Cathie Wood-led Ark Invest said on Friday it continues to believe Zymergen Inc (NASDAQ:ZY)’s platform holds deep intrinsic value despite the recent setback and a lowered short-term outlook.
What Happened: Zymergen shares rallied 75% a day after Wood’s firm snapped up shares in the biofacturing company, reversing the losses of the previous day.
See Also: As Zymergen Crashes 76%, Cathie Wood Piles Up $2.5M Worth Of Shares
The newly listed synthetic biology company’s massive slide took the stock to the lowest, since its April debut, after the company said its 2021 revenue will be immaterial and announced the departure of its chief executive officer.
The stock is down more than 50% compared to the IPO price of $31 per share.
“While our confidence has been reduced in its short-term outlook, we believe that Zymergen’s platform holds deep intrinsic value,” Wood’s firm said, adding that the total addressable market for products produced with synthetic biology is vast enough for multiple approaches and models to flourish simultaneously.
Zymergen has announced that several of its early-access customers had faced challenges integrating its lead biofilm asset, Hyaline, into their manufacturing processes.
Price Action: ZY shares closed 14.7% lower at $12.33 on Friday.