Hot Stocks: Chinese EV stocks fall; CRWD rises on earnings; JD, ASAN plunge; EPIX hits high

Mar. 10, 2022 6:02 PM, Inc. (JD)NIO, XPEV, LI, ASAN, CRWD, EBIXBy: Brian Stewart, SA News Editor4 Comments

Trading Charts on a Display

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Stocks dipped on Thursday, giving back a portion of Wednesday's sharp gains amid worries about inflation and ongoing fighting in Ukraine. Chinese electric vehicle stocks were among those caught in the downdraft, with Nio (NYSE:NIO), XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) all posting notable losses.

This slide was part of a general decline in China-related names. (NASDAQ:JD) was among the leaders to the downside, posting a double-digit percentage loss in the wake of its quarterly results. The stock also reached a 52-week low during the session.

Elsewhere in the market, Asana (NYSE:ASAN) was another major decliner. The stock lost more than a fifth of its value following the release of earnings news.

Looking to the upside, CrowdStrike (NASDAQ:CRWD) received substantial buying interest after the announcement of its financial figures. Ebix (NASDAQ:EBIX) also posted a notable advance, boosted by news of a planned IPO by its Indian subsidiary.

Sector In Focus

Geopolitical concerns and trepidation about the regulatory climate surrounding Chinese stocks conspired to push China-based electric-vehicle shares lower. Nio (NIO) led the decline, amid news that its stock has begun trading on the Hong Kong stock exchange.

NIO dropped 12% during the session, basically reversing a 12% rally that took place the previous day, when broad buying in the EV sector drove the stock higher.

Hope fizzled that the Russian assault on Ukraine would come to a quick negotiated end. Many stocks, like those in the EV sector, that got swept up in Wednesday's enthusiasm suffered a step back in Thursday's trading.

Along with NIO, XPeng (XPEV) also suffered a decline, falling by about 9%. Li Auto (LI) retreated almost 6%.

Standout Gainer

Strong quarterly results spurred buying in shares of cybersecurity firm CrowdStrike (CRWD). Thanks to the earnings update, the stock jumped nearly 13% on the session.

CRWD posted a Q4 profit that exceeded analysts' projections by more than 50%. At the same time, revenues rocketed 63% to $431M, also surpassing estimates.

Along with the Street-beating results, the firm provided an upbeat forecast for the current quarter. CRWD projected a profit between $0.22 and $0.24 per share, above the $0.18 per share that analysts had targeted.

The company's revenue projection likewise beat Wall Street's consensus. CRWD forecast a top-line figure between $458.9M and $465.4M. Analysts had predicted a number just below $441M.

CRWD advanced $21.23 on the session to finish at $191.02. The rally continued a volatile month for the stock, which has been bouncing around in a broad range since late January, hovering near a 52-week low of $150.02.

Shares had reached a 52-week high of $298.48 in early November but fell sharply in the tail end of 2021 and early 2022.

Standout Loser

Despite quarterly results that nominally beat expectations, Asana (ASAN) suffered a massive sell-off, as investors worried about slowing growth and tighter margins. Weighed down by the financial figures, shares of the productivity software provider dropped 22% on the session.

For Q4, ASAN reported a narrower-than-expected loss, with revenue that jumped nearly 64% to almost $112M.

While it exceeded projections with its headline numbers, the company predicted a Q1 loss that was wider than Wall Street's current consensus estimate. Meanwhile, the firm's revenue growth projection for the current quarter came in between 49% and 51% -- a step down from the pace seen in Q4.

ASAN retreated $10.80 on the session to end at $38.01. With the slide, shares reached their lowest level since June of last year.

The stock has come off a 52-week high of $145.79 set in late 2021. ASAN has given up about 74% of its value since setting that peak.

Notable New High

Ebix (EBIX) rallied 31% on news that the company's Indian subsidiary has filed for an IPO in India. Bolstered by the news, the stock jumped to a new 52-week high.

The application software firm revealed that its EbixCash Limited unit has filed for an initial public offering valued at $787M. The firm said $350M of these funds will be used to purchase outstanding compulsorily convertible debentures -- a move that will reduce EBIX's outstanding debt.

EBIX finished Thursday's trading at $41.90, a gain of $10.01 on the day. The rally took the stock above resistance to set a fresh intraday 52-week high of $44.42.

Notable New Low

Concerns about slowing growth and renewed regulatory pressure sent (JD) reeling, with the stock plunging 16% and setting a new 52-week low.

The Chinese e-commerce giant topped expectations with its non-GAAP earnings. However, the firm's revenue growth of 23% merely matched expectations and represented a slower pace of growth than the 26% seen in the previous quarter.

Along with the quarterly results, the Chinese internet sector suffered general selling as a result of stepped-up U.S. regulatory scrutiny. The U.S. Securities and Exchange Commission named five China-based firms that could face delisting for falling short of U.S. accounting regulations.

JD was not one of the companies listed, but the overall atmosphere of tightened oversight and delisting risk weighed on the group.

As a result, JD dropped early in the session, falling to an intraday 52-week low of $50.60. The stock cut its losses by the close but still ended lower by $9.88 to close at $52.52.

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