Shares of MicroVision (MVIS 2.87%) were tumbling this morning on no company-specific news. Investors in the company -- which makes micro displays, lidar sensors, and laser beam technology -- may be exiting the stock after the share price skyrocketed yesterday.
The tech stock had fallen by 19.5% as of 10:31 a.m. EDT on Tuesday.
It's highly unusual for a company's share price to fall so sharply without any major company-related news. But MicroVision's recent price swings have likely been fueled by investors on Reddit's WallStreetBets message board.
The share prices of these so-called meme stocks are highly volatile, and today's massive drop comes after MicroVision's shares skyrocketed 47% during yesterday's trading alone.
About 19% of MicroVisions's shares are held short, and investors on the WallStreetBets message board have been buying up the stock, hoping to propel the share price higher as short-sellers quickly exit the stock to avoid big losses.
Even with today's huge drop, MicroVision's stock has still gained a staggering 320% year to date.
Investors can likely expect more volatility from MicroVision's stock in the coming days. The company will report its first-quarter results on Thursday, and any positive or negative news about the quarter could send the stock reeling. As of right now, it appears that MicroVision's share price is rising and falling based on message board posts, instead of based on how well the company is performing with its core businesses.