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Desktop Metal - AI Stock Analysis

Analysis generated April 14, 2025

Desktop Metal, Inc. (NASDAQ: DM) is a prominent player in the 3D printing industry. Headquartered in Burlington, Massachusetts, the company specializes in providing metal and polymer 3D printing systems tailored for both mass production and high-performance applications. The company’s mission is to make additive manufacturing accessible to engineers, designers, and manufacturers, significantly reshaping the fabrication landscape.

Fundamental Analysis

The latest financial results show a mixed bag for Desktop Metal. Revenue for the last quarter came in at $36 million, a decline of 6.49% compared to the previous quarter. This drop could be a signal for potential headwinds the company might be facing. Additionally, compared to the same quarter last year, revenue is down 14.84%, indicating a considerable year-over-year decline that investors should closely monitor.

On a more positive note, net income for the last quarter was $35 million, up 65.73% compared to the prior quarter and an increase of 23.56% compared to the same quarter last year. This uptick in net income suggests improved operational efficiency and tighter cost control.

EBITDA for the last quarter stood at $26 million, showing an increase of 13.31% from the previous quarter and 20.30% year-over-year. Positive EBITDA growth can be a strong indicator of a company's improving core operations and financial health.

Technical Analysis

As of today, Desktop Metal’s stock price is $4.96, signaling a robust short-term growth trajectory, up 99.20% compared to a month ago. However, the stock is down 42.26% over the past year, which raises concerns about its long-term viability.

The stock’s trend is currently neutral. The current Simple Moving Average (SMA10) of $4.96 is equal to the previous SMA10, suggesting a lack of significant momentum in either direction. The Relative Strength Index (RSI) stands at 51.6, indicating a neutral condition.

Alternative Data Analysis

Examining alternative data sources sheds further light on Desktop Metal’s current position:

• Job Postings and Employee Sentiment: Desktop Metal has 0 open positions, down by 100% in the last couple of months, which could indicate efforts to cut costs or improve margins. This is concerning for a growth-oriented company. Only 6% of employees have a positive business outlook, a sharp drop of 14% recently, raising alarms about internal sentiment.
• Customer Acquisition: The company’s website has an estimated 44,000 visitors, down by 6% in the last couple of months. This decline could indicate a shrinking customer base.
• Customer Engagement: Desktop Metal’s Instagram page has 8,400 followers with no change, and the Twitter page has 15,000 followers, down by 1% over the last couple of months. These figures suggest waning interest in the company.
• The AltIndex AI score, which aggregates various data points to predict stock performance, rates Desktop Metal at 28, a strong sell signal.

Conclusion and Recommendation

Based on the comprehensive analysis, Desktop Metal presents a mixed picture. The positive trends in net income and EBITDA indicate some operational efficiencies, yet the declining revenue and alternative data raise substantial concerns. The stock’s short-term price performance is encouraging, but the longer-term outlook remains dubious given the recent declines in employee and customer engagement metrics. Investors should approach this stock with caution and consider monitoring for signs of either recovery or further decline before making a move.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.