XPeng, Inc. ADR ( (XPEV) ) has fallen by -7.46%. Read on to learn why.
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XPeng, Inc. ADR has experienced a notable decline in its stock price over the past week, dropping by 7.46%. This downturn comes amidst a backdrop of mixed market sentiments and fluctuating options trading activities. Despite the recent dip, Morgan Stanley analyst Tim Hsiao has maintained a Buy rating on the company, setting a price target of HK$131.00, which suggests confidence in the company’s long-term potential. However, Hsiao’s track record shows an average return of -2.3%, which might influence investor perceptions.
The company’s recent financial performance has been a mixed bag, with XPeng reporting a quarterly revenue of HK$18.27 billion and a GAAP net loss of HK$477.75 million for the quarter ending June 30. This is a significant improvement from the previous year’s revenue of HK$8.11 billion and a GAAP net loss of HK$1.28 billion. Despite the revenue growth, the market’s reaction has been cautious, as reflected in the stock’s recent performance.
Options trading around XPeng has shown a varied sentiment, with some traders taking a bearish stance while others remain bullish. The implied volatility has been high, indicating expectations of significant price movements. The put-call skew has steepened, suggesting increased demand for downside protection. These factors, combined with broader market conditions and competition from other EV makers like Tesla and Li Auto, have contributed to the stock’s recent volatility.