Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

1 Stock To Buy, 1 To Dump When Markets Open: Nio, Las Vegas Sands

ca.investing.com/analysis/1-stock-to-buy-1-to-dump-when-markets-open-nio-las-vegas-sands-200495996
1 Stock To Buy, 1 To Dump When Markets Open: Nio, Las Vegas Sands
By Jesse Cohen/Investing.com   |  Dec 19, 2021 08:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Stocks on Wall Street sold off on Friday, with the benchmark S&P 500 index closing at its lowest level in nearly two weeks amid worries about tighter Federal Reserve monetary policy and the ongoing coronavirus health crisis.

SPX Daily Chart
SPX Daily Chart

Investors should expect more volatility in the holiday-shortened Christmas week ahead as they monitor fresh developments impacting the markets resulting from the Fed's decision to accelerate tapering, and COVID fronts.

There is also key economic data on the agenda, including the latest report on personal consumption expenditures (PCE) inflation, as well as earnings from notable companies such as Nike (NYSE:NKE), Micron Technology (NASDAQ:MU), Rite Aid (NYSE:RAD), and BlackBerry (NYSE:BB).

Regardless of which direction the market goes, below we highlight one stock likely to be in demand and another which could see further downside. 

Remember though, our timeframe is just for the upcoming week.

Stock To Buy: Nio

Nio (NYSE:NIO)—which saw its shares slump to a 14-month low on Friday—will be in focus this week after the electric vehicle (EV) company made a flurry of positive announcements at its ‘Nio Day 2021’ event held over the weekend.

The EV startup unveiled its newest and most affordable electric vehicle, dubbed the ET5, at its annual event which took place at the Olympic Sports Center in Suzhou, China on Saturday.

The mid-sized EV sedan is the fifth mass-produced model from the Chinese electric carmaker to come to market and is widely viewed as a potential competitor to the Tesla (NASDAQ:TSLA) Model 3, the Xpeng (NYSE:XPEV) P7 and P5, the BYD (OTC:BYDDY) Han, as well as BMW's (OTC:BMWYY) 3 series, and Audi's (OTC:VWAGY) A6.

Nio’s ET5, which has a range of 341 miles (550 kilometers) using its standard battery pack, is priced at around $51,450 (¥328,000) before government subsidies, and $40,470 (¥258,000) with a battery subscription plan. ET5 deliveries will begin in September 2022.

Founder and chairman William Li also said the EV maker will begin deliveries of the upscale ET7 sedan model, unveiled at ‘Nio Day 2020,’ on Mar. 28, 2022. The ET7 has a range of up to 620 miles (1,000 kilometers), rivaling the Lucid (NASDAQ:LCID) Air and Tesla Model S, which have a range of up to 520 miles and 412 miles, respectively.

In addition, the Chinese electric car company revealed that it plans to be selling its electric vehicles in 25 countries by 2025, including Norway, Germany, Sweden, and Denmark.

NIO Daily Chart
NIO Daily Chart

NIO stock sank to its lowest level since October 2020 at $28.02 on Friday before recovering to end the session at $30.00, earning the Shanghai, China-based electric vehicle company a market cap of $47.7 billion.

After scoring a gain of more than 1,100% in 2020, Nio shares are down 38% in 2021, and 55% off their record high of 66.99 hit on Jan. 11 amid an aggressive reset in valuations throughout the entire EV sector.

Stock To Dump: Las Vegas Sands 

Las Vegas Sands (NYSE:LVS) has seen its shares steadily collapse to new lows in recent sessions. And the coming week is expected to be just as dismal due to the negative impact of several factors plaguing the casino giant.

LVS stock—which has fallen nearly 8% in the last month and 40% year-to-date—closed Friday’s session at $35.44, not far from its recent 21-month low of $33.75 touched on Dec. 2. It now stands almost 47% below its post-pandemic high of $66.77 reached on Mar. 3.

At current levels, Las Vegas Sands has a market cap of about $27.1 billion, making it one of the world’s largest casino and resort operators.

LVS Daily Chart
LVS Daily Chart

Investor sentiment on the already hard-hit name took a blow as China’s ruling Communist Party intensified its crackdown on the country’s Macau casino district, which is the world’s biggest gambling hub. Las Vegas Sands sold its Las Vegas properties for $6.25 billion earlier this year to focus even more on its operations in Asia, where it had been running junket operations.

Macau's Gaming Inspection and Coordination Bureau recently ordered the city’s embattled casino operators, who often bring in high-rollers and big-spending clients from mainland China, to shut down their VIP rooms and stop offering credit for gambling loans. Las Vegas Sands is set to end its junket operations by year-end.

The growing scrutiny is part of a campaign launched by Chinese authorities to rein in the country’s wealthy gambling tycoons amid money-laundering allegations.

To make matters worse, COVID infections are once again on the rise in China and Hong Kong, fueled by the spread of the highly transmissible Omicron variant, prompting several cities in the country to announce new travel restrictions and lockdowns.

Taking that into account, shares of LVS could fall further in the coming days.

1 Stock To Buy, 1 To Dump When Markets Open: Nio, Las Vegas Sands
 

Related Articles

1 Stock To Buy, 1 To Dump When Markets Open: Nio, Las Vegas Sands

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email