Enovix (ENVX) Gets Charged up on Mixed Reality News
Shares of Enovix (ENVX) are up over 20% this morning on news the company has inked a deal to deliver sample and production batteries for a California-based company. The batteries and packs will go in a mixed-reality device. There is speculation this could be Meta (META) or Apple (AAPL), with Meta the lead contender (of those two). That’s super exciting, but it could also be some much smaller player. Still, let’s speculate for a minute. Meta sold over 600,000 units in Q1 so this could be a meaningful contract. We’ll just have to wait and see. Either way, Enovix is getting an upfront payment for tooling, then payments for deliveries (amount not disclosed).
We have been in ENVX stock for a while, and the potential for this type of deal has helped us through some of the dark days. I’m in for the long haul since, should things continue to go well, there will be many more of these types of deals over the coming quarters. The potential gains here are really significant. That said, I still expect ENVX will be a volatile stock, especially if/when news like this hits and speculators begin to drive it. I still think it’s OK to add to existing positions (averaging in), so ENVX remains a buy. BUY
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