NIO Limited (symbol ‘NIO’) share price incurred losses for the quarter and declined by around 2%. The company’s earnings report for the fiscal quarter ending September 2023 is expected to be released on Tuesday 5th of December, before market open. The consensus EPS is $-0.43 against $-0.36 of the same quarter last year.
‘The fact that the company has had consistent negative earnings for the last 4 years, does not necessarily mean that the company is not growing. Based on the latest published balance sheet of 2022 the company has more than doubled its expenses on property,plant and equipment as well as long-term investments. It has also tripled its inventory while the cash on hand has declined by 25% and the long term debt also declined by more than 50%. All these indicate that the company is utilizing its cash reserves towards economic growth and is a company that is trying to establish itself in the highly competitive electric vehicles market.’ said Antreas Themistokleous, trading specialist at Exness.
Technical analysis shows that the price has lost its bullish momentum in early August and has yet to find sufficient support to rebound to the upside. Currently the 50 day moving average is still trading below the 100 day moving average indicating that the overall bearish trend is still valid. On the other hand there are some minor indications that a correction to the upside might be imminent in the near short term. First the Stochastic oscillator is in the extreme oversold level and the lower band of the Bollinger bands is also acting as a support on the price at the time of this report been written. Both these might suggest that a correction to the upside might be seen in the coming sessions especially after earnings if there is a positive surprise on the actual figure.
‘The fact that the company has had consistent negative earnings for the last 4 years, does not necessarily mean that the company is not growing. Based on the latest published balance sheet of 2022 the company has more than doubled its expenses on property,plant and equipment as well as long-term investments. It has also tripled its inventory while the cash on hand has declined by 25% and the long term debt also declined by more than 50%. All these indicate that the company is utilizing its cash reserves towards economic growth and is a company that is trying to establish itself in the highly competitive electric vehicles market.’ said Antreas Themistokleous, trading specialist at Exness.
Technical analysis shows that the price has lost its bullish momentum in early August and has yet to find sufficient support to rebound to the upside. Currently the 50 day moving average is still trading below the 100 day moving average indicating that the overall bearish trend is still valid. On the other hand there are some minor indications that a correction to the upside might be imminent in the near short term. First the Stochastic oscillator is in the extreme oversold level and the lower band of the Bollinger bands is also acting as a support on the price at the time of this report been written. Both these might suggest that a correction to the upside might be seen in the coming sessions especially after earnings if there is a positive surprise on the actual figure.