Cathie Wood, CEO of Ark Invest, has sunk an additional $600,000 into biotech firm Ginkgo Bioworks, buying into the stock’s recent dip. Ark purchased a total of 514,809 shares of Ginkgo Nov. 9, which closed the previous session at $1.26.
Ginkgo faced a roughly 15% dip in its share price on Nov. 9, a day after it reported its third-quarter earnings. The company reported revenue of $55 million, which is a 17% decrease from last year’s revenue of $66 million. Ginkgo blamed an “expected ramp down of K-12 testing in Ginkgo's Biosecurity segment” as a major contributor to the loss in revenue for the quarter.
Ark’s Ginkgo holding accounts for 2.35% of the firm’s Innovation portfolio. Ark has purchased shares of Ginkgo en masse in the past few days. It purchased over 4 million shares of Ginkgo on Nov. 8 and roughly 468,000 shares on Nov. 7.
Related: Cathie Wood Stocks: Why Ark Believes in Biotech
The biotech company’s share price has faced a steady decline since August. It is currently nearing its 52-week low of $1.12, which it hit in May.
Ark has been investing in Ginkgo for the past few years. In a 2021 blog post, Ark analyst Simon Barnett said that the company believes that Ginkgo is a strong bet over the next few years.
“We believe that Ginkgo Bioworks is an archetypal synbio company — one whose platform infrastructure could be a boon to the entire synbio ecosystem over the coming years and decades,” he said.
But Wood was interested in more biotech firms than just Ginkgo. Ark also purchased 476,066 shares of Personalis, 219,929 shares of Recursion and 147,611 shares of Accolade on Nov. 9. A total of 21.6% or Ark’s Innovation portfolio is exposed to the health care sector.
