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Why Vuzix Stock Spiked Today

By Chris Neiger - Dec 30, 2020 at 2:50PM

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Investors appear happy about the company's latest smart glasses order.

What happened

Shares of Vuzix ( VUZI 1.66% ) jumped during trading today after the company announced yesterday that it had received follow-on orders for its smart glasses.

The tech stock skyrocketed by as much as 16.8% today, and shares were up by 13.2% as of 2:28 p.m. EST.

So what

Vuzix said in a press release yesterday that the company had received "multiple follow-on purchase orders this month" for the company's M400 Smart Glasses from a leading European smart glasses software developer.

A blue arrow on top of a bar chart.

Image source: Getty Images.

Vuzix said that the new orders will generate approximately $300,000 in revenue for the company in the current quarter.

The CEO of Vuzix, Paul Travers, said in the press release that the M400 Smart Glasses follow-on order "is another example of customers that are moving very quickly from pilot to first levels of deployment to better support business operations and employees" and that the glasses are being used to solve business problems for its customers.

Investors were apparently enthusiastic about the orders and pushed the company's share price higher today.

Now what

Investors are likely excited about today's announcement because the M400 Smart Glasses are the same devices that are being used to train workers who are handling some of the storage containers that are transporting COVID-19 vaccines.

Vuzix said earlier this month that the M400 devices are used by Envirotainer, a cold chain storage company, to remotely train some of its workers who handle the containers with COVID-19 vaccines. Vuzix's stock jumped about 14% on that news. With today's gains, Vuzix's shares have gained 364% year to date.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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VUZI
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