SPECIAL REPORT The Top 7 Stocks for 2024

MMAT Stock: Meta Materials Reports Revenue Drop, $8.3 Million in Purchase Orders

Advertisement

  • Meta Materials (MMAT) has released its Q3 earnings report, and shares are not responding well.
  • MMAT stock has been struggling ever since, likely because Q3 revenue is down.
  • On top of that, the company presented its results in a way that should cause investors to proceed with caution.
MMAT stock - MMAT Stock: Meta Materials Reports Revenue Drop, $8.3 Million in Purchase Orders

Source: luchschenF / Shutterstock.com

A recent press release from Meta Materials (NASDAQ:MMAT) provides a good reminder for investors to read company communications carefully. When the functional materials company reported third-quarter earnings, it released a statement summarizing its financial results for the quarter. At first glance, it seems as though the company has made significant progress on multiple fronts, leading investors to question why MMAT stock is down.

However, a closer look reveals that the company presented its results in a way that could mislead less-informed investors.

What’s Happening With MMAT Stock

As of this writing, MMAT stock is down around 5% for the day amid strong volatility. While the company reported $8.3 million in purchase orders that it claims will be reflected in the next quarterly earnings report, there are still two key takeaways that should concern investors. Firstly, Q3 revenue is down from last year, indicating that Meta Materials isn’t making good progress on any front. But more importantly, the company chose to highlight information that hardly matters anymore. Per the statement released:

“In the third quarter of 2023, total revenue was $2.2 million, favorably compared to $2.0 million in the second quarter of 2023. Third quarter results modestly lagged the $2.5 million in the third quarter of 2022.”

Rather than make clear from the start that Q3 revenue is down, Meta Materials kicks off the press release by highlighting that it is up slightly from the previous quarter.

Let’s examine that in context. Yes, it’s true that Meta Materials’ revenue has increased slightly from the previous quarter. However, as this report is for Q3, that barely seems relevant. Investors should be more concerned with the fact that the company’s Q3 revenue is down and that its future remains highly questionable at best.

When things like this happen, it is hard not to be reminded of Meta Materials’ checkered past. MMAT stock has remained relevant due to meme stock speculation that has never translated into growth.

Appointing a new CEO hasn’t helped share prices, and bankruptcy rumors continue to cast dark shadows over the struggling company. Now, this Q3 earnings report has given investors even more incentive to avoid MMAT as it prepares to finish the year deep in the red.

On Penny Stocks and Low-Volume Stocks: 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 

On the date of publication, Samuel O’Brient 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.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/mmat-stock-meta-materials-reports-revenue-drop-8-3-million-in-purchase-orders/.

©2024 InvestorPlace Media, LLC