MicroVision (MVIS) Stock: Buy the Dip, Thank Me Later

Microvision MVIS Stock News

MicroVision, Inc. (NASDAQ: MVIS) is tumbling in the market this morning, trading on declines of more than 18% early on. The declines come after the company reported its financial results, missing the mark in the eyes of investors. Nonetheless, the declines represent a compelling opportunity. Here’s what’s going on:

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MVIS Reported Financial Results

In the earnings announcement, MicroVision reported a loss of $0.02 per share, which was right in line with analyst expectations. However, revenue is where the investors felt the pain.

During the quarter, MVIS generated revenue of $640,000, about half of the revenue of $1.19 million reported in the same quarter of last year.

While revenue missed the mark, the declines in MVIS stock seem to be creating an opportunity. Here’s why:

Mvis Is Likely to Be Acquired

While MicroVision’s financial results were a bit disappointing, the declines are offering up an opportunity to get in at a discount prior to a potential acquisition. Recently, MVIS announced that it is exploring strategic alternatives, including the potential sale of assets or sale of the entire company.

Considering the need for the company’s components in the development of various AR systems, as well as its activity in autonomous vehicles and other areas of emerging technology, it is too important to fail. That’s why a big customer, likely Microsoft, picked up manufacturing of some components, keeping the supply chain alive.

Considering this, regardless of the financial struggles MVIS is facing, the company’s intellectual property is overwhelmingly valuable. With the company actively looking to sell this property to the highest bidder, the opportunity here is hard to ignore. Buying on this discount may very well get you a ticket to exposure to a potential acquisition with a massive premium.

So, sure, it’s upsetting that the comapny’s financial results weren’t more positive, but MVIS stock is hard to ignore overall.

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