There are several reasons why the stock price of Applied DNA Sciences (APDN) has declined by 99% over the past 20 years.
- The long road to profitability: Applied DNA Sciences was founded in 1999, but it has never been profitable. The company has invested heavily in research and development, but it has not yet been able to turn those investments into profits. As a result, investors have become increasingly skeptical about the company's prospects, and the stock price has fallen.
- Competition: The anti-counterfeiting industry is a highly competitive one, and Applied DNA Sciences faces stiff competition from companies such as TruTag Technologies, InfraTrac, and Secureye. These companies have more resources and a longer track record of success than Applied DNA Sciences, and they have been able to gain market share at Applied DNA Sciences' expense.
- Market size: The market for DNA-based anti-counterfeiting solutions is still relatively small. This is because many businesses are still not aware of the benefits of this technology, or they are reluctant to invest in it. As a result, Applied DNA Sciences has not been able to generate enough revenue to offset its costs.
- Dilution: Applied DNA Sciences has issued a significant amount of new stock over the years in order to raise capital. This has diluted the value of existing shares, and it has also made it more difficult for the company to achieve profitability.
- Lack of confidence: Investors have lost confidence in Applied DNA Sciences due to its lack of profitability, its competitive challenges, and its small market size. This lack of confidence has led to a sell-off in the stock, which has further driven down the price.