What Happened to the Desktop Metal Stock Price Today?
- Amid a broader slide in the market, Desktop Metal (NYSE:DM) stock dropped more than 5% on Tuesday. This continues what has been a multi-week downtrend in DM stock, during which shares of the next-gen 3D printing company have dropped from $35 to $10.
- Currently, DM stock is trading higher by 12.2%, up to $12 per share.
Why It Happened
- The market has fallen out of love with early-stage technology companies, especially those that came public through SPAC mergers. Desktop Metal is both early-stage and the product of a SPAC merger. As such, DM stock has unfortunately found itself on the wrong side of a massive momentum shift in the markets.
- But famed hedge fund manager Bill Miller — known for being a value investor — said on CNBC interview that he liked DM stock at current levels.
- This helped push the DM stock price higher in midday trading.
Does It Matter?
- It’s noteworthy that a value investor is bullish on DM stock, because valuation is really the only knock on Desktop Metal.
- This is a company that is on the cusp of changing the world with its breakthrough proprietary Single Pass Jetting technology that will create a new generation of hyper-fast, hyper-efficient, and hyper-affordable 3D printers.
- Over the next several years, this printers will make their way into factories all across the globe, and Desktop Metal will turn into one of the most important manufacturing equipment suppliers in the world.
- The fundamentals and growth potential here are very promising. The valuation is just extended at nearly 30X this year’s sales estimates.
- But with a famed value investor saying he likes the stock at current levels and Wall Street analysts putting out $20-plus price targets, it looks like DM stock may be a compelling “dip buy” for long-term investors.
DM Stock Price Forecast
- We agree with Wall Street analysts. Our modeling suggests that, based on the company’s long-term earnings growth potential, DM stock is worth at least $20 today, and likely closer to the $30 level.
- That doesn’t mean DM stock is going to reverse course anytime soon. The market, for whatever reason, hates early-stage technology stocks right now.
- But it does mean that if management executes and the company does grow as many predict it will grow over the next few years, then Desktop Metal stock is a potential multi-bagger from current levels.
Desktop Metal could score you huge returns from current levels. But it’s far from the only high-quality growth stock with huge upside potential that has gone on sale recently.
In fact, the market is full of stocks like Desktop Metal: High-quality companies with world-changing technologies, that have seen their stock prices slashed in recent months, and which from current levels, offer dip-buyers enormous upside potential.
These are the exact type of stocks we are recommending in our exclusive, venture-capital-style research service, Innovation Investor. We earnestly believe that the stocks sitting inside that portfolio will turn into the next Amazon (NASDAQ:AMZN), the next Facebook (NASDAQ:FB), the next Netflix (NASDAQ:NFLX), etc.
And the time to buy those stocks is right now, while they’re on sale.
To gain access to those potential 10X picks, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.
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The post Bill Miller Is Right About Desktop Metal Stock — It Could Soar to $30 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.