Is MVIS a good buy
9/30/2024 08:37am
**MicroVision (MVIS) is not a good buy at this time.** Here's why:
1. **Financial Performance**: The company has reported a net income loss of $23.93 million and a diluted EPS of -$0.11 for the most recent quarter, indicating a significant loss in earnings. This is a concern as it shows that the company is not generating profits.
2. **Revenue Growth**: While the company has seen a substantial increase in revenue by 477.51%, this growth comes with a catch. The increased revenue is primarily due to a one-time non-recurring item, which may not be indicative of future growth.
3. **Cash Burn and Short Cash Runway**: The company has been burning through cash at a rapid rate, with a cash burn of $77 million in the last year. This cash burn is a significant concern, especially given the company's short cash runway, which puts pressure on the company to raise capital or cut expenses to avoid financial distress.
4. **Market Challenges**: The company faces challenges in the form of intense competition in the lidar market, which could impact its ability to gain market share and achieve profitability.
5. **Director Retirement**: The recent retirement of Brian Turner, a long-standing director, could potentially impact the company's leadership and strategic direction.
In conclusion, the financial losses, cash burn, and market challenges suggest that MVIS is not in a strong position to make a significant investment. Investors should carefully consider these factors and monitor the company's future performance before making an investment decision.