Is MicroVision (NASDAQ:MVIS) Stock a Good Buy Around $15?
5:51 pm Thursday, May 27th, 2021
Earlier this year, a historic new trend exploded on to the stock market in the form of ‘meme stocks’. Retail investors from the Reddit community WallStreetBets targeted certain stocks and eventually sent the prices soaring due to the existing short interests in those stocks.
Since then, many other stocks have had such moments and in recent times it is the MicroVision (NASDAQ:MVIS) stock that has managed to make considerable gains due to such targeting from the WallStreetBets community. Over the course of the past six months alone, the stock has clocked gains of 583% and in light of such gains it might be a good move for investors to take a closer look at MicroVision.
While the gains are enormous, it is also necessary to point out that the growth prospects of MicroVision over the long term are not as clear cut. The company came into focus among many investors due to its work on lidar technology, which could be deployed in the potentially fast-growing autonomous vehicle industry.
However, it is also true that if MicroVision is to serve a growing industry then it would need to scale up its business considerably as well. If it fails in doing so then the company might be overtaken by a fair distance by many of its peers.
The stock really blew up last month when discussions surrounding the stock hit a fever pitch on the WallStreetBets forum. The retail investors used the tried and tested tactic of creating a wave on social media and then encouraging people to buy the stock.
When that happens, it leads to a short squeeze and the large numbers of short-sellers have to sell the stock in order to limit their losses. That sends the stock higher and that is exactly what happened with the MicroVision stock. Considering the fact that MicroVision remains one of the most shorted stocks in the market, the whole thing proved to be particularly rewarding for the investors.
