Shares of MicroVision (NASDAQ: MVIS) popped this morning on seemingly no company-related news. The share price jump is likely the result of MicroVision -- which makes lidar sensors, laser beam technology, and micro-displays -- being mentioned on Reddit's WallStreetBets forum yesterday.
The tech stock gained a staggering 19.4% in trading this morning but then leveled off significantly, with a 4% gain as of 11:07 a.m. EDT.
Some individual investors on Reddit have boosted the share prices of companies that they believe the rest of the market has overlooked or undervalued. The most popular of these has been GameStop. A mere mention of a particular stock on the WallStreetBets message board can potentially send a share price skyrocketing.
That appears to be what's happening with MicroVision's stock today. One post about a user's large position in the company received a lot of attention yesterday and today, which likely fueled the tech stock's gains this morning.
MicroVision's stock has skyrocketed more than 5,000% over the past year as investors bet on the company's lidar technology and patents. A broader focus on technology stocks by individual investors during 2020 also likely contributed to the share price gains.
But today's jump should be an indicator that some of MicroVision's meteoric gains are coming from exuberant speculation about the company. All of which means that the stock could experience future volatility based on shifting investor sentiment.
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