Currently, MicroVision is a technology company that is a leader in the development of laser scanning technology. This technology can be used for 3D sensing, image capture, and projection. In other words, the company develops, manufactures, and sells LiDAR, or light detection and ranging equipment.
Hold rating
Obtaining a hold rating for Microvision stock is no easy feat. The company’s ticker symbol is MVIS and its financials are not to be trifled with. Its most notable asset is its low debt-to-equity ratio of 0.28. The company is also a savvy steward of its shareholders’ money, as the last time Microvision changed its dividend was over 15 years ago. Its biggest weakness is its tepid customer service. A recent analyst’s study found that only a minority of customers have had a positive experience.
The most important lesson here is that a company’s stock price isn’t the only measure of success. It’s the performance of its executive suite that counts. Andres Sheppard, a bottom quartile analyst at Cantor Fitzgerald, was a bit less enthused. But that doesn’t mean he can’t be swayed. The firm’s CEO is on a mission to boost revenues and cut costs. In the long run, a stock’s price will only benefit from the company’s strategic initiatives.
Historical run
During the first half of this year, MicroVision (MVIS) stock had a blazing run. It gained 11,300% during a 12-month period. The stock was also featured in several news headlines.
MicroVision is the leading remote sensing LiDAR technology developer. The company is on track to deliver long-range lidar sensors in the third quarter of 2021, which is a positive sign for investors. It also has a hefty cash balance of $125 million going into the fourth quarter.
In the meantime, the company has been looking to form major supply deals in the automotive industry. It has secured a crucial patent from the U.S. Patent and Trademark Office. It has also been invited to set industry standards.
The company is also on track to secure a major supply deal with Magna International. This might be a sign of things to come.
MVIS also had a notable milestone with its patent. The aforementioned patent covered a mechanically resonant device.
Potential as a leader in LiDAR technology
During the Autosens conference, seven LiDAR companies highlighted the potential of LiDAR technology for automotive applications. The LiDAR technology market is expected to expand to over $28 billion by 2032, according to Yole Developpement. Compared to radar sensors, LiDAR systems are larger and consume more power, which must be balanced with conventional sensors for computing resources, thermal management, and range.
While the potential for LiDAR is immense, its evolution is still far from complete. A key performance parameter is point density, which governs the perception capabilities and classification of vehicles, traffic infrastructure, pedestrians, and road debris. This is a crucial parameter in the development of fully autonomous vehicles.
Several LiDAR companies are focusing on limited autonomy for consumer autonomous vehicles. These are targeted at lower volume cars that don’t need a human driver to operate them. These applications provide safety and comfort to the car and its passengers. However, these applications aren’t always reliable in the dark.
These applications are also being leveraged for environmental monitoring, manufacturing automation, and geographical survey. The growth of this application segment is driven by demand from China and other Asian nations.
Speculative play
Speculative plays are a great way to get into the market, especially when you find a stock that has a strong base of support. This is the case with MicroVision (NASDAQ: MVIS), a manufacturer of LiDAR sensor systems. Over the last year, MVIS stock has surged over 58%. During that time, the stock price hit an all-time high, but investors still have questions about the company’s future.
Fortunately, this is an opportunity to get into the stock at a reasonable price. It is still possible to get shares for as little as $5 a share. Although the short-term volatility is high, it should not negatively impact the stock’s value.
There is a lot of potential for growth with this company. They have more than 450 patents, and their technology is impressive. They have a competitive advantage in the AR/VR space, and they’re in a position to take advantage of smart device integrations. They also have the potential to scale in the automotive lidar market.
