It has been a wild ride for Meta Materials (NASDAQ:MMAT) so far this year. MMAT stock first appeared on investor radars this summer. At the time, the company — then known as Torchlight Energy — was in the process of morphing from an oil and gas name into the smart materials play it is today.
Ahead of the deal close, short interest ran high. As a result, the Reddit trading community took to MMAT, seeing it as a prime squeeze opportunity. However, the surge from $5 to around $20 per share didn’t last very long. After the reverse merger closed and TRCH became MMAT stock, this “to the moon” favorite made a fast trip back to earth.
However, since briefly falling below $3 in August, Meta Materials has started to gradually bounce back. And this time, it has more to do with moves the company is making itself. The main driver? Its recent acquisition of Nanotech Security.
As InvestorPlace’s Brenden Rearick recently reported, there’s a lot of promise with this bolt-on deal. A maker of nano-optic technology, the companies share plenty of overlap. But what’s even better is that the deal is only part of MMAT’s overall growth efforts.
MMAT Stock: Latest Deal and a Plan to Scale Up
A lot of the focus on Meta Materials today may be about its recent M&A (mergers and acquisitions) transaction. But while buying Nanotech was definitely a wise move, it’s not the main thing to get excited about here.
Instead, there’s something more interesting when it comes to MMAT stock: the many products that the company could come out with using metamaterials (that is, materials with electromagnetic properties). As seen on its website, the company is developing products for 5G, health care, lidar and solar. It even has an augmented reality (AR) eyewear product in development, ARfusion.
Another product in development that has attracted heavy attention is glucoWISE, a non-invasive solution for glucose monitoring. Per company estimates, the market potential for this product could be as much as $15 billion (Page 13). But that’s not all. Met Materials’ other potentially lucrative medical products include a molecular biosensor and a medical imaging product.
Put it all together and it’s easy to imagine this company scaling up in a big way in the years ahead. In turn, this will send MMAT stock back to higher prices (although it likely won’t be a linear move higher).
It May Not Be a Smooth Ride
Clearly, there’s a lot of long-term potential with MMAT stock. Yet, that doesn’t mean you can buy today and expect it to be a smooth ride to higher prices. Instead, expect it to move higher in fits and starts. In other words, it will likely make a move higher, then pull back some or trade sideways before resuming the climb.
This may be bad news in the near-term for two reasons.
First, despite my own view on what the Federal Reserve’s latest moves mean, the market overall right now is reading things another way. Worrisome headlines about the market’s direction could continue to push stocks lower in general.
Secondly, though, a lack of updates on its catalysts could lead to a short-term decline for MMAT stock as well. Many may have bought MMAT in anticipation of it taking off quickly. If it does not release any material news within the next few months, some investors could get impatient and exit their positions.
However, if you approach this the right way as a long-term play on the growing use of smart materials? You can buy MMAT now, keep your head up in the short-term and hold onto it. The moves it’s making today should eventually pay off.
Bottom Line on MMAT Stock
MMAT may have been popular with the Reddit trading community before, but make no mistake: Meta Materials is more than just a meme stock. When it comes down to it, there’s huge potential for the company to turn its technology into a variety of billion dollar products.
MMAT stock currently earns an “A” rating in Portfolio Grader. If you want to “get in early” on what could wind up being a long-term winner, this may be your chance.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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