Why Vuzix Stock Blasted Higher Today

view original post



Why Vuzix Stock Blasted Higher Today


© Provided by The Motley Fool
Why Vuzix Stock Blasted Higher Today

What happened

Vuzix (NASDAQ: VUZI) had quite the memorable day on the stock exchange at the start of the trading week. On Monday, shares of the maker of smart glasses and augmented-reality (AR) products surged more than 11% higher. That was on news of a new deal with an important reseller. 

Loading...

Load Error

So what

Before market open, Vuzix said that its smart glasses have started to be deployed by value-added reseller Ox to an entity described as “one of the world’s largest logistics platform providers.” The company did not identify this entity.

Vuzix did not provide any financial details of the arrangement. But it did quote its management waxing very enthusiastic about the deal. CEO Paul Travers said, “Ox is pursuing multiple customer opportunities using our smart glasses at this point, and we look forward to their continued success with this customer and other blue chip firms.”

Now what

Regardless of the size, scope, or dollar amount of the deal, it’s definitely a win for Vuzix. As a company dependent upon success with its next-generation products, it’s vital to get those goods out into the market where they can be used in the real world, and where their reputation can spread.

Yet a word of caution is warranted here: Like many young(ish) tech companies, Vuzix has a lengthening history of posting bottom-line losses. For example, in its most recently reported quarter, it posted a more than $9 million net loss on revenue of barely over $3.4 million. Sooner rather than later, investors will expect those negative bottom-line numbers to flip positive, and the company will have to deliver.

SPONSORED:

10 stocks we like better than Vuzix

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Vuzix wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of January 9, 2023

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 

Continue Reading