What happened
Shares of the clinical-stage base-editing company Beam Therapeutics (BEAM -5.01%) stormed higher through the first four days of trading this week. Specifically, the biotech's stock gained a healthy 16.6%, according to data from S&P Global Market Intelligence.
Oddly enough, this double-digit move wasn't accompanied by a material news event. Beam's sizable uptick seems to simply be a rebound following last week's 23% drop in its share price.
So what
Clinical-stage biotech stocks have been extremely volatile this year, thanks to rising interest rates, geopolitical turmoil, and investors' general aversion to risk right now. Consequently, promising next-generation gene-editing companies like Beam have seen wild swings in their shares all year long.
Unfortunately, this up-and-down roller-coaster ride for Beam -- and its fellow gene-editing peers -- will probably persist for the remainder of the year. Investors, in turn, arguably shouldn't own these turbulent biotech stocks if they are uncomfortable with wild price fluctuations.
Now what
Despite this stomach-churning level of volatility, Beam's long-term value proposition is still rather compelling. The company is gearing up to begin human trials for its lead product candidate, BEAM-101, in adult patients with severe sickle cell disease in the second half of 2022. Moreover, the biotech is developing a line of off-the-shelf cell therapies that might be major breakthroughs in the field. So if you don't mind buying and holding for the long haul, Beam's stock may be worth owning right now.
