What happened

Shares of Microvision (MVIS -4.46%) are falling today after the company announced a $140 million at-the-market equity offering yesterday. 

The tech stock was down by 13.6% as of 11:19 a.m. EDT on the news.

So what 

The company -- which makes microdisplays, lidar sensors, and laser beam technology -- said in a press release that the offering means "MicroVision may, from time to time, at its discretion offer and sell shares of its common stock having an aggregate value of up to $140 million" and that it may use the money for working capital or capital expenditures.  

A line graph on a dark blue background.

Image source: Getty Images.

"A strong balance sheet gives our potential customers and partners confidence that MicroVision is a capable and trusted long-term supplier," CEO Sumit Sharma said in the press release.   

Microvision said it has the option not to sell any of its shares, but investors clearly weren't happy with the company's latest equity offering announcement.

Now what 

While it's not unusual for investors to react to company announcements, especially when they involve the potential sale of shares, Microvision's stock may be experiencing a more significant drop than some other company's stock would after the same announcement.

That's because Microvisions' share price has jumped, and fallen, based on investor sentiment in the WallStreetBets online Reddit forum. Investors have pushed the company's share price up more than 1,000% over the past year, but those gains have also come with lots of volatility.  

Long-term investors should be cautious with Microvision, as the company's share price gains have come mainly from investors deciding collectively to be bullish on the stock and not necessarily based on Microvision's underlying business.