Today, industrial biotech company Amyris (NASDAQ:AMRS) is seeing impressive gains. Investors in AMRS stock have seen gains of more than 10% in earlier trading on heavy volume today.
For biotech stocks, such moves are certainly not uncommon. For companies operating in the synthetic biology space like Amyris, investors have reason to be more bullish than perhaps with many other, more speculative biotech stocks. The company’s production of approximately 70% of the world’s squalene using engineered yeast cells and sugar cane is impressive. Use cases for how genetically engineered byproducts from yeast can potentially drive the development of vaccines, produce synthetic compounds such as those found in cannabis, and be used for other use cases is intriguing.
Additionally, gene-editing stocks have been on a tear as of late. Investors see a lot of value with investing in the future scientific discoveries companies like Amyris can provide. The trick is to get in early on such plays.
Let’s dive into another reason why AMRS stock is taking off today.
AMRS Stock Surging Amid Retail Investor Interest
As you may have noticed, retail investors have found power in numbers. And biotechs such as Amyris have seen a lot of retail investor interest lately.
Whether it’s the business model or the company’s relatively high short volume ratio that’s intriguing investors, AMRS stock is certainly in the spotlight. Indeed, some relatively detailed due diligence on AMRS stock can be found on various social media sites. Accordingly, AMRS stock appears to be one that’s catching fire among investors seeking mid-cap plays with plenty of upside.
Currently, Amyris isn’t a company with a tiny valuation. That said, at under $15 per share, retail investors may want to take a gamble on picking up a few shares. Gene-editing stocks such as Amyris certainly are speculative in nature. However, investors betting on another round of risk-on sentiment seem to like this name today.
Investors need to remember that this was a stock trading sub-$2 per share late last year. Therefore, this rapid share-price rise needs to be taken in context. Investors should remember to practice proper portfolio discipline in sizing such positions accordingly.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.