(VIANEWS) – Nikola (NASDAQ:NKLA) shares have fallen 16.54% over the past five sessions, falling from EUR1.27 to EUR1.06 by 18:33 EST Thursday evening – this falls after three consecutive losses on NASDAQ. Nikola has fared particularly poorly as their last closing price stood at EUR1.04, an astounding 73.93% lower than its 52-week high of EUR3.97.
About Nikola
Nikola Corporation is a technology innovator and integrator that specializes in energy and transportation solutions. Operating through two business units – Truck and Energy – Nikola offers sustainable solutions to the trucking industry. Through these units, Nikola develops and commercializes battery electric vehicles (BEV) and hydrogen fuel cell electric vehicles (FCEV) specifically tailored for this sector; whilst Energy builds out a network of hydrogen fueling stations and offers BEV charging solutions for both its FCEV customers as well as third party customers. Established in 2015 and headquartered out of Phoenix Arizona; Nikola Corporation strives towards driving sustainable solutions towards driving sustainable transportation in its future form.
Yearly Analysis
Nikola is currently looking at investing options:
According to available data, Nikola’s stock is currently trading at EUR1.06, significantly below its 52-week high of EUR3.97 but still above its low of EUR0.52. This suggests a substantial decline over the last year but also offers room for growth given its current position within its 52-week range.
This year and next, sales growth projections for this and next years is outstanding, estimating an increase in sales growth of 95.3% this year and 273% for next year – an excellent indication of future performance for any company and potentially driving up its stock price.
Nikola’s current EBITDA stands at -10.84, which indicates it is currently operating at a loss and not generating positive cash flow from its operations. This may cause concern among investors as this suggests the company may not be financially secure in the near term.
Overall, Nikola’s stock offers potential for growth based on anticipated sales expansion. Investors should take care when considering Nikola’s current financial status and the risks involved with investing in companies with negative EBITDA margins; it may be prudent to conduct further research before making investment decisions.
Technical Analysis
Nikola Corporation’s stock has seen an alarmingly steep decline, falling significantly below both its 50-day moving average of EUR1.46 and 200-day moving average of EUR1.61. This suggests that its share price has been on an downward trend for some time – acting as resistance levels along the way.
Today’s trading volume for this stock stands at 75,318,086, 27.35% lower than its average trading volume of 79,478,700 and may have played a role in its price decline. This could indicate a reduction in trading activity which may also explain its decline.
Nikola’s volatility has been on the rise in recent weeks and months, ranging from an intraday variation average of negative 4.04% to positive 8.02% – suggesting significant price swings which may be caused by changes in investor sentiment or market conditions.
The stochastic oscillator, an indicator of overbought and oversold conditions, indicates that Nikola’s stock may currently be considered overbought (>=80). This could signal that it’s time for correction or consolidation in its performance.
Nikola’s stock appears to be oversold and under considerable downward pressure, with high volatility and limited trading volume. Investors should exercise extreme caution in making any investment decisions regarding Nikola’s shares before doing so.
Quarter Analysis
According to available data, Nikola’s stock performance appears mixed. On one hand, sales have experienced negative growth by 27% during this quarter – suggesting the company may be struggling to maintain current levels of sales which may cause investors concern.
However, the company’s growth estimates for both this quarter and next are quite promising. They anticipate experiencing a 46.4% and 64.9% growth rate respectively in each of those periods – driven by positive revenue growth of 766.2% for next quarter alone.
Notably, year-on-year revenue growth for this company has declined by 15.3% year over year over the past twelve months and now stands at 56.84M – this may cause concern; however, their positive growth projections suggest they could turn things around soon enough.
Overall, investors should exercise extreme caution when considering Nikola’s stock. Though its growth projections appear encouraging, its recent sales decline and past revenue decline could raise red flags among some investors. To make an informed decision about investing in Nikola, one should research deeper into their financial statements and business model to ascertain whether their growth projections are realistic and sustainable over the long-term.
Equity Analysis
Nikola’s negative EPS figure of EUR-1.45 may cause concern among potential investors as profitability serves as an important barometer of its financial wellbeing.
Additionally, the company’s negative return on equity of -132.55% suggests that it may not be effectively using its equity to generate profits for shareholders. This indicates that its funds may not be being utilized efficiently enough in generating returns.
Overall, Nikola may not be an attractive investment at this time based on these financial metrics and indicators. Potential investors should carefully review these indicators alongside factors like competitive position and future growth potential before making their final investment decision.
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