Source: ilikeyellow / Shutterstock.com
Meta Materials (NASDAQ:MMAT) is still on a losing streak. The controversial functional materials company has proven that it can’t generate any significant momentum, even when it has good news to report. Today has brought more bad news as the firm reported its financial results for both Q4 2022 and the entire fiscal year. Following the recent Next Bridge Hydrocarbons spinoff that shareholders allege left them without shares, many investors were curious to see what Meta Materials would report. While it posted mixed earnings, MMAT stock is likely falling today due to the “going concern” that the company noted in its report.
At a time when shares are in a race to the bottom, these types of red flags are the last thing that investors want to see.
What’s Happening With MMAT Stock
This isn’t the worst trading day for MMAT stock, but it certainly isn’t the best. MMAT stock hit a new all-time low price of $0.46 today. As of this writing, it is down almost 11% for the day and shows no signs of a turnaround. Not that there is much reason for it to turn around. Words like “going concern” don’t tend to reassure investors that a company is on the right track. When we factor in its recent revenue miss, it’s hard to see any growth in the company’s future.
What exactly is the going concern that is pushing MMAT stock down today? It came up in the report as part of the section on identifying risk factors. Per a statement issued by the company:
“META has identified factors that raise substantial doubt about the Company’s ability to continue to operate as a going concern and to achieve compliance with NASDAQ continued listing requirements. META anticipates that it needs to implement expense reduction measures under its control and immediately raise additional capital to expand the commercialization of its products, fund its operations, further its research and development activities and ensure that it can continue to operate as a going concern.”
The company notes that it “may pursue” other areas of financing, such as selling or leasing company properties, joint project venturing, or debt or equity financing. However, that phrasing is hardly reassuring, particularly since it reads as speculation. Until Meta Materials shows that it can successfully raise capital and demonstrate sustainable growth, MMAT stock will remain an unstable buy, and the going concerns will persist.
On the date of publication, Samuel O’Brient did not hold (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.
