Meta Materials Inc (NASDAQ:MMAT) Stock Extends Fall: Time To Buy Now?
Shares of Materials innovation company Meta Materials (NASDAQ:MMAT) plummeted by 35% last week on heavy volume after the firm confirmed a new glucose monitoring prototype last week. On Friday, the stock ended lower by 17.50% as well. Nevertheless, despite the recent slump, the stock is still up 235% so far this year.
The company had confirmed ending a multi-year project for developing a non-invasive at-home glucose sensing device. This device allows patients to gauge glucose levels without taking out blood. However, the prototype is yet to get approval from regulatory bodies demonstrating it is far from commercial availability. Post its reverse merger with oil and gas producer Torchlight Energy Resources, Meta Materials only commenced trading on the stock exchange.
Meta Materials raised more than $250 million for moving ahead with advanced technology. However, its sales in previous quarter at less than $1 million shows that it is still in start-up mode and is far from getting any profits.
Though the firm has a market capitalization of around $1.8 billion, its shareholders should not expect much except volatility. The firm has high goals of having breakthrough technology to ensure commercial success but it doesn’t have any proven products, making Meta Materials a stock that is extremely speculative in nature for any investor looking to go big.
Market Reaction:
On Friday, MMAT stock fell 17.40% at $4.75 with more than 26.48 million shares, compared to its average volume of 17.99 million shares. The stock had moved within a range of $4.7200 – 5.6400 after opening the trade at $5.64. Over the past 52-week, the stock has been trading within a range of $0.4200 – 21.7600.
