Why Ginkgo Bioworks Stock Soared Yesterday

Admittedly, this is a clickbait title. Nobody is capable of deciphering why stocks move the way they do which is why hedge funds are now dominated by algorithms with a vociferous appetite for big data. However, we do know two things are true – Ginkgo Bioworks released their 10-K annual report yesterday, and the stock was up +22% on the same day. It’s probably not a coincidence, so let’s sift through the filing and see what insights can be gleaned.

Ginkgo Bioworks 2021 Results

The last time we looked at this synthetic biology darling was in a piece titled Ginkgo Bioworks Responds to Short Seller Report at which time the firm had a market cap of nearly $18 billion. Based on pure Foundry revenues alone, we concluded that shares of Ginkgo Bioworks would need to trade at $2.69 a share or lower before we would consider investing in them. Now that the company’s valuation has dropped 62% over the past four months, and we have new revenue data to work with, we can recalculate the simple valuation ratio t