DM - Desktop Metal Stock Jumps Following Earnings Release. Is It a Buy?
Shares of Desktop Metal (NYSE: DM) gained 11.6% on Tuesday following the 3D printing company's release of preliminary fourth-quarter and full-year 2021 results on the prior afternoon. And shares climbed 5.8% on Wednesday, though they were helped by a strong tailwind from the overall market, as the S&P 500 and Nasdaq Composite jumped 2.6% and 3.6%, respectively. For context, on Wednesday, shares of rival 3D Systems rose 5% on no news.
No doubt, investors liked that Desktop Metal's fourth-quarter revenue and full-year 2022 revenue guidance came in higher than Wall Street had been expecting, and that the Production System P-50 is now in the commercialization stage.
On the other hand, the company continues to post large losses and burn through cash at a rate that points to a likely stock offering on the not-too-distant horizon.
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Desktop Metal Stock Jumps Following Earnings Release. Is It a Buy?