Dissecting the Xometry Stock Short Report

February 15. 2023. 7 mins read

“Never fall in love with a stock,” as the old saying goes. This implies you should always be open to criticisms of stocks you’re holding, even if they come from people who are financially motivated to spread bad news about a company. Short sellers who issue scathing reports epitomize the term “conflict of interest,” yet they also serve a useful purpose. With the amount of rubbish companies out there, at least someone is sounding the alarm.

Given their financial incentives, short reports should be taken with a grain of salt, but not ignored. Some short sellers look for opportunistic trades, with most profits reaped in the days that follow the report being released. Others hope to ride the short train to zero, and these critics often point out the likelihood of systemic failure based on business models that aren’t economically viable. Two recent examples of such accusations involve synthetic DNA producer Twist Bioscience and distributed manufacturing leader Xometry. Today, we’re going to explore the Culper Research Xometry short report in greater detail.

The Xometry Short Report

Culper describes Xometry as “an increasingly commoditized middleman for engineers and tinkerers seeking prototyping and small run parts,” a description that matches our recent piece on Distributed Manufacturing – A Case Study Unfolding. One concern is that the total addressable market (TAM) for all forms of distributed manuf

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