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On Tuesday, BofA Securities analysts revised their price target for Nio stock to $4.30 from $4.90, while maintaining a Neutral rating. This adjustment follows Nio’s announcement of its first-quarter 2025 financial results and subsequent conference call. According to InvestingPro data, NIO’s stock, currently trading at $3.56, appears undervalued based on its Fair Value analysis.
Nio reported a total revenue of RMB12 billion for the first quarter, marking a 22% increase year-over-year but a 39% decrease quarter-over-quarter. The year-over-year growth was attributed to a 40% rise in vehicle sales volume, despite a 15% decrease in average selling price due to changes in product mix and the clearance of older model versions. InvestingPro data shows the company maintains an impressive 18.2% revenue growth over the last twelve months, with a current market capitalization of $7.89 billion.
The company’s gross profit margin improved by 2.7 percentage points year-over-year to 7.6%, although it fell short of the analysts’ expectation of 8.1%. The operating expenses to sales ratio increased to 61.0%, reflecting a rise of 1.6 percentage points year-over-year and 18.6 percentage points quarter-over-quarter. InvestingPro analysis highlights two key concerns: weak gross profit margins and rapid cash burn. Subscribers can access 10 additional ProTips and comprehensive financial metrics for deeper insights.
Nio’s operational loss for the quarter was RMB6.4 billion, exceeding the analysts’ forecast. The non-GAAP net loss stood at RMB6.3 billion, a 28% increase year-over-year but a 4% decrease quarter-over-quarter, missing the analysts’ estimate of RMB5.6 billion. The company remains unprofitable over the last twelve months, with analysts not expecting profitability this year, according to InvestingPro data.
In other recent news, NIO Inc (NYSE:NIO). reported its first-quarter revenue of RMB 12.0 billion and earnings per share of RMB (3.29), both falling short of consensus estimates. The company projects second-quarter revenue between RMB 19.5-20.1 billion, indicating a potential 62-67% increase quarter-over-quarter. NIO also anticipates delivering 73,500 units in the upcoming quarter, surpassing the consensus estimate of 69,900 units. Analysts at Mizuho (NYSE:MFG) adjusted their outlook by lowering the price target to $3.50 while maintaining a Neutral rating due to strong competition in China. Conversely, Morgan Stanley (NYSE:MS) reiterated an Overweight rating with a price target of $5.90, emphasizing a potential recovery in sales and cash flow improvements. NIO’s vehicle deliveries in April 2025 showed a 53% year-on-year growth with 23,900 vehicles delivered. Despite a 32% month-on-month drop in NIO brand volumes, the ONVO brand saw a 43% increase, and the Firefly model sold 3,700 units in its first month. The company aims to improve gross margins with new model launches and targets breakeven by the fourth quarter of 2025.
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