DNA - Should You Really Be Buying Beaten-Down Growth Stocks Right Now?
Bear markets are scary times to be investing, but investors willing to pick up discounted shares while uncertainty is high are setting themselves up for big gains down the road. Let's examine a few arguments in favor of sitting out on growth stocks until the bear market resides and a few in favor of continuing to buy them.
The most straightforward reason investors might want to stop buying growth stocks right now is that the bear market is absolutely brutal to their share prices. Take the biotech stocks Ginkgo Bioworks (NYSE: DNA) and Bionano Genomics (NASDAQ: BNGO) : In the last 12 months, Gingko's shares have collapsed by 70%, and Bionano's crumbled by a similarly terrible 62%.
Neither company had much of anything in the way of bad news. Gingko has spent the year forging a smattering of new collaborations and making new acquisitions that'll yield revenue in the near term, and its total revenue grew by 282% year over year to reach $168 million in the first quarter. That means its bioengineering-and-cellular-manufacturing-as-a-service business model is seeing continued uptake among other biotech and pharmaceutical companies, though it remains unprofitable for now.
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Should You Really Be Buying Beaten-Down Growth Stocks Right Now?