What's Going On With Nikola Stock?
Portfolio Pulse from Henry Khederian
Nikola Corp (NASDAQ:NKLA) shares dropped 8.1% to $0.77 amid a broader market downturn influenced by rising Treasury yields and profit-taking after December's gains. Upcoming economic reports and Federal Reserve speeches are adding to market uncertainties. Growth stocks like Nikola are impacted by higher interest rates, which increase the discount rate and lower the present value of future cash flows. NKLA's 52-week range is $0.52 to $3.71.
January 03, 2024 | 7:11 pm
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Nikola Corp's stock experienced an 8.1% decline, likely due to broader market trends and concerns over rising interest rates which affect the valuation of growth stocks.
Nikola Corp's stock decline is directly related to the broader market downturn and the rising Treasury yields, which are particularly detrimental to the valuation of growth stocks like Nikola. The anticipation of economic reports and Federal Reserve actions adds to the uncertainty, likely causing a negative short-term impact on NKLA's stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100