Investors Should Keep an Eye on Mobileye

Keep an eye on Mobileye (MBLY).

Out of the gate, the new IPO opened at $26.71 after pricing 41 million shares at $21.  The stock is now up to $29.39 a share on an intraday volume of 27.29 million.

While MBLY isn’t new to most of the market, it still offers an interesting opportunity. For one, MBLY was publicly traded before Intel bought it in 2017 for $15.3 billion.

Two, as noted by CNBC, “Founded in 1999, Mobileye has partnered with Audi, BMW, Volkswagen, GM, and Ford to develop advanced driving and safety features such as driver assist and lane-keeping using the company’s ‘EyeQ’ camera, chips, and software. Mobileye CEO Amnon Shashua said in the IPO filing that 50 companies are currently using the company’s technology across 800 vehicle models.”

Three, according to its S-1, “We have experienced significant growth since our founding. For 2021, 2020, and 2019, our revenue was $1.4 billion, $967 million, and $879 million, respectively, representing year-over-year growth of 43% in 2021. For the six months ended July 2, 2022, and June 26, 2021, our revenue was $854 million and $704 million, respectively, representing period-over-period growth of 21%.”

The S-1 can be found here.

Four, Intel’s CEO Pat Gelsinger wants to capitalize on the company’s business, as the auto industry moves toward self-driving vehicles.  In fact, as Gelsinger told Reuters, the IPO was not a capital raise, but more of an entry into this unique market.

“It is a move to potentially move them into the market. It’s not a capital raise,” he said. “The autonomous vehicle segment is a strong segment for growth. It’s a tough market. At the same time, we’re believing this company should be public and this is the best way to maximize the company’s potential.”

Vroom… Vroom.