Nio's stock dropped after meme stock rally, but potential for high growth and cheap valuation.

From Nasdaq: 2024-12-25 05:55:00

During the 2021 meme stock rally, many electric vehicle stocks, including Nio, hit all-time highs due to low interest rates, stimulus checks, and FOMO. However, Nio’s stock has since dropped to less than $5 as growth slowed and valuations popped.

Nio’s enterprise value of 67.6 billion yuan makes its stock look cheap at less than 1 time this year’s sales. With battery-swapping advantages, accelerating deliveries, stabilizing margins, and room to grow, Nio could be a high-growth stock again.

Nio’s deliveries doubled in 2020 and 2021 but slowed in 2022 and 2023. In 2024, deliveries accelerated again, countering bearish views. Analysts expect Nio’s revenue to grow at a CAGR of 29% from 2023 to 2026, making it a potentially lucrative opportunity for investors.



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