MicroVision: $30 stock when acquired for $5 Billion?
Real billion dollar ideas have multi-billion/trillion dollar market size, they are scalable, and leverage the drivers of growth to go viral or global.
In my last research on MicroVision
(NASDAQ: MVIS), I introduced this 20 year old high-tech company that is at the cusp of acquisition by a major technology company. In the last few weeks, MVIS stock price has gone up by 15-fold [from 20 cents to over $3.10] on speculations. Now it is trading in the $1.40 to $1.48 range giving new investors the opportunity to take position; for the future of $15 to $30 dollar trading range in the next six months or so... depending on the acquisition price of $2 billion or $5 billion. Here's the short answer...
Each of the five LBS core technology verticals can spawn Trillion dollar markets of the future. Considering the diversity of its product line, built around the LBS core technology over the last 20 years, and protected by it's IP and 500 patents, each core vertical can spawn markets worth trillions, and be worth billions in an acquisition or a merger.. Why sell the company or merge with a deep pocket Tier 1 Technology partner...
At low volumes, the cost of components that MicroVision sells to its Tier 1 partners is 5 to 10 times higher than what it is sold for in anticipation of large quantities... and loosing money on each component sold is what has shaped the company's past blunders loosing millions of dollars each quarter for the last 15 years.
Finally, to sell the company, or to sell one or all of its 5 core vertical engines that can spawn trillion dollar markets, is the right decision. Under the leadership and stewardship of a deep pocket Tier 1 technology partner from the FAMGA gang can truly realize the potential of MicroVision technology, and bring hundred of products to the market that will be sold in billion units per year.
In the last few weeks, MVIS stock price has gone up by 15-fold [from 20 cents to over $3.10] on speculations. Now it is trading in the $1.40 to $1.52 range giving new investors the opportunity to take position; for the future of $30 to $60 dollar trading range in the next six months or so... depending on the acquisition price of $5 billion or $10 billion. What to expect from sale or merger of MicroVision...
Over the last 3 decades, the FAMGA tech giants — Facebook, Amazon, Microsoft, Google, and Apple — have collectively made 770 acquisitions
. Even amid the Covid-19 pandemic, some have continued to write checks, with Apple being the most active acquirer in 2020 to date
This FAMGA group of acquirers has deep pockets. Some of their biggest checks have been written for high-profile companies such as career platform LinkedIn
(acquired by Microsoft for $26.2B), chat app WhatsApp
(Facebook for $22B), and video-sharing platform YouTube
(Google for $1.7B).
TOP 5 ACQUISITIONS BY COMPANY
Below, we break down each of these companies’ top 5 acquisitions by value. Read more about these deals in the posts linked below.
- WhatsApp ($22B, 2014)
- Oculus VR ($2B, 2014)
- Instagram ($1B, 2012)
- CTRL-labs ($1B, 2019)
- LiveRail ($500M, 2014)
- Whole Foods ($13.7B, 2017)
- Ring ($1.2B, 2018)
- Zappos ($1.2B, 2009)
- PillPack ($1B, 2018)
- Twitch Interactive ($970M, 2014)
Microsoft (Top 10)
- LinkedIn ($26.2B, 2016)
- Skype ($8.5B, 2011)
- GitHub ($7.5B, 2018)
- Nokia’s Devices & Services Business ($7.2B, 2014)
- aQuantive ($6.3B, 2007)
- Mojang ($2.5B, 2014)
- Affirmed Networks ($1.4B, 2020)
- Visio Corporation ($1.4B, 1999)
- Navision ($1.3B, 2002)
- Yammer ($1.2B, 2012)
Google (Top 6)
- Motorola Mobility ($12.5B, 2012)
- Nest Labs ($3.2B, 2014)
- DoubleClick ($3.1B, 2007)
- Looker ($2.6B, 2019)
- Fitbit ($2.1B, 2019)
- YouTube ($1.7B, 2006)
Apple (Top 7)
- Beats Electronics ($3B, 2014)
- Intel — Smartphone Modem Business ($1B, 2019)
- Dialog Semiconductor ($600M, 2018)
- Anobit Technologies ($500M, 2011)
- Texture ($485M, 2018)
- Shazam ($400M, 2017)
- NeXT Computer ($400M, 1996)
As an investor you know change equals opportunity… the bigger the change, the bigger the opportunity. The next few years are going to be either the most interesting, exciting, and lucrative years for you or you’re going to be left behind.
Change can mean big profits for investors getting in on the biggest changes early.
These two sectors -- artificial intelligence and TaaS -- are all seeing massive changes and we’re just starting to see their impact in the world.
Historically, when you just start to see these changes is the best time to buy.
And it’s why in a few years you’ll be kicking yourself for not jumping on them when you had the chance.
Some of the best, most direct, and highest-potential ways to jump on them are with Microsoft (MSFT), MicroVision (MVIS) and Tesla (TSLA)