We recently published an article titled Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Twist Bioscience Corporation (NASDAQ:TWST) stands against Nicholas J. Pritzker’s other stock picks with huge upside potential.
Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family’s substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.
At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.
Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.
As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.
Our Methodology
For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A scientist holding a test tube in the lab, surrounded by equipment used in synthetic biology and drug discovery.
Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders as of Q4: 26
Tao Capital’s Equity Stake: $38.52 Million
Upside Potential as of May 8: 50.11%
Twist Bioscience Corporation (NASDAQ:TWST) is a biotechnology company specializing in synthetic DNA manufacturing using a proprietary semiconductor-based process. Headquartered in South San Francisco, Twist leverages its high-throughput silicon platform to miniaturize DNA synthesis, offering time and cost savings to its diverse customer base spanning pharmaceuticals, agriculture, and data storage.
For the second quarter of fiscal 2025, Twist Bioscience Corporation (NASDAQ:TWST) reported revenue of $92.79 million, surpassing analysts’ expectations of $92.00 million. Despite this revenue beat, the company posted a loss of $0.66 per share, missing the consensus estimate of a $0.56 loss. The negative net margin of 59.76% and return on equity of 32.69% reflect ongoing challenges in scaling the business amid high operational costs. Analysts currently forecast a full-year EPS of -2.12.
Twist Bioscience Corporation (NASDAQ:TWST)’s market capitalization stands at $2.39 billion, with institutional ownership reaching 112.29%, indicating strong confidence from large investors despite recent financial difficulties. The company’s semiconductor-based DNA synthesis technology continues to offer unique advantages, which may support long-term growth as the demand for synthetic biology solutions increases.
With a price target of $47.75 and an upside potential of 45.67%, Twist Bioscience Corporation (NASDAQ:TWST) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. The company’s innovative approach to DNA synthesis and substantial institutional backing position it as a promising player in the biotech space, despite near-term profitability challenges.
Overall TWST ranks 2nd among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. While we acknowledge the potential of TWST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TWST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
