Why Nio Stock Dropped Today
The president of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) spoke at a media event this week, giving investors some news about the company's growth plans. Some of that news had the stock moving higher earlier in the week. But after an analyst price-target cut yesterday, investors are selling today. As of 2:12 p.m. ET, Nio's American depositary shares were trading down 2.6%.
Yesterday, Barron's shared that analyst Soobin Park with Asian investment group CLSA cut her price target on the stock from $60 to $35 but left her rating as a buy. That buy rating would seem to make sense as the new price target still represents a 37% increase above yesterday's closing share price. But after the stock jumped on some company-related news earlier this week, investors seem to be looking at the negative connotation of the analyst price cut.
Source Fool.com
