Redmond, Washington-based MicroVision (NASDAQ:MVIS) is among a handful of tradable firms specializing in lidar (light detection and ranging). Anyone who sees a strong future for self-driving technology should buy MVIS stock.
To be more specific, MicroVision offers laser beam scanning (LBS) technology under the brand name PicoP. This technology enables MicroVision to create high-resolution miniature projection displays and lidar sensors.
As we’ll discover, MVIS stock has fallen towards the bottom of its range. Also, it’s been much higher and the next run-up could happen at any moment.
Of course, stocks don’t just fall to the bottom of a range without a reason. MicroVision’s recently reported fiscal data is probably to blame — but upon closer inspection, maybe the news isn’t so bad, after all.
MVIS Stock at a Glance
Would you believe that MVIS stock has been trading since the 1990s? You certainly can’t say that about every name in the lidar industry.
As recently as December of last year, the shares were trading below $5. In January 2021 however, the stock started to creep upwards, as if coiling for a huge move.
That move came with a bang in February, as MVIS stock surged above $27. However, the share price then retraced its way down to $15 and chopped around the level for a while.
Another powerful rally took place in April as the stock touched a 52-week high of $28. By May 27, though, it was once again, back to the $15 area.
Are the MVIS buyers re-loading for another move to $28 and beyond? Anything’s possible, and there could be a prime buying opportunity for lidar market aficionados here.
Beware of Speculation
Before we dig into the actual data surrounding the company, there’s a rumor-mill item that should be addressed.
There’s speculation going around that MicroVision is up for sale, potentially even a buyout target of one or more famous companies.
You might have heard the old financial market saying that goes, “Buy the rumor, sell the news.”
Don’t misconstrue that old saying. It’s generally not recommended to just buy a stock based on what’s being passed around the rumor mill. Trying to guess whether a buyout is in the works, or which company might acquire MicroVision, isn’t a game worth playing.
It’s possible that the rumors were sparked by an 8-K filing which included a change-of-control provision for MicroVision CEO Sumit Sharma.
That filing does indeed include change-of-control details concerning base salary, bonus compensation and long-term incentives.
This shouldn’t cause informed investors to jump to conclusions. It’s better to just stick to the data as it’s presented to us.
Addressing a Vast Market
Speaking of sticking to the data, there’s no doubt that MicroVision is operating in a multi-billion-dollar market.
A report published by Fortune Business Insights projects that the global lidar market will reach a whopping $6.71 billion by the year 2026.
On top of that, the industry is expected to expand at a compound annual growth rate (CAGR) of 22.7%.
Among the cited growth catalysts is “increasing investment in research and development [which] has yielded several new and innovative products.”
MicroVision’s PicoP would certainly fit into the category of “new and innovative products.”
Moreover, Sharma recently revealed that his company remains “on track in advancing our automotive lidar development program as the Company completed its A-Sample lidar hardware and development platform on schedule.”
Sharma even hinted that a new product could be available for sale, in initial quantities, during this year’s third or fourth quarter.
And while some folks didn’t like MicroVision’s first-quarter revenues of $0.5 million, the fiscal picture really shouldn’t disappoint the investors.
Indeed, it’s encouraging to know that MicroVision ended the first quarter well capitalized, with $75.3 million in cash and cash equivalents.
That’s a vast improvement over the $16.9 million reported at the end of the 2020’s fourth quarter.
There’s no need to buy MVIS stock based on what’s being passed around the rumor mill.
Instead, investors can consider owning a stake in MicroVision because it’s a leader within a market that’s poised for multi-year growth.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.