For fans of the biotech boom, today marks an important debut as Ginkgo Bioworks (NYSE:DNA) begins trading. The company opted to go public by way of a SPAC, merging with Soaring Eagle Acquisition, a company known for partnering with innovators in the biology and scientific spaces. As of today, Ginkgo is valued at $15 billion. The deal netted it the anticipated sum of $1.6 billion after its finalization.
What’s Happening With DNA Stock?
Ginkgo CEO Jason Kelly compares his company’s work with new organisms generation through cell biology to the work done in the classic book and film Jurassic Park.
That might have been a horror story, but there’s nothing scary about DNA stock’s performance so far. As of this writing, shares are up 9.72% for the day. While prices have declined from their earlier peak at over $14 per share, the company remains in the green, currently trading at $12.50. The day isn’t over, but so far this company’s trading debut can be classified as a promising start.
Why It Matters
Since the merger has been finalized, investors in both SRNG and DNA stock have plenty of reasons to be optimistic as the company’s time on a major stock index kicks off.
The synthetic biology market in which Ginkgo operates is growing, in no small part because the company’s work can be applied to so many areas, ranging from food to material and therapeutic production. Additionally, the company has expanded its portfolio to include the scaling of Covid-19 testing and optimization of vaccine manufacturing. It’s been a profitable year for vaccine stocks, and as new variants emerge, there will be more reason for DNA stock to enjoy the same type of growth that we’ve seen from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA).
What Comes Next for DNA
It’s worth noting that DNA stock’s symbol wasn’t chosen ironically. It was a strategic maneuver and one that will likely work in the favor of both the company and its investors.
As Bloomberg’s Bailey Lipschultz and Claire Ballentine note, “securing the right combination of letters has become nothing short of an obsession in some corners of the investing world.”
An easy to remember ticker can only be helpful as a company’s brand develops throughout its time on trading markets. For a company such as Ginkgo, having a ticker that makes investors remember exactly what the company deals in, is a clear advantage.
It is also a plus right now that biotech companies are in the early stages of a boom amid growing market demand.
While it’s still day one for DNA stock, there’s no reason to be anything but optimistic as the company establishes itself among its public competitors. If there’s one thing that biological science companies know, it’s growth. The way it looks from here, this stock is about to experience exactly that.
On the date of publication, Samuel O’Brient 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.