WHY DID NIO DROP? - BUY OR SELL AT $38? - NIO Stock Price Prediction / Update

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We just have to talk about NIO Stock. On Tuesday it went down 13% based on both the delivery reports and the earnings call and now it has even seen prices of below 40 dollars a share. In today’s video we will be going through everything you need to know about these two reports, why they were perceived to be UNDERWHELMING and also why I believe the massive drop in share price WAS NOT warranted at all AND WHY I JUST PICKED UP 30 MORE SHARES and probably will keep buying if it drops more.. There is alot to talk about so make sure to watch all the way so you don’t miss anything.

Firstly, looking at the stock chart NIO has not been doing too well being down more 30% from the all time highs back to levels that haven’t been seen since November of 2020. It managed to hover around the 60 dollar levels for quite a long time before the NASDAQ and the entire stock market selloff happened where other EVs like Tesla and XPeng also dropped quite a bit. And that really takes us to the first reason for why NIO has dropped and that is a change in market sentiment and simply panic selling and profit taking becoming more prevalent. As you can see all these stock charts do have some similarities so that aspect of the drop doesn’t have anything to do with NIO as a company.

This does not however entirely explain the drop so let’s jump into those reasons. After the market closed on Monday NIO released their financial results showing a total Q4 revenue of just over 1 billion dollars which is up 133% compared with the same period last year and just compared to the previous quarter Q3 that is still up 46.7%. In the end they reported a loss of 220 million dollars which again is HALF the loss they had in Q4 of 2019 but still a bigger loss than Q3 of 2020 and in the end this was a bigger loss than wall street analysts had expected. 14 cents per share compared to Wall Streets 7 cents per share.

On that same day of the earnings report being announced NIO also released their delivery numbers for February of this year and it was the first month numbers had decreased since july of 2020. These two news combined with the broader stock market sell-off caused NIO to drop drastically and the Nasdaq taking a big hit this entire week just made it go down even more.. BUT WAS THIS WARRANTED?

Видео WHY DID NIO DROP? - BUY OR SELL AT $38? - NIO Stock Price Prediction / Update канала Financial Dragon