Robert Way
Thesis
We updated investors in our previous article on XPeng Inc. (NYSE:XPEV) to be cautious, as we gleaned a significant price top as the market led investors into XPEV's June highs.
The market has since digested that momentum surge from
The Market Doesn't Think XPeng Will Win The Race
Summary
- XPeng investors have endured one of the most torrid periods in 2022, as XPEV lost more than 75% of its value since our caution in June.
- XPeng has also been caught in the broad market de-rating in Chinese equities, as investors reacted negatively to Chinese President Xi Jinping's strategies for his unprecedented third term.
- We discuss why investors need to reconsider their thesis in XPeng, as the market has likely "shoved" it aside in anticipation of more intense competitive headwinds.
- We explain why buying the dips now is not advisable, despite the steep selloff. Therefore, we urge investors to continue watching XPEV's action from the sidelines.
- I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.
He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.
He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.
He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.
He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.
The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NIO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.