It’s a green day in the market today, but few companies are seeing more green than Enovix (NASDAQ:ENVX) after announcing a massive order. Currently, ENVX stock is up more than 20%, with nearly 15X the average daily volume of shares trading hands. At today’s highs, this stock traded more than 36% higher compared to yesterday’s close.
Given that we’re in earnings season, investors may assume that this move is a result of some sort of massive beat. However, for this unique battery maker, this is not the case.
Today, Enovix announced an initial order of batteries to be used in smartwatches by a “leading global consumer electronics company.” As a maker of advanced, silicon-anode lithium-ion batteries, this is a big announcement.
Let’s dive into what this means for the company and why investors are so bullish on Enovix.
ENVX Stock Soars on Order Announcement
As a relatively early-stage battery company focused on re-engineering lithium-ion batteries, investors may rightly ascribe a higher level of risk to this stock. Execution risk is something investors in many companies battle. Many times, the market requires companies to show progress on commercialization before jumping in.
This announcement today appears to show the validation the market was hoping for with Enovix. The company’s CEO, Harrold Rust, pointed out the importance of this announcement:
“After more than a year of collaboration and testing with this important customer, we’ve completed the initial technology qualification process and are advancing to the next stage of their commercial procurement process. While we’re excited about this order, we believe it may ultimately lead to opportunities across multiple categories within their vast portfolio of products.”
Now, speculation as to who this leading global consumer electronics company is remains high. Whether we’re talking about Sony (NYSE:SONY), Apple (NASDAQ:AAPL) or another tech behemoth remains to be seen. Additionally, we do not yet know the exact size of this order. Thus, perhaps the market is getting ahead of itself with today’s move and correcting this morning’s price action with late-day selling.
We’ll see. But for now, investors have something to be excited about with ENVX stock. Today, I’ve put this stock on my watchlist as one to monitor going forward.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.