why did zymergen stock drop

by Dr. Carmel Beatty I Published 3 years ago Updated 2 years ago

Zymergen (NASDAQ: ZY) made headlines last week when the stock collapsed 76% on Wednesday following the resignation of its CEO and a revision to 2021 revenues. However, the news that ARK invest’s Cathie Wood was buying she dip sent Zymergen soaring on Thursday.

Full Answer

What happened to zymergen stock?

Aug 04, 2021 · Zymergen (ZY 2.53%) stock got slammed this morning and had plunged 76% at 11:25 a.m. EDT, thanks to some jarring updates coming in from the "biofacturing" start-up that went public just this ...

Why did zymergen (Zym) say it's losing sales from hyaline?

Sep 08, 2021 · Investors in Zymergen ( ZY 2.53%), a synthetic-biology specialist, also felt scorched after the stock plummeted 62%, according to data provided by S&P Global Market Intelligence. Early in August ...

How does zymergen make its products?

Aug 05, 2021 · After plummeting 76% yesterday, shares of Zymergen ( ZY 0.28% ) are rebounding today. As of 10:16 a.m. EDT, the stock, which had climbed as much as 59.9% at one point on Thursday, was up 46.8%. It ...

What happened to zymergen CEO Josh Hoffman?

Aug 04, 2021 · Zymergen went public at $31 a share in April and traded as high as $48.50, valuing the company at $4.8 billion. The stock sank to $11.07 after hours on Tuesday, leaving its market cap at just over ...

Why is Zymergen stock going down?

Zymergen shares ZY, -1.11% plunged about 70% in after-hours trading Tuesday, after the “biofacturing” company revealed that its only current product is struggling in the market, a major target for future business isn't panning out, and its chief executive is stepping down “by mutual decision.” After pricing its IPO at ...Aug 3, 2021

Is Zymergen a good stock to buy?

Out of 7 analysts, 0 (0%) are recommending ZY as a Strong Buy, 0 (0%) are recommending ZY as a Buy, 4 (57.14%) are recommending ZY as a Hold, 2 (28.57%) are recommending ZY as a Sell, and 1 (14.29%) are recommending ZY as a Strong Sell.

What went wrong with Zymergen?

According to a former senior-level employee at Zymergen, Hoffman used exaggerated financial figures and made overly optimistic projections about the company's capabilities, both internally and externally.Oct 13, 2021

Is Topicus a good stock to buy?

Topicus.Com Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Topicus.Com Inc..

Is Zymergen a good company?

Is Zymergen a good company to work for? Zymergen has an overall rating of 3.1 out of 5, based on over 176 reviews left anonymously by employees. 50% of employees would recommend working at Zymergen to a friend and 25% have a positive outlook for the business.May 4, 2022

Why did Zymergen CEO resign?

Just over three months after wowing Wall Street with a $575 million initial public offering (IPO), synthetic biology company Zymergen lost nearly 70% of its share price as the company acknowledged that it will make no product revenue this year and “immaterial” revenue in 2022 due to unspecified technical problems with ...Aug 4, 2021

What does Zymergen make?

Zymergen develops genetically engineered microbes that are used for industrial fermentation. The company's approach merges automation and bioinformatics, which has been described as a combination of Darwinian selection of genetically engineered microbes combined with machine learning, analysis and automation.Dec 2, 2015

Is Lspd a good stock?

The financial health and growth prospects of LSPD, demonstrate its potential to underperform the market. It currently has a Growth Score of F. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.

It has been a crazy week for this synthetic-biology upstart -- and the week's not even over yet

A member of The Motley Fool since 2006, Scott began contributing content in 2013. His focus includes renewable energy, gold, and water utilities. Follow him on Twitter. . . Follow @scott81236

What happened

After plummeting 76% yesterday, shares of Zymergen ( NASDAQ:ZY) are rebounding today. As of 10:16 a.m. EDT, the stock, which had climbed as much as 59.9% at one point on Thursday, was up 46.8%.

So what

The company announced on Monday that it doesn't expect to generate revenue in 2021 and only generate nominal revenue in 2022 due to "issues with its commercial product pipeline." Investors then raced to exit their positions yesterday. Today, however, they are sprinting to get back in.

Now what

While the news of its manufacturing challenges are disheartening for investors, the company also noted that the hurdles are not insurmountable.

Is Zymergen going public?

Zymergen is the first biofacturing company to go public, but its CEO expects it won’t be the last . Zymergen (ticker: ZY) shares rose 21.45% from its offer price on its first day of trading Thursday and raised $500 million with its IPO. Biofacturing, which is distinct from biomanufacturing, refers to the use of biological processes to make chemicals.

What is a zymergen?

About Zymergen Zymergen is a biofacturing company using biology to reimagine the world. Zymergen partners with nature to design, develop and manufacture bio-based breakthrough products that deliver value to customers in a broad range of industries.

When is Zymergen's first quarter 2021?

Webcast Information Zymergen will host a conference call to discuss the first quarter 2021 financial results after market close on Monday, May 24, 2021 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at https://investors.zymergen.com/.

How many customers does Vivint have?

Vivint boasts over 1.5 million customers in North America. This month, Vivint has seen both good and bad news. On May 3, the company settled a court action with the US Department of Justice and the Federal Trade Commission, accepting a $20 million fine for alleged violations of the Fair Credit Reporting Act.

How much is operating expense for 2021?

Total operating expenses for the first quarter of 2021 were $87.1 million dollars, a 32.8% increase from $65.6 million dollars in the first quarter of 2020.

How much did Zymergen raise?

Between December 2018 and its IPO, Zymergen raised $700 million from investors as a private company. On April 21, the company took in another $500 million in a successful initial public offering ( IPO ).

Is Zymergen a bulk fermentation?

Zymergen investors are depending on a non-existent bulk fermentation process to produce next-generation materials at reasonable prices. Strangely, the company hasn't started trying to produce anything at scale and it doesn't have a good excuse for not doing so.

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