Steer Clear of This NASDAQ-Listed Tech Stock – MTTR

Matterport, Inc.

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

Key Highlights:

• Despite an increase in sales, the company's gross margin fell to 53.9% in FY21 (ended December 31, 2021) from 55.8% in FY20 due to a significant increase in the cost of revenues. It is significantly lower than the industry median of 78.3%.
• The company had recorded an increase in net losses to USD 338.06 million in FY21 from USD 14.02 million in FY20.
• The company's gross, EBITDA, and net margins are all much lower than the industry median in FY21.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the lower band of the 52-week range of USD 5.71 to USD 37.60.

Stock Recommendation

Based on a decline in gross profit, substantial increase in operating expenses, unclear outlook, and bearish technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 8.12, down 3.68% as of March 31, 2022.

1-Year Technical Price Chart (as of March 31, 2022). Source: REFINITIV, Analysis by Kalkine Group

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