Why Akoustis Technologies Stock Is Surging

Akoustis Technologies, Inc. AKTS shares are trading higher Wednesday after the company reportedly floated the probability of bankruptcy after losing a lawsuit against Qorvo, Inc. and announced the final release to manufacturing of design updates across its product portfolio.

The Details:

Akoutis said it developed the updates to its XBAW manufacturing process to remove any patented features claimed by Qorvo and the updates have been incorporated into both new XBAW RF filters and many earlier XBAW filter designs since the fall of 2022. 

The company has released the design updates, effective immediately, to manufacturing for the remainder of its filter products that remain in production and distribution as needed to remove any potential infringement.

On Monday, the company announced that a jury in the U.S. District Court for the District of Delaware ruled in favor of Qorvo in a lawsuit against Akoustis.

“While Akoustis is disappointed with the jury’s verdict, the Company prepared well in advance for all potential outcomes,” commented Dave Aichele, Executive Vice President of Business Development. 

“Based on our testing and qualification over the last two years, the design updates to these earlier XBAW filters do not have any form, fit or function impact to the performance and reliability, as the Qorvo patented claims were not design features of the XBAW process. Akoustis is well-prepared to move forward notwithstanding any injunction Qorvo may seek against the accused legacy versions of our products.”

The company also said it does not expect the verdict will affect its ability to market its product portfolio to existing and future customers.

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How To Buy AKTS Stock:

By now you're likely curious about how to participate in the market for Akoustis Technologies – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

AKTS Price Action: According to Benzinga Pro, Akoustis shares are up 223% at 44 cents at the time of publication Wednesday.

Image: Pete Linforth from Pixabay