Vuzix (NASDAQ:) is well-positioned to capitalize on augmented reality’s growth over the long term. Its stock is trading at a loss of more than 20% over the last six months, and below its 200 day moving average. Is the stock a good investment given its high valuations? Read on, let’s discuss.Augmented reality technology company Vuzix Corporation (VUZI), which is based in West Henrietta, N.Y. designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, Asia-Pacific, Europe, and internationally. Over the past six months, VUZI’s shares have slumped 27.1% in price to close yesterday’s trading session at $12.31. The stock trades at a level below the 200-day moving median.

Despite reporting lower-than-expected third-quarter earnings, VUZI’s shares advanced significantly on November 9. The price rise was mainly a result of management’s bullish outlook. In 2022, the company plans to launch four smart glasses products and diversify its distribution channels in order to open up new markets worldwide. VUZI anticipates that it will deliver sequential revenue growth for the current quarter. The share’s gains weren’t sustained, as the price plunged by 10.3% at their most recent trading session.

There is tremendous potential for growth in the augmented reality market. VUZI still needs substantial growth in order to improve its standing within the industry, given its poor bottom line, low profit margins and weak bottom line. High volatility is also evident in VUZI’s 1.43 beta.

Continue reading on StockNews