NIO Stock Plunges 50%: Is It Time to Sell or Buy the Dip?
$NIO Inc(NIO.US$ $Tesla(TSLA.US$ $BYD COMPANY(01211.HK$ $XPeng(XPEV.US$ The article reported that as the EV market is seeing significant downside currently, Nio stock is only one of the companies experiencing big-time downside. The fact is that NIO stock is down nearly 50% tells most investors what they need to know about this stock’s performance thus far.
I summarized 3 problems Nio is facing:
1) Predicting long-term stock prices involves complex analysis of various factors like interest rates and management quality. Trend analysis can help by using historical performance to forecast future returns. For Nio, the past 5 years show an annualized return of -2.7%, suggesting a potential future value of $4.03.
2) Recent developments have led to significant declines in Nio’s stock, notably its latest vehicle delivery figures. Although March saw an increase in deliveries to 11,866 vehicles, Q1 2024’s total of 30,053 fell short of expectations, with a 3% year-over-year decrease. Additionally, poor fiscal results persist, impacting Nio’s stock performance.
3) Despite a sequential increase in vehicle margins in the December quarter, net losses surged by 36.8% to $756 million. Nio’s annual revenue growth remained in single digits, accompanied by declining margins and nearly $3 billion in net losses. Persistent challenges continue to weigh on Nio’s performance over the past three years.
My take: I chose a neutral title for my post because the article did share some "optimistic" views about the stock. But in the last paragraph , the analyst suggested "it may be best to sell or avoid Nio stock". I have also shared that a hedge fund trimmed 84% of its stake in NIO stock recently:
Baillie Gifford Dumped 84% of Its Stake in NIO Stock
Baillie Gifford Dumped 84% of Its Stake in NIO Stock
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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ZnWCOP : $NIO-SW (09866.HK)$ share price continues to hit a new 52-week low AND historical low price of 29.50 HKD this morning. According to Market Watch, the stock has fallen about 60% YTD.
总加速师 : Stay away from Chinese stocks