Since I last wrote about it, Meta Materials (NASDAQ:MMAT) stock traded sideways. Yet that doesn’t mean the oil and gas turned metamaterials play has bottomed out following its post-meme collapse.

As you may recall, shares in the former Torchlight Energy shot “to the moon,” ahead of a reverse merger that created the entity we are talking about today. At the height of the frenzy, MMAT stock hit a split adjusted high of $21.76 per share.

Now down more than 85% off its high, some may see it as a bargain at $3.55 per share. But as before, the stock still trades at a price far above its fair value. Today’s price fails to discount for the risk its long-term possibilities fail to pan out.

Meta Materials has come a long way since shifting its focus away from oil and gas. It is currently working on projects for a number of fields. Its work ranges from potential de-icing and de-fogging technologies for aerospace projects to augmented reality applications for prescription eyeglasses.

Some may see MMAT stock, which last month was one the most talked about on Reddit’s r/WallStreetBets subreddit, as a name that could rally again.

Why MMAT Stock Isn’t Worth $929 Million Today

Dive into its financials and it’s clear Meta Materials still trades at an inflated valuation. Currently, the company generates only around $600,000 per quarter in sales ($2.4 million annualized). Compare that to its current market capitalization of around $929 million.

Given the long-term potential for its metamaterials technology, it makes sense for MMAT stock to sport some sort of valuation premium. Metamaterials are set to see steadily increasing demand over the next few years. These electromagnetic materials can be used to develop products in demand with numerous fast-growing industries.

These include products for use in lidar driving systems, as well as for use with 5G communications. There’s also its big opportunity in the world of health care, as seen with its development of a non-invasive glucose monitoring device.

What’s the issue valuing Meta Materials at $929 million? This valuation fails to take into account other variables.

For one, years away from hitting big success with these products, some sort of discount needs to be applied. Also, as InvestorPlace’s Mark Hake discussed late last month, it’ll likely endure heavy cash burn before Meta Materials’ business starts to scale up. As it ceases to trade based on online hype, expect these factors to become more top of mind, which in turn will put more downward pressure on shares.

It’s Best To Look Elsewhere

Buying MMAT stock today makes little sense if you’re buying based on its fundamentals. But that’s not the only way some people may approach it. Even as the meme stock trend has again gone into standby mode, some may believe another wave is just around the corner.

Will another wave happen? There is a chance that the meme stock/Reddit stock trend isn’t going anywhere. But will that provide any boost for Meta Materials shares? It’s questionable.

Much like some of the other also-ran Reddit stocks, I don’t see this becoming an AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), or even something like Clover Health (NASDAQ:CLOV). There isn’t enough popularity as a meme stock to keep MMAT stock elevated.

If we see a third meme stock wave, don’t count on investors piling back in to MMAT stock. If you’re looking for a stock that will soar again if this trend carries on, you’re better off sticking to the names at the top of the r/WallStreetBets Trackers list.

There’s Still Little Reason to Buy Meta Materials

Meta Materials shares are overvalued, and its chances of soaring again on another meme stock wave are up for debate. But you may still think it has room to bounce back, thanks to its most recent announcement. I’m referring to news of its acquisition of nano-optic security products company Nanotech Security (OTCMKTS:NTSFF).

Deploying the cash it raised from dilutive secondary offerings into new acquisitions is likely a wise move. It could help soften the blow as the hype around this stock continues to fade. But considering Nanotech Security, like the Meta Materials itself, generates just a few million in sales and is operating in the red, I don’t see this the deal as moving the needle here.

Bottom line: with its valuation still too high, and its low chances of benefiting from a continuation of the meme stock phenomenon, investors should stay away from MMAT stock.

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On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, a contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.