- NASDAQ:MVIS rises 27% on Tuesday after CEO Sumit Sharma’s interview.
- Retail investors remain bullish, but Wall Street is skeptical of the company.
- Thursday's early price action suggests a drop below $2, a sharp fall.
Update: Pre-market trading figures are showing that Microvision has finally attracted some bargain-seekers – changing hands at $1.81, up nearly 6% on Monday. NASDAQ: MVIS shares had a roller coaster open to August, surging above $2.50 amid acquisition rumors only to lose the $2 level and revert back to mid-July levels. It is essential to note that the tech firm is defying the damp mood in markets, amid worsening Sino-American tensions.
NASDAQ:MVIS has surged once again on Tuesday, as the stock closed the trading session up a phenomenal 27%, ending the day at $2.54. Overall, MicroVision investors have enjoyed a 66% gain in the last month, despite several Wall Street analysts downgrading the price target of the stock – and expressing their concerns over the influence of retail investors on the fluctuating stock price.
Update 4: Microvision is on course to close the week in the red, changing hands at $1.84 at the time of writing. Shares dropped to $1.75 earlier in the day, but have somewhat recovered. Nevertheless, it seems that demand is lacking. Markets are focused on Sino-American tensions. See Reports US to sanction Hong Kong leader Carrie Lam
Update 3: NASDAQ: MVIS is set for a Friday of further fear – a decline of around 5% after shedding around 25% on Thursday and hitting a low of $1.89. The fallout from the rally – inspired by hopes and rumors that the company would be acquired – is set to extend. For those looking for bullish stocks, Vaxart looks interesting.
Update 2: The pre-market sell-off has been spilling into Thursday's full session, with NASDAQ: MVIS trading at around $1.94 at the time of writing, a collapse of shares. As mentioned earlier, hopes for a buyout seemed to hit a wall. Will Microvision's successful products prompt bargain-seekers to scoop up the shares? That remains an open question. Another stock of interest could be Novavax. NVAX, which has three reasons to rise.
Update: Microvision Inc. is set to kick off Thursday's trading session with a sharp fall below $2 – a crash of over 20%. It seems that hopes for the company to be purchased have failed to gain traction. If NASDAQ: MVIS closes the week under that level, it would revert to prices last seen in mid-July.
Wolfpack Research was one of the latest Wall Street firms to downgrade the scanning technology company, stating that the optimism over a supposed $1 billion price tag for the firm is ‘ridiculous’. On Monday, White Diamond Research also argued that MicroVision’s scanning technology is ‘worth very little’.
MicroVision CEO Sumit Sharma fired back on Tuesday through an interview posted on a website dedicated to mergers and acquisitions news. Sharma insisted that the company is currently weighing several options of a possible buyout, including offers from companies in the automotive and augmented reality spaces. Responding to the interview, MicroVision shot to the moon – just another indication of how volatile this stock can be.
MVIS Stock Forecast
MicroVision’s share price is inching towards its 52-week high of $3.45 per share. With the company set to announce its quarterly earnings on August 5th, Sharma’s timing with the interview could not be better. Investors will want to tread carefully with MicroVision’s stock as numerous downgrades from multiple Wall Street analysts is never a promising outlook. The long-rumored Microsoft buyout seems to have been put to rest with Sharma only mentioning interest from automotive and augmented reality companies. While the news of a potential buyout could make it into their earnings call, Sharma’s comments appear to be more in the vein of posturing and saving face, than a legitimate reason to get excited.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.