Shares of WM Technology (MAPS -9.03%), a software infrastructure provider to the cannabis industry, were sliding today after the company reported a much larger loss for its bottom line than Wall Street was anticipating.
The tech stock had fallen by as much as 13% today and was still down 7.5% as of 2:10 p.m. ET.
WM reported a loss of $0.19 per share for the first quarter, which was far worse than analysts’ consensus estimate of a loss of $0.04 per share.
While the company missed Wall Street’s bottom-line average estimate, WM’s first-quarter revenue of $57.5 million — up 40% from the year-ago quarter — beat analysts’ average estimate of $55.2 million.
That revenue growth didn’t take the sting out of WM’s losses for the quarter, though.
Adding to the company’s share price slide today could be the fact that many investors were selling stocks following the Federal Reserve’s 50-basis-point rate hike yesterday. The S&P 500 had plunged 3.6% by midafternoon.
While investors are glad the Fed is tackling inflation — currently at a 40-year high — they’re also worried that aggressive moves from the Fed could end up spurring a recession.
Investors may want to be cautious with WM Technology’s stock right now. The company’s net loss in the first quarter was $31.2 million, a huge drop from its net income of $7.7 million in the year-ago quarter.
While revenue is moving in the right direction, investors may want to see a few more quarters of financial results to see if a pattern of losses emerges for the company or if its management can turn things around.
But with WM Technology’s share price down 66% over the past 12 months, it’s likely getting difficult for investors to stay patient.