MicroVision soars 47%, leading 'meme stocks' higher


(Reuters) - Shares in laser developer MicroVision Inc rose 47% on Monday and other Reddit favorites rose, suggesting interest in so-called meme stocks remains strong after a wild ride this year.

MicroVision, which develops laser scanning technology for automotive lidar sensors and augmented reality, was the most mentioned stock on Reddit's popular WallStreetBets forum on Monday, according to SwaggyStocks, the mood tracker.

Other so-called meme stocks, centered on WallStreetBets and other online forums populated by retailers, were also higher on Monday, including GameStop, AMC Entertainment and Koss Corp.

"I think it's retail coming back earlier this week," said Rick Meckler, partner at Cherry Lane Investments, a family investment firm in New Vernon, New Jersey. "Meme stocks tend to be more emotional and very dynamic for investors."

Meme stocks were in the spotlight earlier this year when a spate of purchases of shares in video game retailer GameStop forced bearish investors to unwind their bets on the stock, causing a rally of nearly 1700% in January and other Reddit favorites triggered an increase.

Trading in the names has been very volatile over the past few months, although GameStop shares are still up nearly 800% year over year.

“This market has been very speculative on the edges for months. Retail interest in speculative, high beta names appears to remain strong, ”said Meckler.

MicroVision stock closed at $ 26.44 on Monday after rising to $ 27.80 during the high volume trading session. The stock is up 391% since the start of the year.

In the past, investors have been particularly sensitive to news about the company's long range lidar sensor technology, and the company expected to be able to complete samples of the technology within the April period.

According to S3 Partners, short interest in MicroVision was around 18.7% of the float, with 29.37 million shares of the company sold short at the close of trading on Friday.

The number of short stocks rose 1.4 million in the past seven days, showing that some investors were placing bearish bets as stocks rose, S3's Ihor Dusaniwsky said.

"We're seeing a short sell in a glowing stock as shorts are looking to pull back," Dusanivsky said.

But bearish investors "could be ousted from their positions at losses" if stocks continue to rebound, he said.

In Monday's trading alone, short sellers lost $ 227 million in market value on the day the stock traded at $ 25.69, Dusaniwsky said.

Short seller Hindenburg Research said in a December 22nd Twitter post that it was betting against the company's shares. It didn't respond to a request for comment on Monday.

MicroVision's options were the sixth most active among individual stock names on Monday. According to Trade Alert, trading in call options that bet on the stock rose another 30% by mid-May.

The company is expected to release results on April 29th. A representative from MicroVision said Monday that the company is not commenting on course changes.

Reporting by Sinéad Carew and Saqib Iqbal Ahmed; Arrangement by Ira Iosebashvili and Richard Pullin


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https://thedailytradingnews.com/2021/04/27/microvision-soars-47-leading-meme-stocks-higher/

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