DM - Acquisition Spree Can't Mask Desktop Metal's Fiscal Challenges
Desktop Metal (NYSE: DM) is one of the few companies solely focused on 3D printing with a wide array of different substances, giving investors exclusive exposure to a high-growth niche market. Indeed, the company expects the additive manufacturing market to increase more than 11 times over, from $12 billion to $146 billion, by 2030. However, the company can't expect to survive and thrive long-term with this emerging industry if it's continually operating at a loss. Prospective investors can't ignore the fact that Desktop Metal has gone on a major buying spree, boosting its sales -- at the apparent expense of its profitability.
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Desktop Metal's recent revenue growth is undeniable: Q2 2021 revenue totaled $19 million, up 68% from the first quarter of 2021, and an increase of 767% over the second quarter of 2020.
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Acquisition Spree Can't Mask Desktop Metal's Fiscal Challenges