Is there hope for HOLO stock? Surprising, yes

As markets reeled from their worst sell-off since Covid, one penny stock from the bleeding edge of tech held up surprisingly well, though not for the reasons you might expect.

Shares of MicroCloud Hologram (HOLO), a China-based provider of holographic software and hardware, swung between gains and losses on Thursday before settling down just 2.3% to $0.70.

That’s a modest move compared to the carnage elsewhere: the S&P 500 fell 4.8%, and the small-cap Russell 2000 plunged 6.6%.

HOLO isn’t a value play — far from it. The stock is down a staggering 85% year to date and trades at a fraction of its 52-week high of $92.20. Thursday’s relative outperformance likely came from one thing: seller exhaustion.

With a market cap under $15 million and trading volumes down 67% from average, investors have mostly tapped out.

HOLO’s meteoric rise and collapse were driven by overblown hype around its holographic tech. The looming threat of a Nasdaq delisting hasn’t helped either.

The stock continues to trade below the $1.00 minimum bid price required to maintain its listing on the exchange despite the October reverse split.

Is there hope for HOLO?

Surprisingly, yes — at least on paper.

Despite the stock’s freefall, MicroCloud Hologram has built a strong IP moat. It holds 183 holographic patents and nearly 1,700 copyrights in holographic content.

In 2024, revenue jumped 42.1% to $40.76 million, while its cash and cash equivalents surged 575% to $118.45 million.

Chairman Wei Peng struck an optimistic tone, saying the company will “leverage this momentum to accelerate R&D investment in holographic technologies, deepen [the] integration of cutting-edge solutions, expand our global footprint, and enhance product/service quality and competitiveness.”

But let’s be clear: the digital holography market is still tiny.

Estimates put the total addressable market between $3 billion and $5 billion today — with room to grow, but nowhere near enough to guarantee a smooth ride for HOLO in the short term.

For now, investors hoping for a comeback are betting on long-term potential, not current performance.