Why Nio Stock Is Exploding Ahead of Earnings
Nio (NYSE: NIO) stock bounced back sharply this morning and was surging as high as 8% as of 11:30 a.m. ET. A rival just made a huge growth move in the only international market Nio is targeting, but investors are placing big bets on Nio ahead of earnings and on speculation of the launch of a new car model in the coming weeks.
Nio will report its fourth-quarter and full-year 2021 earnings on March 24 after market close. The stock sank yesterday after Deutsche Bank analyst Edison Yu slashed his price target on Nio stock to $50 a share from $70 per share to factor in geopolitical and supply chain risks. Nio also faces the threat of getting delisted from the U.S. stock exchange alongside other Chinese stocks.
Yu also expects Nio's gross margin to fall sequentially in the fourth quarter to around 17% in the wake of surging raw material prices, according to CnEvPost. Further, Yu expects Nio to deliver only around 25,000 vehicles in the first quarter, or similar to the fourth quarter.
Source Fool.com
