember exactly what the business is doing is a clear advantage.
It is also an advantage at this time that biotech companies are in the early stages of a boom amid increasing market demand.
While this is still the first day for the DNA stockpile, there is no reason to be optimistic as the company is establishing itself among its public competitors. If there’s one thing life science companies know, it’s growth. What it looks like from here, this stock is about to go through just that.
At the time of publication, Samuel O’Brient had (directly or indirectly) no position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.