MicroVision, Inc. (NASDAQ: MVIS) is headed up in the market this morning, but the company hasn’t issued any press releases or SEC filings, leaving many scratching their heads, wondering why.
While there is no news, there seems to be a rebirth of rumors surrounding the potential acquisition of MVIS by Apple. Here’s what’s going on:
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- Rumors Suggest AAPL Will Acquire MVIS
- Wall Street Bets Pushes for a Short Squeeze
- What Analysts Think About MVIS Stock
- Risks to Consider Before Buying MVIS Stock
- Final Thoughts
Rumors Suggest AAPL Will Acquire MVIS
As mentioned above, there’s quite a bit of buzz swirling around MicroVision at the moment. While there are no press releases or SEC filings, there doesn’t have to be. Retail investors seem to be pointing to the potential acquisition of the company by Apple.
Even Wall Street Bets is getting on the trend, with a recent post published surrounding the fact that Tim Cook, CEO at Apple, recently said he is not afraid of acquisitions at any price.
This was a big statement, and many suggest that Cook is looking closely at MVIS.
Keep in mind, MicroVision is a key player in lidar, the technology that makes autonomous vehicles possible. The company is also a key player in both virtual reality and augmented reality. Apple has been in the virtual and augmented reality space for some time.
However, what’s interesting here is that investors are awaiting news on an Apple car. The car is expected to be electric, and may be autonomous. Considering the recent blues Apple has faced with leadership of the Apple Car division leaving the company, it makes sense that the company would look to MVIS as a potential acquisition of not only technology, but talent.
All told, this is a rumor. It has not been validated by members on either side of the coin, but if there’s a big tech company that stands to gain big from an acquisition of MVIS, it’s either Apple or Microsoft.
Wall Street Bets Pushes for a Short Squeeze
We all know what can happen when Wall Street Bets Redditors get behind a ticker. We saw it with GameStop, Express, BlackBerry, and several others.
So, it’s no surprise that investors are excited about the potential of the Reddit group to get behind MVIS.
Ultimately, with a post on the Reddit page pointing to the fact that Tim Cook is not afraid of moving forward with large acquisitions and suggesting that MVIS will soon be one of those acquisitions, there may be another big short squeeze on the horizon.
Risks to Consider Before Buying MVIS Stock
If you’re thinking about jumping into MicroVision stock, you’ll have to be willing to accept risk. After all, there’s no such thing as a risk-free investment. When it comes to MicroVision, the most significant risks to consider include:
- Penny Stock Risk. MVIS is a penny stock. Penny stocks are subject to high levels of volatility, making entrance and exit decisions more difficult. Also, penny stocks are known to represent relatively young companies that don’t quite yet have a proven business model that has led them to profitability.
- Capital Risk. MicroVision currently operates at a loss. If the cash on the company’s balance sheet isn’t enough to get it through to profitability, the company may look to public markets as a way to access funding, leading to dilution of existing shareholder value and declines.
- Speculation. An investment in MVIS is a highly speculative one. It hinges on the idea that either the company will be acquired by a big player like Apple or Microsoft, or the company’s innovative technologies will gain steam in autonomous driving, AI, VR, and AR products, and that these products will be met with high levels of consumer demand.
Although an investment in MicroVision stock comes with risk, all investments do. However, there may be a big opportunity here.
Both Apple and Microsoft have very good reasons to acquire MVIS. Moreover, I believe that the company’s innovative technologies have the clout to stand on their own, and attract interest from major tech manufacturers for use in their products, as we’ve seen from Microsoft. All in all, this is a speculative play, but it’s one that’s hard to ignore.