Meta Materials (NASDAQ:MMAT) Stock Sees Non-Stop Selling Pressure: Now What?
One of the stocks to have crashed in a big way over the course of the past week or so is that of Meta Materials (NASDAQ:MMAT) and the rout continued on Monday. Yesterday, the stock tanked by 17% and that took its losses for the past week to as much as 43%.
In light of the crash in the stock, it might be a good move for investors to look into the reasons behind the fall. Last week the company announced that it had managed to bring a long term project regarding a glucose monitoring device to a close. This product is meant for helping patients with monitoring their glucose levels without actually drawing blood.
The press release from Meta Materials also indicated that the product will still need to go through studies and then apply for approval from regulators. That shows that the product is not yet ready for a commercial launch.
However, it should be noted that the company went public only recently after a reverse merger deal with Torchlight Energy Resources. In the last quarter, the company could only generate $1 million in revenues and Meta Materials is still regarded as more of a start up. Hence, investors don’t seem to be impressed yet despite the positive news.
Market Reaction:
On Monday, MMAT stock fell 17% at $3.94 with more than 40.59 million shares, compared to its average volume of 18.23 million shares. The stock had moved within a range of $3.8800 – 4.8610 after opening the trade at $4.87. Over the past 52-week, the stock has been trading within a range of $0.4200 – 21.7600.
