Please ensure Javascript is enabled for purposes of website accessibility

Why Vuzix Stock Jumped Today

By Evan Niu, CFA - Jan 25, 2021 at 12:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The smart glasses maker inks a new deal with Japan's KDDI.

What happened

Shares of Vuzix (VUZI 2.34%) jumped as much as 19% today after the company announced a new partnership with Japanese telecommunications giant KDDI to sell smart glasses. As of 1 p.m. EST, the stock was still up 10%.

So what

Vuzix said that it has partnered with various international subsidiaries of KDDI to sell Vuzix Smart Glasses to enterprise customers across several markets. Vuzix Smart Glasses leverage augmented-reality (AR) technology to free the user's hands and increase productivity of maintenance technicians. KDDI has already started to deploy the devices internally and will also resell the Smart Glasses to other customers.

A field technician wearing Vuzix smart glasses

Image source: Vuzix.

"We look forward to working with KDDI as both a reseller of our smart glasses and an internal user," Vuzix CEO Paul Travers said in a statement. "KDDI is a leading supplier of telecom services in Japan, as well as an established global supplier of IT products and services, and this partnership represents a perfect fit for the solutions and capabilities of both companies."

Now what

Early generations of AR glasses, most notably Google Glass, had largely failed to gain traction initially with consumers, but manufacturers have found new use cases in industrial and enterprise markets. Companies can justify the high cost of the products since they can potentially improve productivity for certain roles.

Sales of Vuzix Smart Glasses jumped by 156% in the third quarter to reach $2.7 million. In November, Travers commented, "The COVID-19 Pandemic has become a catalyst for much broader acceptance of enterprise smart glasses, resulting in shorter evaluation periods and increased customer adoption."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vuzix Corporation Stock Quote
Vuzix Corporation
VUZI
$5.69 (2.34%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.