Meta Materials Inc (NASDAQ:MMAT) shares are trading lower by 24% to $2.55 during Monday’s session after the company late Friday announced a significant reduction in its workforce by approximately 80%, aiming to be completed in the coming weeks. This decision comes as a response to challenges related to liquidity and securing further financing.

The company says it is exploring various strategic options including asset divestiture, seeking additional financing, or even selling the company. Without financial support, Meta Materials says the company faces the possibility of closing facilities or undergoing bankruptcy proceedings.

Should I Sell My MMAT Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Meta Materials have lost 89.46% year to date. This compares to the average annual return of -79.45%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Meta Materials stock currently has an RSI of 58.83, indicating neutral conditions.

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MMAT has a 52-week high of $29.12 and a 52-week low of $1.80.

Why Meta Materials (MMAT) Shares Are Falling