Microvision MVIS Stock News

Microvision, Inc. (NASDAQ: MVIS) has gotten a lot of attention as of late. Financial blues led the company to seek strategic alternatives, and many believe that the most likely alternative is a sale of all or part of the business to Microsoft Corp (NASDAQ: MSFT). Nonetheless, something big is likely about to happen. Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Why I Believe That MVIS Stock Is Going To Fly From Here

As mentioned above, Microvision has been a hot topic of discussion as of late. The back story is simple. The company is centered in technology. The most important of this technology is the company’s augmented reality tech.

In fact, the company’s technology is at the center of an important product for Microsoft known as HoloLens. The augmented reality glasses are expected the be the future of augmented reality tech and could be a massive revenue generator ahead.

However, recent struggles hit MVIS. The company simply couldn’t keep up with demand. Not to mention the financial struggles that the company started to face.

To remedy these issues, the company said that it had entered into an agreement with a large unnamed customer for the production of these key components. Importantly, while the agreement allows the customer to produce these components, MVIS continues to hold the intellectual property associated with this tech.

Considering how important this tech is to Microsoft and the scale of Microsoft, it was widely believed that this was the customer that took over production. This notion was all-but-confirmed when the United States Army thanked MSFT for stepping in with regard to the production of key augmented reality components.

Still, we have no confirmation from either company, but if it waddles like a duck and quacks like one. Well, chances are that it’s a duck, and Microsoft seems to be that duck.

That’s exciting for Microvision and its investors. After all, Microsoft is a massive company and a partner of that scale, well, that’s invaluable for a company of the scale of MVIS.

Soon after the “customer” became a production partner, we started to see something interesting. Important employees on the development side of the coin at Microvision started to jump ship and get scooped up in Microsoft’s net. Key R&D employees are now on Microsoft’s payroll.

At the same time, financial blues at Microvision led to action. The company hired advisors in an attempt to explore strategic options. Of course, the options include the sale of all or part of the company, or potential mergers.

That’s when the MSFT acquisition of MVIS rumors started to emerge. Generally, I don’t talk much about rumors. Most are invalid and backed by little evidence that a potential deal was ever on the table. This one is very different.

Every time I look at MVIS, I seem to find another big red arrow pointing to the idea that MSFT will take the company over. Microsoft needs the technology for a very important product. The company is likely manufacturing this tech already. Employees have jumped ship from the prey to the predator. Microvision was very clear about looking for these types of alternatives. But a possibly the most important clue came when MVIS issued its financial results.

In the press release surrounding the quarterly results, the company’s CEO said that it is in discussions with potential suitors. Moreover, these suitors may be more interested in pieces of the business, rather than acquiring the entire thing.

Yet another big red arrow my friends. MSFT has no use for a lot of the business at MVIS. However, without the IP the company holds relating to HoloLens, it’s a fish out of water. It’s blockbuster product is essentially owned by someone else. That IP is VERY VALUABLE to Microsoft.

The Bottom Line

The bottom line here is that deals take time. However, there’s likely conversations taking place between Microvision and Microsoft. If a deal comes to fruition, whether it be the acquisition of the company or the IP it holds, it is going to be an incredibly high value one.

So, should a deal take place, no matter how it goes, MVIS and its investors will be in a very good place. So, if you’re not watching this stock, you’re missing out!

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story

Join our free mailing list below to receive real-time news alerts!

Subscribe Today!

* indicates required


6 COMMENTS

  1. It seems that the shares are under pressure this morning and giving back all yesterday’s gains. I normally don’t follow these type of recommendations. I hope I don’t regret buying 2500 shares at $.953.

    • I don’t think you will. However, keep in mind that nothing on this website constitutes a recommendation to buy. Please read the disclaimer at the footer of each page. Nonetheless, I do personally believe that a big deal is on the horizon.

  2. The R/S vote doesn’t change the value of the company, or your stock, for that matter. The only thing it could do is look bad to outsiders or someone looking to invest, as the price per share looks higher… but the value is still the same. That shouldn’t make much difference when it comes to a buy-out.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.