3 Key Factors Every Investor Should Know Before Buying Ginkgo Bioworks Shares
The Biofoundry Challenge
Ginkgo Bioworks operates a complex biofoundry using custom-built laboratory-automation hardware known as reconfigurable-automation carts (RACs). These mobile enclosures facilitate automated workflows for designing and cultivating microorganisms at scale, but the cost and efficiency of this system remain key concerns that could impact the company's success.
Tight Cash Flow and High Expenses
The company faces cash constraints with high operating expenses, prompting a cost-cutting campaign to reduce annual expenses by $200 million and potentially affecting its workforce. While Ginkgo Bioworks has some runway, the need to generate cash flow to sustain operations is essential for long-term viability.
Delisting Risks
Ginkgo Bioworks is at risk of being delisted from the stock exchange due to its low share price. The company has six months to regain compliance or face delisting, potentially impacting investor confidence. Understanding these critical issues is essential for investors evaluating Ginkgo Bioworks as an investment option.
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