ARKG - Why Ginkgo Bioworks Stock Is Sinking Today
2024-06-26 11:19:20 ET
Shares of Ginkgo Bioworks (NYSE: DNA) were sinking 8.3% lower as of 11:03 a.m. ET on Wednesday. The decline continued after the stock fell nearly 11% on Tuesday following two negative developments for Ginkgo.
Following the market close on Monday, the biotechnology company submitted a regulatory filing to the U.S. Securities and Exchange Commission (SEC) revealing plans to reduce at least 25% of its staff. Cathie Wood's Ark Innovation ETF (NYSEMKT: ARKK) and Ark Genomic Revolution ETF (NYSEMKT: ARKG) also disclosed on Tuesday that they sold shares of Ginkgo Bioworks.
I suspect the Ark Invest sales of Ginkgo stock worried investors more than the company's staffing cuts. Ginkgo announced in its first-quarter update on May 9 that it planned to reduce labor costs by at least 25%, so the SEC filing shouldn't have come as a surprise. However, Wood and Ark Invest have been champions for Ginkgo Bioworks for a while. The Ark Innovation ETF and Ark Genomic Revolution ETF added shares as recently as May 10.
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Why Ginkgo Bioworks Stock Is Sinking Today