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- 1 NKLA Stock finally crossed the $1.00 barrier after months.
- 2 Positive CPI and PPI results created favorable conditions.
Nikola Corp. (NKLA Stock) surged 18.6% to $1.0800 on June 14 and by more than 90% in a week. It appears that investors are feeling a fear of missing out. The share price crossed the $1.00 mark for the first time after April 14, 2023. The surge can be attributed to Nikola’s annual shareholders’ meeting being postponed to July 6, 2023. Consumer Price Index (CPI) and Producer Price Index (PPI) reports positively affected the rally.
Nikola Corporation (NKLA Stock) – Financial Scanning
Nikola Corp. is U.S.-based manufacturer and seller of battery and hydrogen-electric heavy-duty trucks. It is based in Phoenix, Arizona, and was founded in 2014. The company’s shareholders rejected the proposal of issuing more stock shares last week. Other decisions will be taken in the upcoming meeting.
Additionally, a hydrogen fuel cell company Plug Power is partnering with Nikola to develop hydrogen-powered vehicles. The collaboration will focus on hydrogen production and fueling infrastructure to power the future fleet of hydrogen-fuel semi-trucks. If the goal is achieved, it could be very beneficial for the company.
Another reason for the surge is the May CPI data, which has assured investors that the inflation beast is finally being tamed. However, it will take some time for the beast to be completely docile. Rising inflation has been problematic for the companies which went public via SPACs. Lowering the inflation rate may be the catalyst in hiking the EV manufacturer’s share price.
At press time, NKLA’s share price is $1.0800 with a swell of 18.16%, while previous close and open were at $0.9140, and $1.0500, respectively. The 52-week change comes with a drop of 79.43%. With an average volume of 24.69 million shares, the company boasts a market cap of $774.13 million.
Analysts provided a 2.17 rating for HOLD and placed the price target at $5.38 with an upside of 347.7%. Furthermore, the short interest seems bearish, with 16.26% of shares sold short.
The last earnings were reported on May 9, 2023. The reported revenue of $11.117 million failed to beat the estimated $12.884 million. The surprise came at a shortage of $1.767 million, which is equivalent to 13.72% less than the estimated amount.
However, concerning the March 2023 data, the quarterly hike in revenue is reported to be 489.14% which is equivalent to $11.12 Million, while the trailing twelve-month (ttm) revenue is $60.05 Million. The revenue per share is $0.13, while the quarterly revenue growth year-over-year (YoY) comes with a rise of 489.10%.
Operating expenses dropped by 22.15% to $118.14 Million, while the operating margin fell face down by 1,246.20%. Gross profit is negative $104.76 Million. Basic earnings per share are minus $2.23 (ttm). Total cash in hand at the end of the most recent quarter (mrq) is $136 Million, with a total debt of $348.63 Million.
Nikola Corp. (NKLA Stock) – Candle Exploration
Steep descending EMA followed the downtrend of NKLA share price action for a long time. The sharp rise in the RSI value hints at the shares entering the overbought range. However, if the rally continues, the price could cross R1. Additionally, for some time, traders may witness a consolidation phase between R1 and support.
If the price crosses R1, it must finally face crucial resistance to be out of the red zone. A southbound movement below the support is unlikely, but the scenario spells trouble for Nikola Corporation if it occurs.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
