'Meme' Stock MicroVision Plunges as Sales Fall and Losses Widen
MicroVision (MVIS) - Get Report shares plunged on Friday after the laser-scanning technology company that is one of the “meme” stocks being pushed around by retail investors reported a wider-than-expected quarterly loss and a steep drop in sales.
MicroVision reported a loss of $6.2 million, or 4 cents a share, in the first quarter, compared with a year-earlier loss of $4.9 million, or 4 cents a share. Sales dropped to $500,000 from $1.5 million a year ago. Analysts surveyed by FactSet expected the company to report a loss of 3 cents a share on sales of $600,000.
MicroVision is one of several companies now dubbed meme stocks that retail traders communicating on social media platforms like Reddit have grabbed hold of this year, taking their prices on a roller-coaster ride in the process.
MicroVision shares took off earlier in the week as the Reddit crowd made the maker of laser technology for auto sensors their stock du jour. MicroVision garnered the most mentions on Reddit's vaunted WallStreetBets section Monday.
Still, the companies now labelled meme stocks often have weak fundamentals. GameStop (GME) - Get Report was the first and has drawn the most attention. AMC Entertainment (AMC) - Get Report and Koss (KOSS) - Get Report are on the list too.
In December, short-seller Hindenburg Research lambasted MicroVision on Twitter.
TheStreet founder Jim Cramer gave MicroVision a shout-out earlier this week. "That's another wild trader. I think it's a good one but you need to be careful," he said on "Mad Money."
At last check, shares of MicroVision were down 13.11% at $15.64. The stock ended the regular trading day Thursday down 14%.
