Data showed Nio Stock Is Susceptible to Further Downside
$NIO Inc(NIO.US$ $Tesla(TSLA.US$ $BYD COMPANY(01211.HK$ $XPeng(XPEV.US$ The article reported that analysts are assigning a “D” grade to Nio stock and they don’t recommend buying it now. Earlier this month, they provided a warning to prospective investors of China-based electric vehicle manufacturer, Nio. Now, they have more data on Nio, and the bearish argument is only getting stronger. The article gave 3 reasons:
1. Nio’s Awful Quarterly and Annual Results
Alarmingly, Nio lost 20.7198 billion RMB in 2023, which is substantially wider than the company’s net loss of 14.4371 billion RMB from 2022. To put this in dollar terms, Nio lost a whopping $2.9183 billion last year.
2. Nio Stock Gets Two Price-Target Cuts
For instance, Morgan Stanley analyst Tim Hsiao reportedly reduced his Nio share-price target from $13 to $10 not long ago. That target might actually be too optimistic, though, since NIO stock traded at $5 and change in mid-March. Meanwhile, Bernstein analyst Eunice Lee reportedly cut her Nio share-price target from $7.50 to $5.50. This is probably more realistic than Hsiao’s $10 target.
3. Nio Stock Is Susceptible to Further Downside
Given the aforementioned data points, and considering the fierce competition in the EV space, even Lee’s $5.50 Nio share-price target may be too optimistic. Unless Nio turns a corner and starts posting more favorable data, Nio shares could lose much more value.
Related article:
Nio's Annual Loss widen post Net Loss US$2.9 billion in 2023
Nio's Annual Loss widen post Net Loss US$2.9 billion in 2023
Comment: If you read the related article, there were many analysts signaling 'stay away from Nio stock'. Despite someone promoting the stock vigorously, data showed a bearish outlook.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
2311Followers
85Following
9862Visitors
Follow
ZnWCOP : This article showed what dragged Nio share price down is investors have no confidence in the company. Yesterday $Tesla (TSLA.US)$ and $Li Auto (LI.US)$ increased by 2.53% and 3.71% respectively while $NIO Inc (NIO.US)$ dropped 1.73% hit close to 5 USD.
AJ1977 : An experienced investor will not trust such news. Majority of such news are to create panic for those inexperienced investors to sell during the slide. Then as soon the price drop to a low, some positive news will emerge to boost the buy up. When most are selling, someone must be buying. Who brought?
Stay convicted else just give up.
ZnWCOP AJ1977: Negative Free cash flow or FCF and annual net loss widening are evidence that Nio may run out of cash in the next 2 years. It may prompt the CEO selling convertible bonds (again) to raise more fund and dilute the share further.
Nio's Annual Loss widen post Net Loss US$2.9 billion in 2023
https://www.moomoo.com/community/feed/112046916567046?share_code=00MVa3
103027647 : this investor place always roti prata when up say up when down say negative thing
ZnWCOP 103027647: This is not from Investor Place.
Negative Free cash flow or FCF and annual net loss widening are evidence that Nio may run out of cash in the next 2 years. It may prompt the CEO selling convertible bonds (again) to raise more fund and dilute the share further.
Nio's Annual Loss widen post Net Loss US$2.9 billion in 2023
https://www.moomoo.com/community/feed/112046916567046?share_code=00MVa3
ZnWCOP 103027647: NIO shares downgraded with lower price target to $6 from $9.80
https://www.moomoo.com/community/feed/112048216015258?share_code=00L03Q
股利股怪 AJ1977: I agree, listen to analyst is just walking straight into their trap.
ZnWCOP 股利股怪: This is from Market Watch consistently forecasted the stock hit 5 USD a month ago.
Nio’s stock dives after JP Morgan slash target price by more than 40% to 5 USD
https://www.moomoo.com/community/feed/111996568010758?share_code=00MWfC
股利股怪 ZnWCOP: lol that’s precisely walking into their trap.
AJ1977 ZnWCOP: Yes, u r correct. If investors have conviction on NIO, they will hold. How many hedgefunds still holding NIO? Why didn’t all of them cut off? They stupid?
View more comments...