Louis Navellier is rating this stock an “A” – Get In Now!

On May 24, the man who found “the stock of the century” will reveal one of his top stocks for 2022 – for FREE – in a special presentation.

Tue, May 24 at 4:00PM ET
 
 
 
 

Why Is Desktop Metal (DM) Stock Plunging 40% Today?

Desktop Metal (NYSE:DM) stock is falling hard on Tuesday following the release of the 3D printing company’s earnings report for the first quarter of 2022.

A close up photo of a 3D Printer representing DM stock.

Source: Pixel B / Shutterstock.com

The bad news for DM stock begins with the company’s adjusted earnings per share of -22 cents. While that’s an improvement over the -25 cents reported in Q1 2021, it fails to meet the -13 cents per share that Wall Street was expecting.

However, the company’s revenue of $43.7 million was able to surpass the $41.61 million that analysts were looking for. It’s also a 286% increase compared to the $11.31 million reported during the same period of the year prior.

It’s also worth noting that Desktop Metal reaffirmed its revenue outlook of approximately $260 million for the full year of 2022. If that holds true, it would have it beating out Wall Street’s revenue estimate of $255.13 million for the year.

While those last couple points are positives, there’s one more major bit of news hammering DM stock today. The company revealed that it plans to raise money through issuing debt. This has it seeking to sell $150 million worth of convertible senior notes due 2027. Initial purchasers of the notes also have the option to acquire an additional $22.5 million worth of notes 13 days after the initial offering.

All of this news has shares of DM stock seeing heavy trading on Tuesday. That has some 21 million shares on the move as of this writing. To put that in perspective, the company’s daily average trading volume is around 5.7 million shares.

DM stock is down 42% as of noon Tuesday.

There’s more stock market news for hungry investors to sink their teeth into below!

We’re serving up all of the hottest stock market coverage in one place! For Tuesday, that includes what’s happening with shares of Palantir Technologies (NYSE:PLTR) stock, GoodRx (NASDAQ:GDRX) stock, and General Motors (NYSE:GM) today. You can dive into that at the links below!

More Tuesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More:Penny Stocks — How to Profit Without Getting Scammed


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/why-is-desktop-metal-dm-stock-plunging-40-today/.

©2022 InvestorPlace Media, LLC