Why Nio Stock Bounced Back Dramatically After Plunging 9.8% This Week
Nio (NYSE: NIO) stock was on a losing streak and had slumped 9.8% at its lowest point midweek. In just the last two days, though, the electric vehicle (EV) stock swiftly reversed course to recoup all of those losses -- Nio shares were trading flat for the week as of noon Friday.
Nio received at least three analysts' downgrades at the tail end of the week, but investors still bet big on the stock in anticipation of better days ahead for the EV maker.
With COVID-19 lockdowns forcing Nio to shut down two plans in October, investors turned wary about the company's third-quarter performance and view about the rest of the year. The stock tumbled, with Deutsche Bank analyst Edison Yu even slashing Nio stock's price target to $20 per share from $39 a share ahead of earnings.
Source Fool.com
