Meta Materials (NASDAQ: MMAT) shares experienced a sharp decline of over 11% during the pre-market trading session on Thursday. This comes on the heels of an impressive rally just a day earlier.
On Wednesday, MMAT stock soared by a remarkable 38%, catching the attention of investors with an unusually high trading volume of 223,749,122 (223.74 million) shares, far surpassing the average of 10.59 million. The stock closed at $0.07, leaving many puzzled as no apparent catalysts, such as press releases, filings, or new analyst coverage, were there that could explain the sudden surge.
Investors need to be cautious. This is especially important given Meta Materials’ status as a penny stock, with a low closing price of 7 cents and a market capitalization of $40.99 million. This penny stock classification makes Meta Materials susceptible to certain risks, including potential manipulation by traders.
The current decline in MMAT stock, down 10.87% on Thursday morning, raises concerns of a possible “pump and dump” scenario. Investors should exercise caution with penny stocks prone to rallies without clear news, as they may be vulnerable to sudden market manipulations.
In November, Meta Materials (NASDAQ: MMAT) revealed that its QUANTUM stripe authentication product clinched two prestigious awards, Best Origination and Best in Show, at the 2023 International Hologram Manufacturers Association – IHMA Awards.
QUANTUM stripe is a groundbreaking banknote security solution rooted in META’s acclaimed KolourOptik® technology. It integrates dynamic movement, 3D stereoscopic depth, and multi-color effects within an ultrathin form factor. This cutting-edge technology guarantees advanced security and authentication standards in banknote production.
