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Is XPeng Stock a Buy Now?

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 4/7/2025, 11:38 am ET 6 min read
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In this article

  • XPEV+9.57%
    XPEV - NYSEXPeng Inc. American depositary shares each representing two Class A
    $20.90+1.83 (+9.57%)
    Volume:  7.20M
    Float:  729.95M
    $19.92Day Low/High$21.05

The development of self-driving tech by XPeng Inc. adds optimism amid -9.73% stock dip.

Highlights From the Latest Market News

  • Analyst firm Daiwa has downgraded XPeng to Hold from Buy, citing concerns over stock valuation after a 108% year-to-date share price rally. The price target was adjusted to $24 from a previous $8.90.
  • XPeng recently reported fourth-quarter results that fell short of Wall Street’s predictions. However, a strong forecast for Q1 2025 reveals expectations for vehicle deliveries to grow over 300% year-on-year.
  • CFRA maintains a strong sell opinion on XPeng’s shares despite improved financial results, including a 23% increase in Q4 2024 revenues to CNY16B.
  • Ongoing mass production of XPeng’s Turing chip might contribute to a drag on the company’s overall gross margin or hinder progress in improving it.

Candlestick Chart

Live Update At 10:38:13 EST: On Monday, April 07, 2025 XPeng Inc. stock [NYSE: XPEV] is trending down by -9.73%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recent Earnings and Financial Metrics

As traders navigate the volatile world of penny stocks, they often experience the fear of missing out, commonly referred to as FOMO. This emotional response can lead to hasty decisions and errors in judgment. However, it’s crucial to remember, as millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This mindset is key for maintaining discipline and patience in trading, ensuring that one doesn’t get swept up in the frenzy and can spot better opportunities with a clearer perspective.

Summing up the latest financial scenario, XPeng released its Q4 2024 earnings report, which displayed revenues growing significantly, yet still missed Wall Street’s estimates. Impressively, their quarter was marked by a 23% hike in revenue, reaching beyond CNY16B. Even more striking is the vivid hope cast with the Q1 2025 forecast. Vehicle deliveries are expected to explode, growing over 300% compared to the same quarter last year.

This soaring ambition is dampened, however, by a net loss narrowing only slightly to CNY1.33B from CNY1.35B. The financial juggling performed by XPeng might not be dazzling enough to silence those worried about stretched stock valuations. The CFRA holds its ‘strong sell’ label, pointing at the tumultuous waters that lie ahead for XPeng with their strong foreboding tone.

Metrics from key ratios provide lukewarm comfort too. Debt to equity metrics remain elusive, but a concerning leverage ratio of 2.3 has surfaced. Meanwhile, valuation measures show a price to book ratio of 3.66. The intriguing stat here rests in the enigmatic return on assets at -1.52, a puzzle that raises eyebrows.

The electrifying news surrounding the mass production of XPeng’s Turing chip is double-edged; boosting innovation yet potentially dragging on gross margin improvements. It’s akin to a bittersweet symphony in the unfolding drama that is XPeng’s financial narrative.

Impact of the News on Stock Movement

The bright optimism sewn into XPeng’s vehicle delivery forecast strikes an invigorating chord. Imagine the streets alight with XPeng’s vehicles quadrupling in numbers. The vision propels a spirit of potential unparalleled growth. Yet, there’s an unspoken anxiety that lingers, clouding over as analysts measure the rocketing stock prices against projected value.

Daiwa’s stern downgrade drops from the sky like an anvil, suggesting caution. Trade carefully, it warns, as it slashes the price target and subtly nudges investors to Hold off from making hasty purchases. The once fervent ‘Buy’ recommendation now dims slightly.

Financial opinions, diverging as dramatically as stormy waves, form an unstable cacophony. Insiders mull if XPeng’s sky-high valuation is deserved. Like a flame to a moth, one’s speculation may very well attract swift traders who flirt dangerously close to potential bubbles.

More Breaking News

Summary and Insights

Revelations surrounding XPeng’s latest news take center stage in the theater of electric vehicle markets. The attention gravitates towards their encouraging Q1 2025 forecast, where hope laces the horizon. Nonetheless, analyst ratings glue eyes to the intricate dance of valuation and caution, imploring observers to interpret the swirl of highs and lows.

This wave of anticipation captures hopeful souls in its embrace, yet skepticism casts a discerning light. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” Whether unbridled growth or cautious restraint marks XPeng’s trajectory, one thing is certain: an electric storm brews, compelling onlookers to assess the changing winds before setting sail on their trading voyage through XPeng’s evolving landscape.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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In this article (YTD Performance)

  • XPEV+80.64%
    XPEV - NYSEXPeng Inc. American depositary shares each representing two Class A
    $20.90+1.83 (+9.57%)
    Volume:  7.20M
    Float:  729.95M
    $19.92Day Low/High$21.05

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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