Matterport, Inc.

Matterport, Inc. (NASDAQ: MTTR) is a spatial data firm specialising in digitising and indexing the built environment. Its all-in-one 3D data platform allows anyone to transform any environment into a precise and immersive digital twin that can be used to design, create, operate, promote, and comprehend any space.

Key Highlights:

• The company's gross profit was decreased to USD 14.18 million in Q3 FY21 compared to USD 15.06 million in Q3 FY20 despite an increase in revenue, due to a substantial increase in the cost of revenue.
• The company had recorded a loss from operations of USD 44.36 million in Q3 FY21 from the gain of USD 1.26 million in Q3 FY20, due to a high increment in operating expenses.
• The company might be exposed to the risk of limited resources and a high level of competition, which will enable it to consummate in its initial business combination.
• The stock is trading below EMA 50 of ~16.01 and EMA 100 of ~17.85, along with death crossover, indicating bearish momentum.
• The stock is leaning towards the 52-week low of USD 7.50.

Stock Recommendation

Based on a decrease in gross profit, substantial increase in operating expenses, resources and competition risks, and bearish technical indicators. We suggest that investors keep an eye on the stock before adding it to their portfolio. Hence, We recommend an "Avoid" rating on the stock at the closing market price of USD 8.38, up 3.2%, as of February 04, 2022.

 MTTR’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

*The reference data in this report has been partly sourced from REFINITIV.