Is Meta Materials (NASDAQ:MMAT) A Good Buy or Sell after The Roller Coaster Ride
5:58 pm Thursday, August 05th, 2021
When it comes to the stock market, investors need to be able to identify which stocks are the real deal and which stocks may be getting attention due to a fair degree of hype. One of the stocks that might be in the latter category is that of Meta Materials (NASDAQ:MMAT).
The company is involved in the materials research space and while it may have a number of patents, it is also necessary for investors to look a bit more closely into the scale of its operations. For instance, the work that is being done by the company could actually be done by a tiny division in any large company like say Lockheed Martin.
The patents that are owned by the company are not particularly impressive either and it is believed that most of those patents are not worth much if the company cannot actually get hold of the right partners. At this point, those patents may as well be as good as playing cards. However, it is true that some of the patents owned by the company could have applications in high-value sectors like the medical sector, defense and automotive.
On the other hand, a look at the financials makes it clear that the company is not exactly in the pink of health. Back in 2018, Meta Materials had revenues of as much as $1.3 billion but in the first quarter of this year, the company generated only $2.5 million in the form of revenues. Hence, it appears that the current buzz around the stock may be all hype.
