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MicroVision Inc. (MVIS) stock surged in the after-hours session; here’s why

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In the after-hours trading session, MicroVision Inc. (MVIS) stock has surged by 9.19% to the price of $28.87 at the time of writing. MVIS previously gained 47.13% on the closing session at $26.44. The MVIS stock volume traded at 208.43 million shares. The average 3 months trade volume is 16.42 million shares. In the past 5 trading sessions, the stock had jumped by 151.81%. In the past 5 trading sessions, the stock had jumped by 151.81%. In the last three and six months, the MVIS stock has gained 264.69% and 1010.92% respectively. MicroVision Inc. is currently valued in the market at $3.05 billion and has 148.24 million outstanding shares.

Tell me about MicroVision Inc.

MicroVision Inc. is an electronics company that specifically focuses on the development of scanning technology. The scanning technology operations involve creating a projection of a high-resolution miniature as well as 3D sensing and image capture solutions. MicroVision utilizes these scanning technology solutions to create augmented/mixed reality for consumer electronics. The primary clients of MicroVision to whom it sells its PicoP and LiDAR technology-based systems, are original equipment and design manufacturers.

The PicoP has been branded the name for MicroVision’s scanning technology and consists of diodes, opto-mechanics, electronics, and micro-electrical mechanical systems while the 3D LiDAR (3D Light Detection and Ranging) sensing system is used for active collision avoidance system.

What is making the MVIS stock surge?

On 22nd April 2021 at 5:00 pm, MicroVision Inc. made an announcement stating that it will release the report of its 1st quarter results for the year 2021, two days from now on 29th April 2021 at the market close.  However what is interesting about the news related to MVIS stock is that it was released at 5 pm, however, the MVIS stock rallied more than 15% to $14.10 at around 9 am EDT and dropped down afterwards to $12.89 at around 11:30 am EDT. This happened before the news release and currently, the stock is riding a bull wave.

This sudden surge was associated to the mentioning of the MVIS stock in the Reddit-based forum infamously known as WallStreetBets, the forum of Redditor retail investors that surged up the GameStop stock and other undervalued stocks which were short-squeezed. The Redditors are investing into the stock and letting it climb a bull ladder in order to force the short-squeezers to buy back the stock. This buying back of the stock is causing the price of MVIS shares to shoot through the roof.

What to make of the Redditor-fueled surge in stock price?

However, if you are a seasoned investor who has been keeping an eye on the Redditor-based stock price surges like GameStop, it’s that they boost the stock exceedingly and do not match the financial metrics or near-term growth prospects. Which is why the surges are short-lived and ultimately return to pre-surge price or the stock is poised to become bearish. Day traders still ride the wave because they have impeccable timing for buying and selling the stock.

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