|Bid||16.87 x 2900|
|Ask||16.93 x 1100|
|Day's Range||16.72 - 17.88|
|52 Week Range||9.21 - 24.90|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||30.00|
Pulling back at the start of 2021, Canoo (NASDAQ:GOEV) stock is bouncing back in a big way. As of this writing, shares are up 30.4% in the pre-market. Why are investors diving back into this SPAC (special purpose acquisition company), which completed its merger with privately-held electric vehicle maker Canoo late last year? Source: Canoo media Chalk it up to a news the company held partnership talks with Apple (NASDAQ:AAPL) in the first half of 2020. As you may know, the big tech powerhouse is throwing its hat into the EV ring. Given that this is something that happened months ago, there may not be much more to the story. This company hasn’t commented on its prior talks. And, it’s possible Apple has gone in another direction.InvestorPlace - Stock Market News, Stock Advice & Trading Tips But, even if the company doesn’t ink a deal with the tech giant, the rally in Canoo stock could continue. Shares could continue to climb, as the EV bubble remains fully in motion. 9 Stocks That Investors Think Are the Next Amazon So, what does that mean for investors a little late to the party? There’s possible upside from here, but tread carefully. Shares were changing hands for $12.50 per share as recently as Jan 4. A pullback back to this price level could happen if enthusiasm takes a breather. GOEV Stock and Partnership Deals There may not be much meat to the above-mentioned news of last year’s partnership talks with Apple. But, the Silicon Valley behemoth isn’t the only high-profile name looking to work with this upstart. Canoo already has an existing partnership with Hyundai (OTCMKTS:HYMTF), which was also an early investor in the company. Which, given recent news Hyundai is in talks with Apple about an EV partnership, makes things all the more interesting. Outside of the whole possible Apple-Hyundai web, there’s also been reports the company will enter a contract manufacturing deal with Magna International (NYSE:MGA). The auto parts giant has been active in partnering with other early-stage EV makers. As you may know, Magna last year inked a similar deal with Fisker (NYSE:FSR), another popular electric vehicle play. In short, the company has plenty of possible partnership deals in the works. But, it’s still uncertain whether the headline-making news will result in an actual deal (which could put more points into GOEV stock). Or, if it winds up moving in a different direction. Excitement over the Apple talks could fade. But, even if Canoo falls back from here, there are other reasons that make this unique EV upstart an interesting investment opportunity. Could the Unique Business Model be its Path to Profits? With so many EV companies going public via SPACs, it’s tough to differentiate them. Sure, each one differs in the details. But, by-and-large, upstarts like Fisker are employing a strategy similar to that of established players like Tesla (NASDAQ:TSLA). However, this one is taking a more unique approach. As InvestorPlace’s Mark Hake wrote Jan. 11, Canoo is offering its vehicles on a subscription-only basis. At first, this sounds like a traditional auto lease. But, based on the details (no lease term, no down payment), it’s more like applying the SaaS model to vehicles. Given this revenue model’s higher gross margins, I agree this sounds like a surefire way to quickly scale up to profitability. But, while it sounds good on paper, I am skeptical whether it will play out well in real life. Sure, millennials and others looking for the cache of driving an EV, but lack the money to buy a Tesla, may be eager to sign up. But, will U.S. households be willing to participate in an arrangement that requires little upfront commitment, but long-term is a much more expensive way to have access to a car? Only time will tell whether this unique business model pays off. Like with other newly-public EV names, the company touts ambitious financial projections for later in the decade. And some analysts, like Roth Capital’s Craig Irwin, see sales soaring to $1.4 billion by 2024. Rating shares a “buy,” Irwin’s price target for GOEV stock is $30 per share. Further Near-Term Gains Possible, But Tread Carefully Canoo remains a high-risk opportunity, given it’s speculation fueling its recent price moves. But, that doesn’t mean shares will pull back in the near term. And, not only due to the possible partnerships in the pipeline. With continued enthusiasm for EV stocks, this stock (currently at $22 per share) could head toward the $30 per share price level in the near-term. But, be careful. The renewed interest in GOEV stock could fast reverse course, if recent rumors fail to produce actual game-changing news. Tread carefully, but this definitely remains an EV stock to keep on your radar. On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post Going on a Tear Once Again, Tread Carefully With Canoo Stock appeared first on InvestorPlace.
The brand name Canoo (NASDAQ:GOEV) might sound funny, and the company’s electric vehicles certainly don’t look “normal.” But if you’re okay with an automaker that’s off the beaten path, then you’ll definitely want to check out GOEV stock. Source: Nick Starichenko/InvestorPlace.com Not only are the vehicles themselves unusual, but Canoo’s subscription-based business model might take you by surprise. However, an argument can be made that this way of doing business will provide strong ongoing revenues. You can probably already tell that GOEV stock really isn’t meant for closed-minded or extremely traditional investors. But then, folks who are willing to dive into electric-vehicle, post-SPAC stocks, are typically willing to accept some risk.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Another consideration is the price of GOEV stock, which experienced a substantial bounce in early January. So, does this mean that it’s too late to capture gains in this fascinating EV stock? A Closer Look at GOEV Stock Don’t expect GOEV stock to have a lot of history, as it’s a new stock that just started trading on Dec. 22. However, we can track the price action further back than that, albeit under a different stock ticker symbol. 9 Stocks That Investors Think Are the Next Amazon Previously, there was a shell company known as Hennessy Capital, which traded on the NASDAQ Exchange under the ticker symbol HCAC. Today HCAC stock is gone as the special purpose acquisition company (SPAC) deal was completed, so now we can trade GOEV stock. Yet GEOV didn’t get off to a great start: from Dec. 22 to Dec. 31, the stock dropped from $21 to less than $14. On Jan. 4, I got lucky and recommended buying GOEV stock at its exact short-term bottom, which was around $12.50. By the morning of Jan. 12, the share price had risen to $16.52. Still, this doesn’t mean that you’ve completely missed the opportunity to profit from GOEV stock. After all, it’s been as high as $24.90, and could get there again. Carving Its Own Path To steal a well-written phrase from InvestorPlace contributor Vince Martin, Los Angeles-based Canoo “is trying to carve its own path.” That’s a great way of phrasing the bullish argument in favor of GOEV stock over other electric-vehicle stocks. Just the name of the company should tell you that it is a truly non-conformist automaker. Canoo doesn’t expect to launch its first consumer model until 2022, so we’ll probably have to wait awhile to see the company’s vehicles on the roads. But if you check out Canoo’s investor deck, you’ll see vehicles that look like they belong in a science-fiction movie. For consumers and for prospective investors, these vehicles belong in the “love them or hate them” category. Just as importantly, Canoo’s vehicles offer “the flattest and lowest profile skateboard in the industry that enables a variety of vehicle configurations.” A Different Business Model To borrow from Martin again (as he undoubtedly understands car parts more than I ever will), Canoo’s skateboard is “a unique, proprietary chassis with an extremely low profile” which “allows for customized, modular vehicles with more space than their traditional counterparts.” Thus, Canoo’s vehicles are different, inside and out. The same can be said about the company’s business model, as Canoo doesn’t sell its vehicles outright. Rather, Canoo has a subscription-based model. In the investor presentation, the company describes it as a “No commitment subscription program that includes a vehicle and other services bundled into a single monthly payment.” Under that description, Canoo estimates that its subscription-based business model will generate a compound annual growth rate (CAGR) of 147% from 2022 to 2025. That’s a tremendous return on investment compared to the traditional, one-time-sale business model. Only time will tell whether a 147% CAGR is realistic, but it sure sounds enticing. The Bottom Line Some investors might insist on a conventional business model and traditional-looking cars. If that describes you, then GOEV stock probably isn’t right for you. Or maybe you’re willing to take a chance on something novel and non-conformist. If that’s true, then you might be willing to say, “Can do!” to Canoo. On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post It’s Not Too Late to Buy Canoo Stock at a Ground-Floor Price appeared first on InvestorPlace.
Canoo Inc. ("Canoo") (Nasdaq: GOEV), a company developing breakthrough electric vehicles (EVs) with a proprietary and highly versatile EV platform, announced today its Board of Directors including Executive Chairman Tony Aquila, Debra L. von Storch, Josette Sheeran, Thomas Dattilo, Rainer Schmueckle, Foster Chiang and Greg Ethridge after recently becoming a publicly traded company.