Avoid This Pump Stock: MicroVision

Last week, MicroVision (NASDAQ:MVIS) joined the chorus of stocks to buy on Reddit’s WallStreetBets group. So, when the firm posted revenue of just $500,000, the ~ 20% drop post-earnings will leave bag holders.

MicroVision’s CEO, Sumit Sharma, added to a positive outlook by sharing updates to its lidar schedule. The CEO said, "We are prepared and plan to share key performance data with potential customers, partners, or parties interested in a strategic transaction. We expect that a version of this first-generation long-range lidar sensor, after internal and external validation, reliability, and compliance testing, could be available for sale, in initial quantities, in the third or fourth quarter."

Investors seeking exposure to the autonomous driving and car technology space should look elsewhere. For example, NXP Semiconductor (NASDAQ: NXPI) and Intel (NASDAQ:INTC), through its Mobileye acquisition, are safer holdings.

MVIS continues to fail to prove itself. Speculators are only setting an over $3 billion market capitalization on hope alone. The firm will continue to bleed money. It will sell shares or issue debt to raise capital at the expense of shareholders.

Himax Technologies (NASDAQ:HIMX) is another good alternative. The company pivoted its business to sensors and other chips. It failed along the way over the years but managed, this time, to grow earnings. MVIS stock is nowhere near that turnaround.