Innovative Eyewear (LUCY) stock soars 100% following target partnership

Innovative Eyewear Inc. (NASDAQ: LUCY) rallied more than 100% on Thursday after a press release confirmed its Lucyd Lyte frames are now available on Target.com.

Target is among the largest big box retailers in the United States.

Teaming up with it gives a huge opportunity for LUCY to bring its cutting-edge products to millions of potential customers.

The Florida-based company also makes smart eyewear under other notable brands, including Reebok, Eddie Bauer, and Nautica.

Despite today’s rally, Innovative Eyewear stock is down a whopping 65% versus its year-to-date high in late May.

Target will help Innovative Eyewear expand in the US

Innovative Eyewear expects the Target collaboration to help significantly expand its footprint in the US and further strengthen its position as the leader in wearable tech.

The announcement is part of the company’s commitment to making smart eyewear accessible to everyone.

Harrison Gross – the chief executive of LUCY said in a press release today:

Last week, Innovative Eyewear partnered with Geenee Inc. to tap into augmented reality technologies and offer what it’s calling the next-generation smart eyewear shopping experience.

However, LUCY share price has been a big disappointment for investors in 2024.

Should you invest in Innovative Eyewear stock?

Part of the reason that Innovative Eyewear stock has underperformed recently is the weakness in its financials.

The smart eyewear company missed Street expectations for both profit and revenue in its latest reported quarter.

CEO Gross did, however, talk of further expansion, upcoming launches of new product lines, and an upgraded app in the earnings release at the time. However, the optimism was overshadowed by other recent developments.

To begin with, LUCY enacted a 1-for-20 reverse stock split last month to remain listed on the Nasdaq. It resorted to a direct offering as well as a private placement this year to raise a total of about $2.6 million which further indicates cash flow issues.

Heading into Thursday, the relative strength index (RSI) placed Innovative shares in the oversold territory. Still, investors should remain cautious since analysts do not expect the Nasdaq-listed firm to turn profitable in 2024.