Why is MicroVision's (MVIS) stock up more than 30% today?

MVIS a lidar technology firm, saw its stock soar on Tuesday, up more than 30% as of 12:35 p.m. ET.
WAN CHAI, Hong Kong - June 1, 2022 - PRLog -- They are a small-cap stock that generates nearly little income and losses, yet it has become a meme stock pushed on the Reddit discussion board wallstreetbets owing to its very significant short interest. Any minor announcement may produce a large amount of purchasing power in meme stocks and MVIS received some favourable news today, albeit its final significance is difficult to predict.

The United States Patent and Trademark Office granted MVIS a patent for "Alteration of resonant mode frequency response in mechanically resonant device" on Tuesday morning. This application was initially filed back in February of 2019 and was granted today, according to the patent documents. The stock increase was presumably fuelled by news of the patent grant, which was publicized on wallstreetbets.

It's unclear what this patent means but with the stock up so high, the wallstreetbets audience appears to welcome the news. Of course, short covering is going to be a big part of that move, as it is with most meme stocks. Short-sellers held over 23% of MVIS's stock as of March 15, which is a very significant percentage. With such a large level of short interest, any positive news might entice the Reddit crowd to purchase, forcing short-sellers to cover. That appears to be the case right now.

MVIS, like many meme stocks is a high-risk investment with questionable fundamentals, which attracts short-sellers. However, if any breaking news fuels purchasing from Reddit message boards, these stocks are prone to large fluctuations.

Nonetheless, it's unclear what this patent implies for MVIS in the long run. Many technological businesses, including extremely large companies with a lot of resources, are inventing in the lidar industry in order to gain an advantage in the autonomous-vehicle arena. According to our personal review of the wallstreetbets discussion boards, most of today's customers are unaware of how important this patent is to the company's long-term competitive advantage.

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