Ginkgo Bioworks (NYSE:DNA) shares are down following the company’s fourth-quarter and full-year 2025 financial report.
The stock’s decline comes as the company is focusing on investing in autonomous labs.
Divests Non-Core Business To Focus On Robotics
For the fourth quarter of 2025, Ginkgo Bioworks reported a strategic pivot towards robotics and AI, with CEO Jason Kelly emphasizing the company’s collaboration with the Department of Energy and OpenAI.
The company also announced plans to divest its biosecurity business to a consortium of investors for a minority stake, with the transaction expected to close in the first half of 2026, allowing Ginkgo to concentrate its resources on its autonomous labs initiative.
In addition, Ginkgo’s biosecurity business will operate as a standalone entity, aiming to enhance its growth potential with new investors.
This move is part of a broader strategy to capitalize on the increasing interest in defense technology and private capital markets, as stated by Kelly.
Ginkgo Bioworks Snapshot
- A loss of $1.41 per share, missing the consensus loss of $1.36.
- Sales of $33.32 million, down 24% year over year, came in below the consensus of $37.62 million.
- Cell Engineering’s revenue for the quarter was $26 million, a 26% decrease.
- Q4 Biosecurity revenue was $7 million, down from $9 million a year ago.
- An expected total cash burn of $150-$125 million in 2026.
Analyst View
“The combination of low visibility and transparency will be challenging for investors to swallow,” William Blair wrote in an investor note on Friday.
Ginkgo Bioworks is putting the pieces in place, according to William Blair analyst Matt Larew. The Biosecurity divestment/renewed focus on core Cell Engineering are steps in the right direction.
Still, as has been the case for several years, there needs to be tangible evidence that plans and promises translate into results for the stock to work.
William Blair reiterates an Underperform rating.
Technical Analysis
The stock is currently trading 18.13% below its 20-day simple moving average (SMA) and 12.5% below its 100-day SMA, indicating a bearish trend. Shares have decreased by 54.5% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
The RSI is at 50.00, considered neutral territory, suggesting the stock is neither overbought nor oversold. Meanwhile, MACD is at -0.05, below its signal line at 0.10, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $8.50
- Key Support: $5.00
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $169.73. Recent analyst moves include:
- TD Cowen: Buy (Lowers Target to $12.00) (Jan. 8)
DNA Price Action: Ginkgo Bioworks shares were down 24.7% at $7.31 at last check on Friday, according to Benzinga Pro data.
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