10 Worst Augmented Reality (AR) Stocks According to Short Sellers

2. Microvision, Inc. (NASDAQ:MVIS)

Number of Hedge Fund Holders: 7

Short Interest: 25.8%

Microvision, Inc. (NASDAQ:MVIS) is another information technology company on our list, based in Redmond, Washington. It offers AR microdisplay engines, interactive display modules, and consumer lidar components for autonomous driving applications.

This stock is considered a risky investment that many investors are avoiding because it isn’t yet producing significant amounts of operating revenue. Over the course of 2023, Microvision, Inc. (NASDAQ:MVIS) increased its cash burn by 63%, which is a significant figure that highlights the fact that the company is losing out on its free cash flow. This has been raising concerns about the company’s ability to sustain its operations without additional funding.

Another worrying factor for many investors is the fact that over the past five years, Microvision, Inc. (NASDAQ:MVIS) has seen a revenue decline of 11.4% yearly. The stock is also down by 65.9% year-to-date, which is only adding insult to injury. Microvision, Inc. (NASDAQ:MVIS) has also been facing challenges in securing contracts with automotive sector players, with its competitors, such as Cepton, gaining the upper hand. All of these factors have resulted in the stock being shorted by many investors.

Seven hedge funds held stakes in Microvision, Inc. (NASDAQ:MVIS) in the second quarter, with a total stake value of $1.7 million.