Mobileye Share CFDs Guide: How to Trade MBLY Stock

Through its innovative driving solutions, Mobileye (MBLY) aims to reshape the way we interact with vehicles. Let's have a look at the autonomous driving company in this Plus500 trading guide.

We'll cover what drives its share prices, what the advantages and challenges of trading Mobileye stock are, and how to trade MBLY shares with Contracts For Difference (CFDs).

TL;DR

• Mobileye, a subsidiary of Intel (INTC), is a global pioneer in the field of advanced driver assistance systems (ADAS) and autonomous driving technology.
• The Jerusalem-based company was created in 1999.
• Multiple factors can influence Mobileye's stock price, from financial health and industry trends to competition and trader sentiment.
• With Plus500, you can trade shares with CFDs over the short term.
• They allow you to trade rapid stock price changes without owning the underlying shares.

What Is Mobileye?

Mobileye is an innovator in the automotive industry, specialising in advanced driver assistance systems (ADAS) and autonomous vehicle (AV) technology. The company harnesses expertise in computer vision, machine learning, mapping, and data analysis to develop solutions that enhance vehicle safety and drive the future of mobility.

The firm's portfolio includes a range of technologies, from cameras and sensor chips to in-car networking and cloud-based data management, offering a unified approach to automotive safety and automation.

Mobileye's Main Solutions

Founded with a mission to enhance road safety and elevate the driving experience, Mobileye has rapidly emerged as a leading force in the automotive industry with multiple solutions:

• Autonomous Vehicles
• Advanced Driver Assistance Systems:
  • Mobileye 8 Connect
  • Mobileye Shield+ 4
• Driver-Assist Solutions:
  • Base Driver Assist and Cloud-Enhanced Driver-Assist for Hands-on & Eyes-on options
  • Mobileye SuperVision Hands-off & Eyes-on options
  • Mobileye Chauffeur for Hands-off & Eyes-off options
  • Mobileye Drive for No driver options

Brief History of the Mobileye's Company

• 1999: Mobileye is established.
• 2007: The groundbreaking FirstEyeQ chip is introduced.
• 2014: Mobileye makes its public debut on the NYSE, valued at $5.3 billion.
• 2015: Mobileye's solutions gain widespread adoption, powering 160 car models from 25 automakers.
• 2017: Intel acquires Mobileye in a significant deal valued at $15.3 billion.
• 2018: Mobileye embarks on a global initiative to crowdsource map data.
• 2021: Mobileye expands its autonomous vehicle testing to three continents and reaches a major milestone with the shipment of the 100 millionth EyeQ chip.
• 2022: Mobileye returns to the public market, listing on Nasdaq with a valuation of $16.7 billion.

Mobileye and Intel

Intel made a strategic move to acquire Israeli autonomous vehicle technology firm Mobileye for $15.3 billion in 2017, aiming to position itself as a leader in the automotive industry's shift towards autonomous driving. This acquisition allowed Intel to integrate Mobileye's cutting-edge technology with its own autonomous driving group.

This deal aimed to propel Intel into the top tier of automotive suppliers and marked its expansion beyond its core semiconductor business. By investing in Mobileye, Intel sought to establish the technological foundation necessary for the future of autonomous vehicles. This acquisition also intensified the competition among global carmakers and suppliers in the rapidly growing market for self-driving technology.

Mobileye's Main Competitors

The assisted driving market is heating up with competition from both established players and innovative startups. Chip giants Nvidia (NVDA) and Qualcomm (QCOM) are vying for market share, while DeepRoute.ai, Pony.ai, and Momenta leverage Artificial Intelligence (AI) to offer compelling alternatives.

What Are the Most Important Price Drivers for Mobileye?

Many factors can affect a stock's price. Let's explore the key ones that might influence Mobileye's share value. Keep in mind that past performance is not indicative of future results:

• Financial Performance of Mobileye: Stock traders pay close attention to Mobileye's earnings reports during the earnings season, as they can offer valuable information about the company's current financial performance and future outlook.
• Industry Evolution: The evolution of driver assistance and self-driving technology can significantly influence stock prices as traders closely monitor advancements and market adoption. Both can impact the perceived value and future growth potential of companies in the sector like Mobileye.
• Competition: The competitive landscape in the automotive technology industry can impact Mobileye's market share and pricing power.
• Trader Sentiment: The overall health of the market and trader confidence can influence Mobileye's stock performance, depending on the overall sentiment, usually optimism or pessimism.
• Professional Ratings: Ratings from respected analysts at firms like Moody's (MCO), UBS (UBSG.VX), Barclays (BARC-L), Wells Fargo (WFC), and Deutsche Bank (DBK.DE), among others, may significantly influence a company's stock price. These ratings, often categorised as 'buy,' 'sell,' or 'hold,' reflect the analysts' evaluation of the company's financial strength, growth potential, and competitive standing.

Price History of MBLY Shares

Since its Nasdaq debut in 2022 at $26.71, Mobileye's stock price experienced significant growth, surging over 31% in 2022 and 23% in 2023. However, the momentum reversed in 2024, with the stock price plummeting by more than 67% to around $14.25 per share at the beginning of September 2024.

Mobileye Stock Trading: Opportunities and Risks

Trading Mobileye stock can offer opportunities, but also carries inherent risks.

What Are the Potential Advantages of Trading Mobileye Shares?

• Innovative ADAS and Autonomous Driving Solutions: Mobileye's cutting-edge technology positions it as a leader in the automotive tech industry.
• Strategic Focus on Cloud-Enhanced Driver Assist and Premium ADAS: Mobileye's solutions have the potential to revolutionise industry standards with their integration of cloud computing capabilities. By leveraging the power of the cloud, Mobileye can enable real-time data analysis, software updates, and advanced features, providing a more connected and intelligent driving experience.
• Collaborative Ecosystem: Mobileye's partnerships with key industry players, including Volkswagen (VOW.DE), Porsche AG (P911.DE), and Valeo (FR.PA), strengthen its market position.
• Evolving Mobility Landscape: Mobileye's ability to capitalise on emerging trends and technologies in the mobility industry, coupled with the growing regulatory pressure for ADAS features, may position the company for opportunities for growth.

What Are the Potential Risks of Trading Mobileye Shares?

• Limited OEM Dependence: Mobileye's reliance on a small number of original equipment manufacturers (OEMs) to integrate its solutions could impact its growth if these partnerships falter.
• Intense Competition: The automotive technology industry is highly competitive, with players like Recogni, Ghost Autonomy, and Helm.ai developing similar technologies that could threaten Mobileye's market share.
• Operational Risks: Effective deployment and operation of Mobileye's ADAS as a Service (AMaaS or Autonomous Mobility as a Service) solutions by third parties could be challenging, leading to operational risks.

What Are CFDs on Mobileye?

Contracts for Difference or CFDs on Mobileye are financial instruments that allow you to trade on the price fluctuations of Mobileye shares without actually owning the shares themselves.

A CFD is a financial contract between you and your CFD provider to exchange the difference in the price of Mobileye shares at the time you open the CFD contract and the price at the time you close it.

With CFDs, you trade with leverage. This means you can gain greater exposure to the underlying asset with less capital. However, whereas your initial investment is lower, your total profits and losses are calculated at full position value. Therefore, leverage also implies greater risks and losses.

Learn more about share CFDs' characteristics in our article dedicated to how to trade shares with CFDs.

How to Trade Mobileye's Shares with CFDs on Plus500

1. Select your trading style.
2. Choose a market analysis method that is between fundamental analysis and technical analysis.
3. Decide the technical triggers or the factors affecting Mobileye's share price you will follow to open your positions.
4. Create a comprehensive trading plan that incorporates risk management techniques, tools, and strategies to prevent typical trading errors.
5. Consider how you can control your emotions when trading and be in the right trading mindset before getting started.
6. Create and fund your Plus500 account.
7. Start trading CFDs on Mobileye and keep an eye on their performance.

Ready to trade Mobileye's shares? Open your account on Plus500 and start trading CFDs on Mobileye.