What happened
Stocks saw volatile swings again today, but Nano Dimension (NNDM +0.00%) still managed to close out the day's session in the green. The 3D-printing specialist's share price closed out Wednesday's trading up roughly 4.8%.
The stock had been up by as much as 12.8% in the daily session, but the Federal Reserve's confirmation that it would soon be raising interest rates to help curb inflation prompted pullbacks across the market. The tech-heavy Nasdaq Composite index had been trending toward a big positive close, but it slipped and ended the day roughly flat after investors digested the news from the Fed.
Image source: Getty Images.
So what
The stock market started this week on a turbulent note, with concerns that Russia could push into Ukrainian territory, adding another negative catalyst amid a litany of macroeconomic risk factors already worrying investors.
Stocks rallied at the open today on signs that concerns about immediate conflict between the two countries may have been overblown. But market momentum reversed following comments from Fed chairman Jerome Powell pointing toward substantial rate hikes this year.
Nano Dimension specializes in machines for the creation of semiconductors and other high-end electronics components. The Israel-based company has massive long-term growth potential, but there's also limited visibility on its business trajectory, and the stock has been hit hard as investors have become more cautious about speculative growth plays.
Now what
Even with some significant pricing recovery in today's trading session, Nano Dimension stock has slid roughly 79% over the last year.
NNDM data by YCharts.
The company now has a market capitalization of roughly $900 million, but its valuation remains highly growth dependent. Revenue surged roughly 107% in its first three 2021 quarters compared to the previous year's stretch, but it still posted just $2.96 million in sales in the period.
Sales seem to be on track to continue expanding at a rapid clip, but Nano Dimension has also been relying on issuing new shares in order to fund its operations and growth initiatives, and that sets up a risky dynamic at a time when the market has become increasingly skittish about unprofitable companies.
