Please ensure Javascript is enabled for purposes of website accessibility

Why MicroVision Stock Is Falling Today

By Chris Neiger - Apr 29, 2021 at 1:16PM

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

Investors may be selling their shares before the company releases its first-quarter earnings report.

What happened

Shares of MicroVision (MVIS 11.14%) were cratering today ahead of the company's first-quarter results, which will be released at the end of the trading day. 

The tech stock fell by as much as 16.5% today and was down by 10.4% as of 1:55 p.m. EDT.

So what 

MicroVision has emerged as a so-called meme stock as investors on Reddit's WallStreetBets message board have recently focused their attention on the small tech company. 

Arrows pointing down on a red background.

Image source: Getty Images.

Some investors have bought up shares of MicroVision because a large percentage -- about 20% -- of the company's shares are held short. These meme stock investors are betting that as the share price of MicroVision climbs, investors who are shorting the company will then sell their shares, causing the company's stock to spike even further. 

But today's massive share-price slide shows just how quickly meme stock prices can change. Just yesterday, MicroVisions's stock skyrocketed 15%, and the day before that it was falling 19%

Now what

Investors can likely expect more volatility from MicroVision's stock tomorrow, once the company reports its first-quarter results later today. The company's share price has jumped 247% since the beginning of this year and is up more than 7,000% over the past 12 months. The company's stock will likely respond strongly to any positive or negative news. If it does, at least MicroVision's stock will be moving based on company-related news instead of just on the whims of investors.

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

MicroVision, Inc. Stock Quote
MicroVision, Inc.
$4.39 (11.14%) $0.44

*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 analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

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.