In California, Zymergen raised $500 million last week in its IPO and its stock has cruised up from the IPO price of $31 a share to close on Friday at $39.88, up 29 percent from its Wednesday trading debut. The company sold an unexpectedly robust $16.1 million shares at $31, the top end of its expected range.
In short, every sign from the market is bullish.
For many companies, the hard yards to be gained lie in developing and sustaining public confidence — there are reliably profitable media companies selling at 3.5 times earnings, to quote an example. It’s clear that Zymergen has mastered the arts of communicating a story — for, with $13 million in revenue and $260 million in losses last year, to go with $12 million in revenue and $240 million in losses in 2019, Zymergen is one of the definitive story stocks.