7.37 +0.26 (3.63%)
Pre-Market: 8:06AM EST
|Bid||7.36 x 1000|
|Ask||7.37 x 4000|
|Day's Range||6.80 - 7.45|
|52 Week Range||5.35 - 13.80|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.87|
NEW YORK / ACCESSWIRE / November 14, 2018 / Shares of Chinese stocks YY Inc. and NIO Inc. were both in the green on Wednesday. While NIO Inc. didn’t have any remarkable news, YY Inc. saw its shares soar ...
For the average American, Nio (NYSE:NIO) may not resonate as a household name. Yet, market analysts and industry experts peg the automaker as China’s Tesla (NASDAQ:TSLA). Indeed, both companies carry an almost-mythical prestige among their proponents. However, both also have critical flaws. This makes NIO stock a rather tricky proposition.
FIS Astec Analytics released its latest weekly list of the hottest stocks among short sellers, and two popular cannabis stocks are still on the list . Cannabis Skeptics Cannabis stocks have been on fire ...
In the previous part of this series, we discussed how investors’ concerns about rising interest rates remain intact despite unchanged rates in the Fed’s recent meeting. The Fed continues to target a range of 2%–2.25% of the federal funds rate. The possibility of the Fed hiking interest rates in December, for the fourth time in 2018, remains open.
The fourth quarter started on a negative note for investors. US equities witnessed a sell-off. In October, the S&P 500 Index (SPY) lost ~6.9%, which marked the worst month for the index in the last seven years. Similarly, the Dow Jones Industrial Average (DIA) and the NASDAQ Composite Index (QQQ) ended October with ~8.1% and 5.1% losses, respectively. While the broader market saw a minor recovery in the last few weeks, it turned negative again this week. In the week ending November 9, the S&P 500 benchmark rose 2.1%, but fell 2.0% on November 12.
China’s Slowdown: How Severe Is It This Time? As we noted previously, some of the recent data points from China don’t portray a rosy picture of the world’s second-largest economy. China has been steering its economy away from an investment-driven economy to a consumption-driven economy.
China’s Slowdown: How Severe Is It This Time? China’s GDP grew 6.5% in the third quarter, which is the slowest expansion rate since 2009. The auto sales in China have fallen for four consecutive months.
NYU1 Stern School of Business professor Aswath Damodaran calls Tesla (TSLA) “the ultimate story stock.” He also stated on his blog that “investors in Tesla were investing in Elon Musk, not the company.” If we look at Tesla stock’s gains in the last five years, we could find some sense in Damodaran’s statements. TSLA stock has frequently rallied sharply based on Musk’s tweets about the company’s future plans and reassurance of meeting targets despite past failures.
Is NIO’s Story More Believable than Tesla’s? Previously, we looked at NIO’s (NIO) Wall Street journey since its listing on the New York Stock Exchange. Only ~40% of the analysts covering the stock recommend “buy,” while 50% are neutral and recommend “hold.” Let’s now look at some of the challenges NIO might face in its endeavor to become a popular electric carmaker like Tesla (TSLA).
Is NIO’s Story More Believable than Tesla’s? NIO (NIO) stock has been highly volatile since its listing on the New York Stock Exchange in September. NIO’s start on Wall Street underwhelmed investors with an IPO of $6.26 per American depositary share on September 12.
Nio earnings: The would-be Chinese rival to Tesla in luxury electric vehicles, reported a big loss Tuesday as it starts to boost production.
On November 7 after the market closed, Tesla (TSLA) announced its appointment of Robyn Denholm as Tesla’s new chair of the board. Denholm is currently working as CFO at Australia’s largest telecommunications firm, Telstra.
Investors should pay attention to popular analysts’ ratings, as they may affect the company’s stock price action. If a popular analyst changes his or her views, significant short-term movement in the stock price could follow. As of November 6, analysts’ consensus 12-month target price on NIO was $7.90, which reflected an upside potential of ~23.4% from its market price of $6.40.
As of November 6, NIO’s (NIO) forward price-to-book multiple was 38.9x. This multiple was calculated based on the company’s estimated book value for the next 12 months. At the same time, Tesla’s (TSLA) forward price-to-book multiple was much lower at 9.4x. Alibaba (BABA) and Baidu (BIDU), other Chinese companies, had forward price-to-book ratios of 4.9x and 2.6x, respectively.
NIO vehicle buyers have several options to charge their electric vehicles (or EVs) including Power Swap, Power Mobile, Power Home, and using China’s nationwide EV charging network. Among these, one of the much talked about options is the Power Swap option, which allows NIO car owners to swap their car battery at its battery swapping stations. The Power Swap service was initially expected to be a better option for EV owners, as the car battery can be swapped within a few minutes, while charging the battery at a station might take much longer.
The company’s future revenue growth is highly dependent on its upcoming car model ES6, which it expects to launch by the end of 2018. Consistent solid demand for ES6 could make NIO’s revenue grow faster than Tesla’s revenue at its initial stage. In the third quarter, NIO reported a gross loss of about 116 million Chinese yuan, or $16.9 million, as compared to a gross loss of 153 million Chinese yuan in the second quarter.
In the third quarter, NIO (NIO) reported net revenue of 1,470 million Chinese yuan (or ~$214.0 million) as compared to its revenue of 46 million Chinese yuan in the second quarter. However, the company’s third-quarter revenues were weaker than Wall Street analysts’ estimates of 1,589 million Chinese yuan.
In the third quarter, NIO reported an increase in its adjusted net loss per share to about 10.35 Chinese yuan, or $1.51 million, as compared to 57.82 Chinese yuan in the second quarter of 2018 and 58.52 Chinese yuan in the third quarter of 2017. The company’s reported loss was much worse than the Wall Street analyst estimates for a net loss per share of 2.36 Chinese yuan. NIO’s third-quarter earnings report was released on Tuesday before the market opened.
The stock market opened with gains early Tuesday as technology stocks outperformed early. Earnings reports remained on the front burner.
China’s so-called Tesla killer, NIO (NIO), announced its third-quarter results today. In the third quarter, NIO’s adjusted net loss widened to about 2,370 Chinese yuan or $345.1 million, compared to 1,724 in the second quarter. Earlier today, Wall Street analysts were expecting the company’s losses to increase to 2,696 yuan as the company began production of its ES8 SUV model. While the company’s bottom line managed to beat estimates, it missed analysts’ revenue estimates for the quarter. In the third quarter, NIO’s total revenue stood at about 1,470 million yuan or $214. ...
NIO stock is on the move today following the release of the company’s earnings report for the third quarter of 2018. Nio’s (NYSE:NIO) most recent earnings report has the company reporting losses per share of $1.51. The company doesn’t have earnings per share data from the same time last year.
Similarly, the Dow Jones Industrial Average (DIA) and NASDAQ Composite index (QQQ) ended October with about 8.1% and 5.1% losses, respectively. As of November 5, the S&P 500 index was up 0.6% month-to-date while the Dow and NASDAQ Composite were up 0.8% and down 0.4%, respectively. On the upside, no major resistance level is visible below the key resistance range of 2,785–2,815.
Shares of NIO (NYSE:NIO) popped on Tuesday after the company reported solid third-quarter numbers before settling down to pre-earnings levels. NIO earnings underscored that the Chinese electric-vehicle maker is ramping production, delivery, revenue and margins at a promising pace. But NIO stock investors shouldn’t read too much into this report. NIO has already surpassed that number and expects to deliver 10,000 ES8 vehicles by the end of the year.