Looking For The Top Autonomous Vehicle Stocks In December? 3 Names To Know
It has been a prime year for autonomous vehicle stocks. The automotive industry as a whole has been in an interesting spot, to say the least. As conventional sectors of transport suffered this year, those on the cutting edge have prospered. Namely, electric vehicles and autonomous vehicles (AVs) have taken the limelight in the stock market. Regarding AVs, the coronavirus pandemic has created a need for the technology. With the fear of contracting the coronavirus, the ride-hailing industry was turned on its head overnight. As a result, there have been more companies turning towards the AV industry to help revolutionize the industry.
Ride-hailing companies such as Uber (UBER Stock Report) and Lyft (LYFT Stock Report) have recently been working on developing self-driving cars. The two saw their overall ride bookings dive in March but have made proper recoveries since then via their other streams of revenue. However, it appears that these companies were given a rude awakening by the sudden predicament they were in this year. This is good news for both the companies and their investors as they are pressing forward with their investments into some of the top autonomous vehicle stocks to buy in the stock market today. In fact, just yesterday, Lyft announced plans to launch its fully driverless robo-taxi services by 2023.
These developments are exciting but it also shows that the industry has a long way to go. By and large, could autonomous vehicles be the transportation of the future? If that is the case, investors may want to get themselves familiarized with these top autonomous vehicle stocks making moves now.
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Top Autonomous Vehicle Stocks To Watch Right Now: Amazon
First on this list is Amazon (AMZN Stock Report). You must be thinking, “is Amazon in the business of AVs too?” And the answer to that is yes. This is thanks to its acquisition of AV company Zoox earlier this year in June. In a two-for-one package, Zoox is focusing on the development of robo-taxis that runs on renewable energy. Considering AMZN stocks are currently sitting above the price tag of $3200 a share, how could Zoox be contributing to it?
Earlier this week, Zoox unveiled a fully functional, electric AV in the form of a robo-taxi. Some are calling it a direct challenge to Google’s (GOOGL Stock Report) AV division Waymo. Both would serve as their parent companies’ means of penetrating the automated ride-hailing market. Notably, Zoox’s is currently the only AV to offer bidirectional driving capabilities and four-wheel steering. This would make for excellent navigational capabilities in dense urban regions where it would operate. CEO Aicha Evans said, “Revealing our functioning and driving vehicle is an exciting milestone in our company’s history and marks an important step on our journey towards deploying an autonomous ride-hailing service,” Although ambitious, it seems to be shaping up to be another means of Amazon market expansion strategy. This bodes well for both investors and the company.
Financially, the company appears to be keeping its pace. Amazon reported a 37% increase in its revenue year-over-year according to its recent quarter fiscal. It also saw a 192% jump in earnings per share over the same period. With its ongoing AV endeavors, Amazon appears to be ahead of its competitors for now. Do you think AMZN stock will see the fruits of its labor on this project in the long-term?
Top Autonomous Vehicle Stocks To Watch Right Now: Velodyne Lidar Inc
Following that, we have the Silicon Valley-based Velodyne (VLDR Stock Report). It is a company that focuses on light detection and ranging (LiDAR) technology for self-driving cars. The company’s shares have risen by about 33% in December alone, closing Thursday’s session at $20.65 a share. Nevertheless, investors’ interest in this stock remains high.
On December 16, Velodyne announced a sales agreement for its sensors with AV tech pioneer May Mobility. May Mobility CEO Edwin Olson said, “Velodyne Lidar is a valued partner and we’ve chosen their long-range, surround-view LiDAR sensors because they integrate well with our AV systems. This will allow us to continue to improve the overall operation and safety of our shuttles and expand the capabilities of our vehicles into a wider range of operational design domains.” As May Mobility seems to vouch for Velodyne’s AV tech, others could be inclined to do the same. Regardless, this is a great deal for the company.
Looking at its financials, the company’s third-quarter fiscal released in November paints a good picture as well. In it, Velodyne saw a 137% jump in total revenue year-over-year. On top of that, it ended the quarter with $298 million in cash on hand. With solid financials and impressive tech offerings, the company seems to be firing on all cylinders. Could this mark the beginning of VLDR stock’s rise in 2021?
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Top Autonomous Vehicle Stocks To Watch Right Now: Luminar Technologies Inc
To top it all off, we have Luminar (LAZR Stock Report). Similar to our previous entry, Luminar also develops LiDAR sensors. Considered by some to be a global leader in LiDAR tech, the company shares have had an intense time on the stock market this week. LAZR stocks dipped by 24% over the first two trading days this week. This was due to rumors of its deal with Intel (INTC Stock Report) subsidiary Mobileye falling through. Said rumors suggested that Mobileye would be developing its own LiDAR-sensors. Since then, LAZR stocks have seen some recovery, rising by 8% on Wednesday and another 3% today as of 10:33 a.m. ET. Could there be a new wind coming for the company?
Well, that would be a yes and no at the same time. Yesterday, Luminar clarified the details of its agreement with Mobileye. Investors were excited to hear that the deal would be carried out as planned. Mobileye CEO Prof. Amnon Shashua explained, “Mobileye has independently been working on silicon photonics-based lidar that could be part of our future solutions. This has been public for some time and does not change our plans to use Luminar.” The agreement will definitely play out in Luminar’s favor as it has essentially secured a buyer in Mobileye. Whatever the case, investors should also be aware of how rumors and speculation can affect a stock’s performance.
In light of this, would Luminar’s industry-leading status help propel it moving forward? Here’s what CEO Austin Russell had to say, “Luminar is the first and only company that meets the stringent performance, safety, and economic requirements for autonomous production vehicles, and is proud to count Mobileye as a cornerstone launch program,” Has all this earned LAZR stock a spot on your 2021 watchlist?