Should I Buy NEON? NEON 2026 Analysis

Should You Buy Neonode Inc (NEON) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Sell

Latest Price

1.820

1 Day change

7.69%

52 Week Range

29.900

Analysis Updated At

2026/02/05

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Not a good buy right now: price is in a clear downtrend (SMA_200 > SMA_20 > SMA_5) and momentum hasn’t decisively turned.
Today’s move is risk-off (NEON -7.71% while S&P 500 -1.19%), suggesting stock-specific weakness.
No Intellectia edge today: AI Stock Picker and SwingMax both show no signal, so there’s no “must-take-now” setup for an impatient entry.
Options positioning is bullish-leaning (very low put/call), but that’s not enough to offset weak trend + deteriorating revenue.
With no news catalyst and poor recent financial trends, the higher-probability play is to avoid/exit rather than buy immediately.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Bearish structure with moving averages stacked negatively (SMA_200 > SMA_20 > SMA_5) → rallies are likely to face selling pressure.
Momentum: MACD histogram slightly positive (0.00217) but “positively contracting,” implying bullish momentum is weak/fading rather than accelerating.
RSI (6): 32.26, near oversold territory; this can spark bounces, but oversold alone is not a buy signal in a downtrend.
Key levels: Pivot 1.871 overhead; near-term resistance R1 1.993 then R2 2.069. Support is tight at S1 1.749 and S2 1.673; current price (1.73) is already below S1 and close to S2 → downside risk remains immediate.
Pattern-based forward view: modeled odds point to only modest expected gains (next day ~0.14%, week ~0.92%, month ~4.63%), not compelling given current drawdown and volatility.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Very low put/call (OI 0.39; Volume 0.08) indicates call-heavy activity → bullish/speculative positioning.
Activity surge: Today’s option volume (511) is ~321% of the 30-day average → heightened interest, but it can reflect speculation rather than informed accumulation.
Volatility: 30D IV ~150.57 vs historical vol ~42.32 → options are pricing extreme moves; this typically coincides with elevated uncertainty.
IV trend: 5D/10D average IV (184/190) higher than current 150, suggesting IV has come off recently, but it remains very elevated.

Technical Summary

Sell

Buy

Positive Catalysts

- Options market is positioned bullish (call-heavy put/call ratios) and activity is elevated, which can support short-term bounce attempts.
- RSI near oversold can trigger reflex rallies if selling pressure eases.
- Gross margin reported very high (97.91%), indicating strong unit economics on what revenue exists (though scale is the issue).

Neutral/Negative Catalysts

- Strong bearish trend (moving averages stacked bearishly) and price is below key pivot levels.
- No recent news in the last week → no clear event-driven catalyst to reverse sentiment.
- Company fundamentals show sharp revenue contraction and large YoY deterioration in net income/EPS.
- High implied volatility suggests large adverse swings are being priced in.
- Trading flows: Hedge funds and insiders are neutral (no supportive accumulation signal).
- Influential/political activity: No recent congress trading data available (no supportive public signal).

Financial Performance

Latest reported quarter: 2025/Q3.
Revenue: 430,000, down -48.69% YoY → severe top-line contraction.
Net income: 14,184,000, down -1404.88% YoY (directionally much worse YoY) → earnings quality/consistency is a concern.
EPS: 0.85, down -1314.29% YoY → significant deterioration.
Gross margin: 97.91%, up +0.67% YoY → margins are high, but the main issue is collapsing revenue and unstable profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating or price target change data was provided, so a current Wall Street consensus view can’t be confirmed from this dataset.
Pros (typical bull case framing given the data): high gross margin and call-heavy options sentiment could support a speculative bounce.
Cons (dominant given the data): steep revenue decline, deteriorating earnings metrics, and a confirmed bearish technical trend with no catalyst.

Analyst Rating

Wall Street analysts forecast NEON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEON is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy

Hold

Sell

Current: 1.690

Low

Averages

High

Current: 1.690

Low

Averages

High

Ladenburg

Glenn Mattson

Buy

Neutral

downgrade

AI Analysis

2025-09-04

Reason

Ladenburg

Glenn Mattson

Price Target

AI Analysis

2025-09-04

downgrade

Buy

Neutral

Reason

Ladenburg analyst Glenn Mattson downgraded Neonode to Neutral from Buy with a price target of $6, down from $16.50. The company settled its patent lawsuit for a \"low number,\" the analyst tells investors in a research note.

NEON Should I Buy

NEON Should I Buy

Should You Buy Neonode Inc (NEON) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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