MVIS Stock Price Fell 23.36% Over The Past 5 Trading Days: Why It Happened

By Noah Long ● January 3, 2021
  • The stock price of Microvision, Inc. (NASDAQ: MVIS) fell 23.36% over the last 5 trading days as it went from $7.02 on December 24 to $5.38 on December 31. This is why it happened.

The stock price of Microvision, Inc. (NASDAQ: MVIS) fell 23.36% over the last 5 trading days as it went from $7.02 on December 24 to $5.38 on December 31. This drop was followed by a 245.90% increase in price between December 4 and December 22. One of the triggers for the stock price drop over the last week has to do with a report by the short-seller Hindenburg Research.

Microvision is not the only company that Hindenburg Research published scathing reports about recently. Last year, Hindenburg Research also targeted Nikola and Kandi Technologies. 

Hindenburg Research referred to MicroVision as a “$1.2 billion market cap corporate husk with almost no revenue or intellectual property value is a standout.” That is why Hindenburg Research said that it is short MVIS.

And Hindenburg said that the stock price of the company increased 5,000% from its lows last year on “misguided retail euphoria over its LiDAR IP portfolio amid a broad EV bubble.”

Hindenburg also wrote that MicroVision put together financing documents and then announced the next day that it hopes to have a LiDAR demo product by April 2021. And several blogs published rumors about Microsoft being interested in acquiring the company.

In a Twitter thread, there were some people who disagreed with Hindenburg. Here is an example:

 

One of the Twitter users who responded to the thread said “Thanks for the dip! Bought more.”

MicroVision had announced on December 29 that it was also entering a $13 million At-the-Market (ATM) equity offering agreement with Craig-Hallum Capital Group. As part of the agreement, MicroVision may at its discretion offer and sell shares of its common stock having an aggregate value of up to $13 million through Craig-Hallum. 

Following the market close on December 31, the stock price increased by 1.12% to an after-hours price of $5.44.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.