LI stock price was experiencing increased activity that already affected its trading price to follow a downward trend. Due to this recent market trend, LI stock seems stuck amid its 20 and 50-day EMA.
It must be noted that earlier this month, LI Auto Inc. released its recent second quarter (Q2) 2023 report. Near the recent quarter result, LI share price was soaring upside whereas its trading price was near $45.00. The RSI was further supporting its trading price as it was also in the overbought zone.
However, after reporting the Q2 2023 result, LI stock price started showing a downward trend. Due to this trend, LI shares now reached slightly down from their trading price of $38.00. Notably, dropped trading volume activity was also noted in after-quarter results.
LI Stock Price Analysis
On August 24, 2023, Thursday, LI stock noted its closing at $38.83, lost $0.11 while showing a 0.28% price decline. The bearish market trend took LI stock price down from its 20-day EMA in the recent trading session.
The pre-market price of LI stock also seems to follow a bearish market trend. As the below chart shows, the price is nearing its 50-day EMA. If this downtrend stays during the intraday trading session, then LI share may reach a 50-day EMA.
The dropping downtrend also pushed the RSI of LI stock to fall near its oversold zone. However, it would require potential bears’ activity during the upcoming trading session. On the other hand, in the past 6 months, LI share has shown an upside market trend with over a 66% price surge.
Recent Quarter Update of Li Auto Inc.
Li Auto Inc. (NASDAQ: LI), a Chinese electric vehicle manufacturer, has a market cap of nearly $39.39 Billion. In the recent Q2 2023, its net income was $326.66 Million while LI price-to-sales ratio was 3.85. Li Auto Inc. has an Enterprise Value to EBITDA ratio of 613.98.
According to its Q2 2023 report, LI earnings per share (EPS) is $0.36 whereas the estimation was $0.24 which accounts for a 46.79% surprise. The reported revenue further amounts to $3.95 Billion despite the estimated figure of $3.75 Billion.
For the upcoming quarter, the estimated EPS is $0.35, and the revenue is expected to reach $4.54 Billion. Additionally, in 2022, the revenue of Li Auto Inc. amounted to $6.56 Billion. Most of which, almost $6.55 Billion came from its highest performing source at the moment, “vehicle”.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/25/will-li-stock-price-reach-its-50-day-ema-near-weekend/