Why Xometry Stock Was Zooming Higher This Week

Next-generation manufacturing platform developer Xometry (NASDAQ: XMTR) was shaping up to be a big winner on the stock exchange this week. Thanks to news that a veteran executive at a top company in the industrial sector was joining its board of directors, the stock saw a decent pop in price. It was up by more than 13% week to date as of Friday before market open, according to data compiled by S&P Global Market Intelligence.

A veteran executive will help oversee the company

On Thursday, Xometry announced that Roy Azevedo had been appointed a seat on the board. Azevedo is the former president of two business units within industrial sector titan RTX; he recently served in the position in its space and airborne systems, plus the intelligence and space unit. At the moment, he serves as an advisor to that company; all told, his tenure there spans more than 30 years.

In its press release heralding the appointment, Xometry wrote Azevedo is "a highly regarded executive whose background in engineering and deep expertise in global manufacturing and supply chain management makes him an excellent addition to our board."

In contrast to RTX, Xometry is a relatively new arrival on the stock exchange. It completed its initial public offering (IPO) in 2021. The company, which harnesses artificial intelligence (AI) to power its solutions, is still in something of a growth phase and has not yet posted a bottom-line profit.

Experience always welcome

For the most part, board appointments are not make-or-break events. That said, it's always encouraging when a young and hungry company manages to draft a person with long experience in a relevant business, and Azevedo more than qualifies. It's not surprising that investors were encouraged by Xometry's move.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy.