- NASDAQ:MVIS gained 11.11% as the rest of the NASDAQ plunged deep into the red on Tuesday.
- Microvision is the next chosen company by r/WallStreetBets, earning its place as the newest meme stock.
- Microsvisions disappointing earnings call should be reason enough for most investors to stay away.
NASDAQ:MVIS is the new hot Reddit stock in town, as members of the r/WallStreetBets subgroup have piled into the laser technology stock over the past few weeks. On Tuesday, despite the broader markets having another bloody sell off, Microvision surged by 11.11% to close the trading session at $15.40. Shares have now returned nearly 1,000% to investors over the past year, with a 52-week trading range of $0.55 to $28.00. The stock gained on massive daily trading volume on Tuesday, as nearly 70 million shares changed hands, compared to the average daily volume of only 26 million shares.
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This kind of volume and volatility is textbook meme stock behavior, and indeed, Microvision has been adopted by r/WallStreetBets, the same subgroup that orchestrated the short squeeze of GameStop (NYSE:GME). Is Microvision legit? Well, the company has traded publicly for 25 years now and this is basically the most price action it has ever received. The Redmond, Washington company has always been thought to be an acquisition candidate by big tech companies like Microsoft (NASDAQ:MSFT), which is also based out of Redmond.
Microvision tumbled after its earnings report last week as it announced a year-over-year drop in sales from $1.5 million in 2020 to $0.5 million in 2021. The losses per share were the same as in 2020 at $0.04, but Wall Street was expecting a loss of only $0.02 per share, so Microvision came up short in that metric as well. Much of the optimism surrounding Microvision is its lidar technology which is thought to be integral for autonomous vehicles. Despite this, Tesla (NASDAQ:TSLA) CEO Elon Musk has refuted the need for lidar technology, and has said ‘anyone relying on lidar technology is doomed’.
