VUZIX- AR smart glasses/wearable to displace the smartphone?AR smart glasses hype fizzled out after the colossal failure of Google Glasses years ago.
However, according to BTIG, wearable technology's potential TAM could be $100B after accounting for the recent advancement in mobile technology, edge computing and 5G networks. Furthermore, the adoption rate is accelerating because of the rising trend and demand for virtual healthcare, remote training and service calls for overstretched field technicians as a result of on-going pandemic. Based on these factors, BTIG assigns VUZIX a buy rating and $30 price target.
Back in December, VUZIX revealed that Plug Power had been using VUZIX's smart glasses for its remote onboarding and training program and so did Euvirotainer.
Yesterday, Vuzix announced that the company's Vuzix M400 Smart Glasses were featured in the American Medical Association's Special COVID-19 Edition and ARK invest scooped up 292K shares for its ARK Autonomous Technology & Robotics ETF.
Undoubtedly, the momentum and short/long-term catalysts are on VUZIX's side, but the profitability and value leave much to be desired. VUZIX's growth depends on how well it can position itself to grab a slice of the pie in the massive wearable device market.
There might be a temporary pullback to the bottom of channel as the price seems slightly overextended judging from bearish divergences and trend indicators. However, volume seems healthy and I place more emphasis on volume analysis vs technical indicators. Either way, I treat it as an asymmetrical bet with the massive upside potential hinged upon the convergence of multiple technological breakthrough and enterprise adoption. I would open up a small position and put in 1/2 market buy and put in the rest at the bottom of the channel with the stoploss placed directly below the channel. This swing/intermediate setup can turn into the long-term holding if fundamental plays out in the long run.
Do your own due diligence. Not the investment advice.
