Energous Corp (NASDAQ:WATT), a developer of the often-ballyhooed technology of wireless charging, is starting the new year off on the right foot. WATT stock started Tuesday’s trading up more than 6%.
Known for its “WattUp” wire-free charging tech, which enables wireless charging from as far as 15 feet, Energous just struck a multimillion-dollar partnership with JT Group, a telecom offering mobile and fiber-optic broadband solutions. The company plans to invest $5 million in WATT stock, and will act as vital infrastructure support for Internet of Things customers using WattUp.
The partnership resonates with WATT stock holders partly because of the necessity of IoT to Energous’ business model.
“IoT is a priority market for Energous and this partnership with JT Group satisfies the industry need for cellular and other connectivity for IoT devices,” Energous President and CEO Stephen R. Rizzone said. “The partnership with a Tier-1 telecommunications carrier like JT Group represents strong validation for Energous as we continue to expand our IoT ecosystem and the breadth of WattUp-enabled consumer products, the first of which will be available in early 2017.”
As for JT Group, the company is “delighted” and hopes Energous’ technology will be a “key enabler in the Internet of Things.”
This isn’t the first time WATT stock has popped in the past month. Recently, WATT jumped 10% after it was reported that Apple Inc. (NASDAQ:AAPL) may be partnering with Energous. The rumor had been bandied about before, but a research report reignited speculation as it suggested a former Apple product manager, Billy Manning, was helping WATT win regulatory approval.
WATT stock has cooled off a bit since then, as there are still several risks posed with Energous’ WattUp tech. The aforementioned regulatory approval is a tremendous hurdle, as the health risks with its wire-free tech cannot be ruled out just yet. It’s also at least partly to blame for the near-30% of WATT’s float occupied by short sellers. Those shorts are also the reason for quick pops on any bit of good news.
As we head into CES, expect to hear a lot more about Energous’ WattUp technology, as well as more tech jargon concerning the Internet of Things, connected homes and pretty much anything wireless.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.