10 High Risk High Reward Growth Stocks Stocks To Buy

6. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)

Number of Hedge Fund Holders In Q2 2024: 32

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a high end biotechnology company that is perhaps one of the riskiest on our list. This is because the firm is one of the few companies in the world that is developing a genetic engineering platform to produce bacteria for industrial raw material production. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is yet to post an operating income, and its ability to grow requires not only successfully growing its commercial presence but also seeing a significant demand for its products across a variety of industries such as pharmaceuticals and agriculture. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) also recently underwent a remarkable 1 for 40 reverse stock split, and the keys to its hypothesis moving forward will be management’s ability to manage costs and land big deals for products. The firm does have $730 million in cash and equivalents which provide it some room to fund operations as it targets aggressive growth.

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s management shared details for its cell engineering programs during the Q2 2024 earnings call:

“While still very early days, this slide gives you some detail on how the nature of programs is changing. We added a total of 18 new programs and contracts in Q2 2024, of which 10 were generally comparable in size and scope to historically reported new programs. Importantly, you’ll note that of those 10 deals, 5 included downstream value share potential. In addition, we commenced 8 other customer contracts in the quarter that represent a variety of small deal architypes. These are generally much smaller in scope and shorter in duration and included 2 lab data-as-a-service deals in the protein characterization space, that we signed with a large cap tech company, which itself is an entirely new customer segment. The current sales pipeline for both categories of deals is solid.”