Mobileye has moved into the fast lane with shares speeding up 50 percent just a couple of hours after its Friday initial public offering on the New York Stock Exchange.
The company makes collision-avoidance technology for automakers such as BMW, General Motors, and Tesla, as well as its own self-driving cars. Mobileye priced its shares Thursday at $25 for an approximate valuation of $5.3 billion. By Friday midday, shares traded around $38 per share, giving the company a market cap greater than $8 billion.
A majority of traders on StockTwits are bullish on the stock with several discussing the company’s relationship with automakers as reason enough to be optimistic about the stock’s potential and the company’s room for growth in an emerging market.
Mobileye earned $208.15 million from the sale of 8.25 million shares through the offering. The company reports to have 3.3 million cars on the road using its technology. It reported $35.65 million in revenue for the first three months of the year, but posted a net loss of $19.56 million for the same period.