Meme stock trading continues, bringing MicroVision (NASDAQ:MVIS) along for a perhaps undeserved ride.
Does MicroVision have what it takes to come out on top?
MVIS Stock: Lots of Promises, Lots of Questions
At first glance, MicroVision appears to make claims that they don’t back up.
Dig a little deeper and… One finds that these claims are, indeed, not substantially backed up.
MicroVision’s website is lacking — they say they’ll be updating it soon — but more concerning is their staggering lack of information. As a tech company, there’s absolutely no reason why this company’s news landscape is so unfathomably barren. And the press releases and news that they do have aren’t all that informative.
Apart from two conceptual videos that are less than a year old, nearly all of their news that isn’t management and finance-related harkens from 2019 or earlier.
Contrast this with Luminar’s present-year partnership announcements, product launches, and mainstream media coverage.
And maybe you can see why you should ride the LiDAR wave with MicroVision’s competitors instead.
Other LiDAR companies have substance.
Technology progresses so quickly that “no news is good news” simply doesn’t hold true here. No news, in the case of tech companies, isn’t good. It either means their technology isn’t up to par or that it isn’t ready to be demonstrated yet.
Neither of these scenarios bodes well for MVIS stock.
Not a Lot of Substance Behind MVIS Stock
In their latest shareholder meeting, they were asked about being late to the game compared to other LiDAR companies — other companies are amassing partnerships while MicroVision works to release anything commercially. They responded by saying they believe they aren’t too late, that interested parties will recognize MicroVision’s competitive advantages.
But companies will need to be explicitly shown MicroVision’s technological advantage sooner or later. Saying you have an advantage won’t draw partnerships and investor interest, if nobody is allowed to peek behind the curtain at the technology itself.
The company announced in February of this year that it would have samples of it’s first generation LiDAR sensors ready to be tested in April. Then, in April, they gave the same spiel as before about their LiDAR tech’s top-notch features before announcing a limited launch in Q3 or Q4.
But, if their technology is far enough along to be launching later this year, shouldn’t they have more to show for it?
Sure, MVIS stock is doing well now, but we’re looking to the future, after the present momentum shifts to different companies.
Why Some Meme Stocks Succeed
We’ve previously highlighted some stocks that have the greatest chance of post-meme success, such as Bed Bath & Beyond (NASDAQ:BBBY). When other stocks’ bubbles burst, we think companies such as this will break through to the other side because of their underlying fundamentals.
With Bed Bath & Beyond, for example, we see the potential for long-term growth and re-inventive changes, thanks in part to its relatively new management team.
During the Covid-19 pandemic, this formerly antiquated retailer saw three consecutive quarters of growth.
The company, despite being a meme stock, has been proving to investors it can turn itself around.
This contrasts with other meme stock companies that have begun to reinvent themselves after receiving massive social momentum swings.
And it contrasts even more starkly with companies who’ve remained unchanged in their plans and promises.
We believe MicroVision fits into this latter meme stock camp.
The Bottom Line on MVIS Stock (and a Better Lidar Bet)
Investing in MVIS stock could net you huge gains. All meme stocks carry that potential.
But, while MicroVision exists in a socially influenced world of volatility and uncertainty, Luminar resides in a realm of technological-grounded stability.
As previously mentioned, they have more press coverage and more partnerships.
Let’s dive into that a bit more really quickly.
For one, Luminar has partnered with the likes of Volvo, Airbus, China’s largest automaker SAIC and the list goes on. In addition to manufacturers, they’ve partnered with big-name automotive industry organizations that each contributes significantly to how the industry shapes up.
Perhaps more important than partnerships, they also already have products currently available.
While MicroVision purportedly finishes it’s technology throughout the rest of 2021, Luminar is producing.
Besides, we see LAZR stock as having just as much upside potential as MVIS, if not more. LiDAR and autonomous driving will be the future, sooner or later. And now’s the best time to get in on the action with the right company.
So why wouldn’t you bet on the the far more promising, technologically superior competitor. A competitor that has repeatedly shown it can deliver on its promises — something MicroVision is still trying to figure out how to do.
Those are our reasons for taking a bullish stance on LAZR, but we have so many more picks we would like to share with you that have equally grand growth potential.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.