Shares of WM technology (MAPS -7.99%)a provider of software infrastructure to the cannabis industry, slipped today after the company reported a much larger profit loss than Wall Street expected.
The tech stock had fallen 13% today and was still down 7.5% as of 2:10 p.m. ET.
WM announced a loss of $0.19 per share for the first quarter, which was much worse than analysts’ consensus estimate of a loss of $0.04 per share.
While the company fell short of Wall Street’s average estimate, WM’s first quarter revenue of $57.5 million – up 40% from the year-ago quarter previous — topped analysts’ average estimate of $55.2 million.
This revenue growth, however, did not mitigate WM’s losses for the quarter.
The fact that many investors were selling stocks after the Federal Reserve’s 50 basis point rate hike yesterday could add to the decline in the company’s stock price today. the S&P 500 had plunged 3.6% by mid-afternoon.
While investors are happy that the Fed is tackling inflation – currently at a 40-year high – they are also worried that aggressive action by the Fed could eventually trigger a recession.
Investors may want to be cautious with WM Technology shares at this time. The company’s net loss in the first quarter was $31.2 million, a huge drop from its net profit of $7.7 million in the year-ago quarter.
As earnings trend in the right direction, investors may want to see a few more quarters of financial results to see if a loss pattern emerges for the company or if its direction can turn the tide.
But with WM Technology’s share price down 66% in the past 12 months, it’s likely becoming difficult for investors to remain patient.