[ad_1]
What happened
Actions of WiMi Hologram Cloud (NASDAQ: WIMI) exploded on Wednesday morning after the company announced newly patented laser technology with applications in driverless cars, electric vehicles, medical imaging, and more. The company’s shares have languished in recent months – recently down more than 75% from 52-week highs. However, WiMi action is a game-changer today, up 20% as of 10:45 a.m. EST.
So what
According to the press release, WiMi has been engaged in the research and development of 3D holographic pulse laser technology. With autonomous driving, vehicles use sensors to measure things, like the distance between your car and those around it. It appears that the WiMi device can take this information and present a holographic projection of that information to those in the vehicle.
Image source: Getty Images.
WiMi is an international action in China. According to the company, the Chinese government has granted it a patent for the technology. WiMi believes this positions her strategically for success in the future. Specifically, the rise of electric vehicles could create a greater need for sensors in the future, and WiMi’s patented technology could be used to display information.
The press release does not mention any monetization strategy for the new WiMi device. Therefore, the stock goes up a lot today on speculation. If the intellectual property is good, WiMi will still have to market it to customers.
WIMI data by YCharts
Now what
If I were a bettor, I would bet WiMi Hologram Cloud will announce a stock offering in the next few days to take advantage of its soaring stock price. This is because the company has a proven track record in this area. On July 10, WiMi released a report on the rapidly growing hologram market namedropping You’re hereElon Musk and Ali BabaJack Ma is in the process. The stock more than double in one day on this report.
WiMi took advantage of the rise in its stock price days later by announcing a stock offer to sell more than 7.5 million shares, raising more than $ 61.8 million. The business needed the money – revenue in the first half of 2020 was only up 7.8% to $ 24 million, but the cost of revenue soared 134%, for net profit of just $ 3.2 million.
Don’t be fooled by the name of the company – WiMi Hologram Cloud primarily generates revenue from advertising campaigns and through its payment processing middleware software. Given this reality, I would be very careful in placing too much faith in the company’s ability to monetize 3D laser technology in electric vehicles until it presents a clear strategy and advertises customers as well.
[ad_2]
Source link
