MicroVision (MVIS) Stock Rockets on No News: Here’s Why

Microvision MVIS Stock News

MicroVision, Inc. (NASDAQ: MVIS) is screaming for the top in the market this morning. However, if you’ve come in search of an announcement from the compay, you’re not going to find what you want. There have been no press releases, SEC filings, or any other forms of news from or surrounding the company.

So, why is MVIS stock seeing dramatic gains in the market this morning? Here’s why:

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Why MVIS Stock Is Climbing

As mentioned above, MicroVision stock is headed for the top with no news released. So, what’s the deal?

First and foremost, the company is expected to release its third quarter financial results on October 29, 2020. That’s this Thursday. However, investors aren’t likely to be as interested in financial results as they are with regard to the company’s strategic alternatives exploration.

Recently, MVIS announced that it will be working to take advantage of strategic alternatives that may include the sale of assets or the company as a whole. That’s where things get very interesting, especially if you look at the evidence.

First and foremost, the company’s products are too important to fail completely. In fact, they are used in government technologies. Moreover, when the company found its way to some manufacturing headaches, a large customer stepped in to help with manufacturing.

While MVIS never said who that large company was, investors began to notice that key employees were jumping ship from MicroVision to Microsoft. Moreover, the United States government issued a press release thinking Microsoft for solving supply chain issues. So, I’d bet my bottom dollar that the large customer that took over manufacturing is indeed Microsoft.

As such, there’s a strong argument that Microsoft will be the top bidder, opting to buy the company as a whole or one or more of its high-value assets.

With the company’s involvement in LIDAR, sensors, augmented reality, and so many more high-value markets that Microsoft also has its hands in, an aquisition by MSFT would be a match made in heaven. However, that’s not the only potential bidder here. With the company’s technology being on the cutting edge of several high-value subsectors of technology, there are plenty of big dogs that are likely keeping a close eye on the MVIS strategic alternatives exploration.

The Bottom Line

The bottom line here is that since the strategic exploration announcement, investors have been waiting for updates to the process. When MicroVision releases its financial results, investors will also be looking for updates with regard to its planned sale.

All in all, with the high value technologies on the table, the potential for an incredible premium here is hard to ignore. All in all, MVIS stock is one to watch closely.

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