Why Microvision Shares Fell 18% Last Month
Shares of Microvision (NASDAQ: MVIS) fell 17.8% in July, according to data from S&P Global Market Intelligence. A drop or a jump of that magnitude often points to game-changing news, but it was really just business as usual for this ultra-volatile stock.
The maker of micro-display systems for augmented reality and lidar laser-scanning tools for autonomous vehicles had one minor news item to share last month. The company hired a seasoned automotive technology executive to head up its operations in Europe and the Middle East, opening up a new German office in the process. The stock fell 4% that day, while the market in general and lidar-sector peers in particular held relatively firm.
However, so-called meme stocks were crashing hard and taking Microvision along for the ride. This stock has become a favorite ticker of the Reddit group WallStreetBets, much like video game retailer GameStop and movie theater operator AMC Entertainment Holdings. That association has amplified Microvision's volatility. These tickers are prone to wild swings, often without any particular news item or data point serving as the trigger. That was Microvision's July in a nutshell, as the stock generally rose and fell in tandem with other meme stocks.
Source Fool.com
