Energous Corp (NASDAQ: WATT) is screaming for the top in the market this morning, but if you’re looking for SEC filings or press releases that may act as the catalyst, you’ll be hard-pressed to find anything. Nonetheless, there’s a good reason for the gains.
At the moment, rumors are surfacing that Energous is working with Apple. Here’s what’s going on:
Skip to What You Want to Read
- Energous May Be Working With Apple
- What Analysts Think About WATT Stock
- Risks to Consider Before Buying WATT Stock
- Final Thoughts
Energous May Be Working With Apple
As mentioned above, while Energous hasn’t issued any news this morning, it didn’t have to. Rumors are surfacing that the company is working with Apple.
Earlier in the year, the discussion surrounding wireless charging of the iPhone heated up. Sure, there is already a wireless charging solution, but rumors started to surface, suggesting that Apple was working on a novel approach to wireless charging for its iPhone.
Today, those rumors are expanding. Now, it seems as though investors believe that Apple is working with WATT based on what many believe to be a previously overlooked SEC filing.
In the filing, WATT did say that its WattUp product will undergo compliance testing with Apple. However, there was nothing announced about a partnership.
Now, many investors are wondering why the WattUp product would undergo Apple compliance testing if it wasn’t to be used with an Apple product.
So, there’s some evidence that Apple and Energous may be working together to develop wireless charging technology for the iPhone.
Now, it’s important to remember that rumors break in the market all the time. The vast majority of these rumors are disproven pretty quickly. Neither AAPL or WATT have been particularly forthcoming about any relationship they are in, and there has been no conversation that there is any relationship here. So, if you’re going to jump in on this run, be careful.
What Analysts Think About WATT Stock
While there isn’t much by way of analyst coverage of WATT stock, what it lacks in quantity of coverage, it makes up for in quality. At the moment, there’s only one analyst covering the stock. However, that analyst has an overwhelmingly positive opinion.
Not only does the analyst rate Energous stock a Buy, the price target on the stock has been set to $7 per share. That target represents the potential for more than 80% gains compared to yesterday’s closing price.
Risks to Consider Before Buying WATT Stock
Before diving into WATT stock, there are some risks that need to be considered. After all, there’s no such thing as an investment that doesn’t come with the risk of loss. Some of the most significant risks to consider include:
- Penny Stock. WATT is a penny stock. Like most penny stocks, the stock is subject to extreme levels of volatility, which can be fun on the upside, but painful on the downside. Moreover, high levels of volatility make buying and selling decisions difficult.
- Profitability. Energous isn’t necessarily a profitable company. That means that the company must survive on the money it has in the bank, and if it’s unable to do so, it will likely look to public markets to raise funds, leading to dilution of existing shareholder capital, and declines.
- Speculation. It’s never a good idea to bet on rumors. At the end of the day, the vast majority of rumors prove to be invalid. Considering the rumors and the fact that the company is an unprofitable penny stock, this is a very speculative bet.
While there are risks to consider when it comes to an investment in WATT stock, there are risks to consider before buying any stock. Ultimately, if Energous is working with Apple, there’s huge potential for growth, and with the SEC filing suggesting that there’s compliance testing going on, that could be what’s on the horizon.
Just make sure to consider the risks before diving in. While there may be more upward movement left in this thing, there’s also the potential for loss.