MicroVision Inc. has displayed weak financial health for the past few quarters despite its expansion strategy. The laser beam technology manufacturing company recently launched Movia Lidar Sensor to repair the company’s wounded operations. The project was launched with the aim of generating revenue amounting to $500,000 for the first quarter of 2023. MicroVision Inc. is set to roll out its first-quarter earnings on May 11, 2023.
The Financial Story
MicroVision Inc. has released wrecked financial reports, which can push investors to panic sell-off. The company has reported nil revenue for the past two reports and negative EPS with minute deviations. The profit margin has been stuck at 0% since the operations generated no revenue. On deeper inspection, the financials show the debt doubled in the fiscal year 2022. The company displays disintegrated cash flows and can hint towards a future crisis.
The scheduled reports have taken influence from the past reports, and the estimates are set as per the strategic investments. The reports are scheduled to roll out on May 11, 2023, for the quarter ending in March ‘23. The estimated earnings for the said period are placed at negative $0.11, and the estimated revenue is the same as the previous value of $500 thousand. The Lidar Sensor project can induce revenue generation but can’t be enough to cover previous losses.
MVIS Stock Price Analysis
Source: MVIS Stock by TradingView
MVIS stock price forms a falling wedge pattern which can observe a bullish breakout despite weak financials. The upsurge is predicted near the earnings report if the results are around the estimates. The trading volume suggests an increase in buyer interest with rising prices. The Bollinger Bands show contracting volatility. The rising prices try to take over the EMA ribbon starting with 20-EMA. The rising prices can face resistance near $2.70.
The MACD forms a positive cross and begins to record buyer participation, which can widen upon a projected bullish breakout. The RSI shoots above 50-range and indicates a rise in buyers. The indicators pose bullish attributes to map out the future rise in MVIS Stock Price. The rise can be an overwhelming reaction to the anticipated positive earnings report.
Conclusion
MVIS stock price portrays a bullish outlook despite weak financials for the past two quarters. The new Lidar Sensor project can induce bullish sentiment among the investors of MicroVision Inc. The company can reach the top manufacturers by leveraging the new project, but the damaged financial image can hamper the bullish rally. Holders can rely on the support near $2.05.
Technical levels
Support levels: $2.05 and $1.80
Resistance levels: $2.70 and $3.35
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/06/mvis-stock-price-microvision-inc-waiting-for-strike-three/