Electric Scooter Company Niu Tech Stock Falls After Q1 Print, Read The Details
Portfolio Pulse from Anusuya Lahiri
Niu Technologies (NASDAQ:NIU) reported a 21% revenue growth in Q1 2024, driven by a 36.8% increase in e-scooter sales volume. However, the company faced a decline in gross margin and earnings per ADS of $(0.10), leading to a stock price drop. Niu expects Q2 revenues to grow by 10%-20% Y/Y. The stock has lost over 46% in the last 12 months. Investors can gain exposure via Vanguard FTSE Emerging Markets ETF (NYSE:VWO) and Vanguard Total International Stock ETF (NASDAQ:VXUS).
May 20, 2024 | 10:52 am
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NEGATIVE IMPACT
Niu Technologies reported a 21% revenue growth in Q1 2024, but faced a decline in gross margin and earnings per ADS of $(0.10), leading to a stock price drop. The company expects Q2 revenues to grow by 10%-20% Y/Y.
Despite the revenue growth, the decline in gross margin and earnings per ADS led to a negative market reaction. The stock price dropped, reflecting investor concerns about profitability.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Vanguard FTSE Emerging Markets ETF (NYSE:VWO) provides exposure to Niu Technologies, which reported mixed Q1 2024 results. The ETF may see minor fluctuations due to NIU's performance.
VWO holds a diversified portfolio, and while NIU's performance may cause minor fluctuations, the overall impact on the ETF is expected to be limited.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Vanguard Total International Stock ETF (NASDAQ:VXUS) includes Niu Technologies, which reported mixed Q1 2024 results. The ETF may experience minor fluctuations due to NIU's performance.
VXUS holds a broad international portfolio, and while NIU's performance may cause minor fluctuations, the overall impact on the ETF is expected to be limited.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30