28 May: FFIE Doomsday or Breakout Day?
$Faraday Future Intelligent Electric Inc.(FFIE)$
One of the most pronounced beneficiaries of recent meme trading phenomenon is EV maker Faraday Future Intelligent Electric Inc.(FFIE)
Its shares soar around +2,200% in the trailing month and it is about to face another test in the coming week.
On coming Tue, 28 May 2024, FFIE will be releasing its belated Q4 2023 earnings after US market closes.
Q4 Earnings Forecasts.
- Analysts are expecting the followings:
- Revenue: $2.039 million vs $0.6 million (Q3 2023). This is a +339% gain QoQ.
- Earnings per share (EPS): -$3.51 per share vs -$3.78 (Q3 2023). This is a +7.14% gain QoQ.
Mathematically, the numbers look “great”, but absolute amount is hardly worth celebrating!
There is no question that the EV maker's stock price has surged to impressive heights recently on the back of last week’s meme stock rally.
Before the noteworthy short squeeze that lifted FFIE stock, Faraday’s future looked highly questionable.
The struggling penny stock had spent months gradually trending downward and garnering no momentum.
On Tuesday evening, investors will witness (for themselves) if the company:
- Truly has long-term growth prospects OR
- Current momentum will run out of steam during H2 2024.
FFIE Stock Post Earnings.
After more than a week of high momentum, FFIE stock was slipping on 24 May 2024 again. (see above)
For the week of May 20-24, its down -40.97% to $1.16 per share.
Even after its initial plunge on Fri, 24 May 2024, FFIE was still up > +100% gain for the 2 weeks.
Since Friday, it does appear the momentum may be waning.
Could FFIE’s upcoming earnings report be exactly what it needs, to generate more sparks and regain its momentum?
Outstanding Setback?
Unfortunately, there is still one critical factor casting FFIE in a bad light.
Faraday recently delayed its 10-Q filing, revealing that it would miss the deadline.
Sample 10-Q form
As InvestorPlace author Larry Ramer reported:
- Faraday disclosed that it would not be able to file its 10-Q with the SEC by the deadline.
- Filed quarterly, 10-Q forms include “unaudited financial statements” and are supposed to provide investors with “a continuing view of the company’s financial position during the year.”
- SEC requires publicly traded companies to file these forms.
- Faraday stated that it was unable to file the Form 10-Q on time because its annual report, or Form 10-K, had been delayed.
- The EV maker, however, did indicate that it does not believe “results of operations” changed significantly in Q1 2024 compared to Q1 2023.
Do we just take the car maker's words for it? No way !
My viewpoints: (mine only!)
As mentioned previously, FFIE’s C-suite members are really unbecoming.
There should be fines imposed on these management staff to instill some sense of urgency.
If only FFIE’s Head of Production is able to ramp up production, its top line would easily be through the roof.
This is because a basic entry FFIE EV costs at least US$249,000.
Also during the post earnings conference, FFIE should update investors about progresses in FFIE’s partnerships with Master Investment Group and Siraj Holding in the Middle East, announced on 27 Nov 2023.
It could give investors' hopes.
In theory, FFIE stock could have another good run to keep it clear of the danger zone.
According to Fintel, the EV maker’s short interest stands at 31.45% of its float.
Such a high ratio can create a positive feedback loop to panic out the bears, thereby fueling upside pressure.
At the same time, the short ratio is only 0.22 days to cover.
Essentially, the bears can quickly exit their short positions, making it difficult for the bulls to trap them.
Personally, I rather the meme rally go to $NIO Inc.(NIO)$ & $Li Auto(LI)$ - the substantial Chinese EV makers.
- Do you think FFIE will be able to sail through the rough patch smoothly ?
- Do you think FFIE’s Q4 2023 earnings will contain “positive” surprises to rally stock price higher ?
If you find this post interesting, give it wings! ️ Repost and share the insights ?
Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Wow can it go back to $3?
Pls help to "Re-post". Tks! Rating is important (to me).
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!