The tech sector meltdown – and broader stock market “mini-crash” – has been painful…
In just two weeks, the Nasdaq has dropped more than 10%. That marks its biggest and fastest crash since the Covid-19 pandemic emerged about a year ago.
But running for the exits may be the worst thing you can do today.
Instead, now is the time to go shopping for discounts in disruptive innovators with enormous long-term potential.
That’s because these companies are still changing the world. Their executive teams, engineers, and programmers don’t care about the sharp rise in long-term yields or the steep drop in tech stocks – they’re too busy at work building, amplifying, and commercializing breakthrough technologies that will fundamentally change how we eat, sleep, play, work, and travel.
These companies still represent the future.
Their stock prices are just now heavily discounted because of a near-term panic relative to spiking yields. This near-term panic – like every other near-term panic in the past hundred years – will pass. When it does, the companies with strong fundamentals will see their stock prices rebound with vigor.
That’s why we aren’t running from this sell-off – but rather, embracing it by buying the dip in high-quality growth stocks.
Today, we will give you one high-quality growth stock which stands out to us. It’s a company that with a breakthrough synthetic DNA technology platform that could reform how farmers make foods, how brewers brew beers, how biotech companies make drugs, how pharma companies make medicines, and how data-center operators store data. It’s a company that has the potential to change literally everything – and which, long-term, has enormous upside potential.
The Synthetic DNA Company with the Potential to Change Everything
As longtime readers know, we like to invest in innovation, because innovation is the fuel of earnings growth, and earnings growth is what drives long-term trends in stock prices.
In the world of innovation, few companies stand out as much as Twist Biosciences (NASDAQ:TWST).
Twist Biosciences is a $5.7 billion, hyper-innovative synthetic biology company that has developed a breakthrough, proprietary technology platform to quickly and cheaply manufacture tons of high-quality synthetic DNA.
This breakthrough synthetic DNA tech platform has the potential to change the world.
To understand why, we have to understand a few things about the synthetic DNA market.
First, this market has enormous potential.
Synthetic DNA is broadly defined as DNA created on computers and inserted into organisms. The applications of synthetic DNA are infinite.
Farmers can use synthetic DNA to genetically engineer a new class of pest-resistant and disease-immune crops. Biotechnologists can use synthetic DNA to more rapidly test new medicines. Brewers can use synthetic DNA to more cost-efficiently create new beer flavors.
And, perhaps most interestingly, data-center operators can use synthetic DNA to store data, since DNA – as the information library of life – can store massive amounts of data at a density unmatched by computers.
That’s just the short list of synthetic DNA applications. DNA strands are the building blocks of life. As such, synthetic DNA has the potential to materially disrupt (and improve) everything about life.
Second, Twist Biosciences’ breakthrough technology will be the key to unlocking all this potential in the synthetic DNA market.
Synthetic DNA is not easy to make. But Twist Biosciences has developed a novel way to “write” synthetic DNA on a silicon chip, and as a result, quickly and cheaply manufacture a ton of synthetic DNA.
In essence, Twist Biosciences has leveraged semiconductor engineering principles to miniaturize the chemistry necessary for DNA synthesis. This miniaturization reduces reaction volumes and increases throughput, enabling Twist to synthesize up to 9,600 genes on a single silicon chip – versus other synthetic DNA makers who, in the same physical space, can produce just one gene.
That ultimately means that Twist Biosciences can supply tons of synthetic DNA to researchers at very low costs. Of course, the more synthetic DNA researchers can access, the closer we will inch to making scientific breakthroughs on designing pest-resistant crops, perfect-tasting beers, and medicines without side-effects.
To that end, Twist Biosciences’ core semiconductor-based synthetic DNA manufacturing process is the key to unlocking the enormous potential of the synthetic DNA market.
This truly is, then, a company that could change the world.
We believe they are going to do exactly that. Not just because Twist Biosciences has built some of the most exciting and impactful technology in the world. But also, because its CEO, Emily Leproust, is hyper-focused on using innovation to keep changing the world.
“Everything we try to do must be disruptive and best in class,” Leproust once said. “I demand that it be disruptive.”
That’s the sort of attitude which – when coupled with a breakthrough technology like Twist’s semiconductor-based synthetic DNA manufacturing process – will lead to a steady stream of world-changing innovation and significant long-term earnings growth.
Example? Twist is partnering up with Microsoft and Illumina to break ground on a new generation of DNA-based data storage centers.
Yet… this world-changing company is worth just $5.7 billion today… and its stock price has plunged more than 40% over the past month.
A buying opportunity?
We think so – and that’s why, if you have a time on your side, you should consider taking a buy-and-hold position in Twist Bioscience stock today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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