Newly-Listed Zoomcar Is Down Over 7% - What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
Zoomcar Holdings, Inc. (NASDAQ:ZCAR) shares dropped over 7% in premarket trading after announcing a partnership with SPARKCARS to add over 1,000 electric vehicles to its platform in India. Despite a 19% decrease in net revenue to $2.4 million in the third quarter, Zoomcar projects a significant revenue increase for the calendar year ending December 31, 2024, and expects to achieve a positive adjusted EBITDA run rate.
February 20, 2024 | 12:27 pm
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Zoomcar's stock price fell over 7% in premarket trading following the announcement of a partnership with SPARKCARS and a 19% decrease in Q3 net revenue. However, the company forecasts significant revenue growth and a positive EBITDA run rate by the end of 2024.
The short-term impact on ZCAR's stock price is negative due to the recent drop in share price following the partnership announcement and the reported decrease in Q3 net revenue. However, the company's optimistic revenue projections and expected positive EBITDA run rate by the end of 2024 could mitigate this impact over time.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100