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CPTN Stock Alert: what’s going on with Cepton today?


What’s going on with Cepton (NASDAQ:CPTN) Inventory?

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Shares of the California-based light detection and ranging (lidar) technology company rose 200%. At one point this morning, stocks were up another 300%! However, the actions quickly began to reverse after the opening bell. As of this writing, CPTN stock is down just under 1%.

Cepton has just completed the merger of its special purpose acquisition company (SPAC) with Growth Capital Acquisition. CPTN shares began trading on February 10 and things really took off a week later.

So what is the reason for the major spike? Perhaps investors are excited about Cepton’s underlying business in the lidar space. This week has also seen investors chasing after Quanergy Systems (NYSE:QNGY), another lidar reader.

Without more specific news, here are five things to know about Cepton.

5 things to know about CPTN stocks

  1. Cepton manufactures sensors that are primarily used in self-driving cars.
  2. Investors may also be excited about its projected growth. Cepton says its revenue will grow from around $15 million this year to $250 million in 2024. However, the company does not expect to become profitable until at least 2024.
  3. In addition to self-driving cars, Cepton’s sensors are used in Internet of Things (IOT) applications, one of the hottest areas in the tech industry today.
  4. The company is led by Jun Pei, who holds a doctorate in electrical engineering from Stanford University. The CEO is credited with having developed the first optical and acoustic combination technique in the measurement of thin films of semiconductors.
  5. Cepton received about $150 million less than expected from its SPAC merger after holders of more than 90% of shares in Growth Capital Acquisition demanded to exchange them for cash. This follows a trend of increasing pre-merger buyouts.

What’s next for Cepton?

It is unclear what has fueled CPTN’s stock in recent days. It could be that the stock is being targeted by aggressive retail traders or it could be the result of excitement about the company’s debut in the market and its future prospects.

What is clear is that it is highly unusual for a stock to jump more than 500% immediately after going public. Investors should proceed with caution.

As of the date of publication, Joel Baglole had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

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