Why Lucid Motors Stock Sank Today
A company executive also announced that plans to launch a new, midsize SUV next year are on track. Yet after a brief rise higher, Lucid stock is plunging today. Lucid shares closed the day's trading lower by 5%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Lucid stock is down about 25% year to date with today's drop. News from the company yesterday was positive, though. Lucid is diversifying its product lineup with its new luxury Gravity SUV. It began accepting registrations last year, but now has officially opened the order book on the high-end SUV that starts at $94,900.
Another version with a starting price of under $80,000 will be available to order later this year. Maybe more important for Lucid investors are plans to launch a new, lower-priced, midsize SUV next year. Lucid senior vice president Derek Jenkins said the company is on track for that 2026 launch. That vehicle is set to start at a $50,000 price point, and could vault the company into a much larger market of consumers.
Yet the stock plunged today as investors see tariffs and potentially negative economic consequences as a reason to sell technology names. Lucid addressed the tariff issue yesterday, too. Interim CEO Marc Winterhoff told Reuters that the company has no plans to raise prices, but it does have agreements in place with battery cell and graphite suppliers for domestic production to avoid U.S. tariffs in the near future.
That wasn't enough for investors to spare Lucid shares from today's tech sell-off, though. The Nasdaq Composite (NASDAQINDEX: ^IXIC) was down as much as 4% today, closing down 3%, and dropped to 20% below its record high set late last year.
While Lucid gave long-term investors some positive news yesterday, it will be a bumpy ride for shareholders as long as tech stocks struggle.
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $526,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $687,684!*
Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of April 14, 2025
Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Lucid Motors Stock Sank Today was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Sprouts (NASDAQ:SFM) Exceeds Q2 Expectations
Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 17.3% year on year to $2.22 billion. Its GAAP profit of $1.35 per share was 9.4% above analysts' consensus estimates. Is now the time to buy Sprouts? Find out in our full research report. Sprouts (SFM) Q2 CY2025 Highlights: Revenue: $2.22 billion vs analyst estimates of $2.17 billion (17.3% year-on-year growth, 2.3% beat) EPS (GAAP): $1.35 vs analyst estimates of $1.23 (9.4% beat) Adjusted EBITDA: $217.8 million vs analyst estimates of $200.5 million (9.8% margin, 8.6% beat) EPS (GAAP) guidance for the full year is $5.26 at the midpoint, beating analyst estimates by 3.3% Operating Margin: 8.1%, up from 6.7% in the same quarter last year Free Cash Flow Margin: 2.3%, similar to the same quarter last year Same-Store Sales rose 10.2% year on year (6.7% in the same quarter last year) Market Capitalization: $15.36 billion "We are pleased with our excellent results for the second quarter," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. Company Overview Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $8.40 billion in revenue over the past 12 months, Sprouts is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Sprouts grew its sales at a mediocre 7.5% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts), but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Sprouts reported year-on-year revenue growth of 17.3%, and its $2.22 billion of revenue exceeded Wall Street's estimates by 2.3%. Looking ahead, sell-side analysts expect revenue to grow 10.2% over the next 12 months, an acceleration versus the last six years. This projection is eye-popping and indicates its newer products will spur better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Store Performance Number of Stores A retailer's store count influences how much it can sell and how quickly revenue can grow. Over the last two years, Sprouts opened new stores at a rapid clip by averaging 6.4% annual growth, among the fastest in the consumer retail sector. This gives it a chance to become a large, scaled business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Sprouts reports its store count intermittently, so some data points are missing in the chart below. Same-Store Sales A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. Sprouts has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 7.5%. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Sprouts multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Sprouts's same-store sales rose 10.2% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. Key Takeaways from Sprouts's Q2 Results We were impressed by how significantly Sprouts blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.5% to $162.01 immediately following the results. Sprouts may have had a good quarter, but does that mean you should invest right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
8 minutes ago
- Yahoo
FormFactor (NASDAQ:FORM) Surprises With Q2 Sales But Stock Drops 16%
Semiconductor testing company FormFactor (NASDAQ:FORM) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales were flat year on year at $195.8 million. The company expects next quarter's revenue to be around $200 million, close to analysts' estimates. Its non-GAAP profit of $0.27 per share was 10% below analysts' consensus estimates. Is now the time to buy FormFactor? Find out in our full research report. FormFactor (FORM) Q2 CY2025 Highlights: Revenue: $195.8 million vs analyst estimates of $189.4 million (flat year on year, 3.4% beat) Adjusted EPS: $0.27 vs analyst expectations of $0.30 (10% miss) Adjusted Operating Income: $22.85 million vs analyst estimates of $23.94 million (11.7% margin, 4.6% miss) Revenue Guidance for Q3 CY2025 is $200 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q3 CY2025 is $0.25 at the midpoint, below analyst estimates of $0.33 Operating Margin: 6.3%, down from 9% in the same quarter last year Free Cash Flow was -$47.1 million, down from $13.48 million in the same quarter last year Inventory Days Outstanding: 82, down from 94 in the previous quarter Market Capitalization: $2.67 billion 'FormFactor reported sequentially stronger second-quarter revenue that exceeded the high end of our outlook range, due to higher-than-anticipated growth in our probe-card business,' said Mike Slessor, CEO of FormFactor, Company Overview With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, FormFactor's sales grew at a sluggish 3.7% compounded annual growth rate over the last five years. This was below our standard for the semiconductor sector and is a rough starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. FormFactor's annualized revenue growth of 6.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, FormFactor's $195.8 million of revenue was flat year on year but beat Wall Street's estimates by 3.4%. Despite the beat, this was its third consecutive quarter of decelerating growth, indicating a potential cyclical downturn. Company management is currently guiding for a 3.8% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Product Demand & Outstanding Inventory Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, FormFactor's DIO came in at 82, which is 13 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup. Key Takeaways from FormFactor's Q2 Results We were impressed by FormFactor's strong improvement in inventory levels. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its EPS missed and its adjusted operating income fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 16% to $28.91 immediately following the results. FormFactor didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 minutes ago
- Yahoo
TTM Technologies (NASDAQ:TTMI) Reports Bullish Q2, Provides Optimistic Revenue Guidance for Next Quarter
PCB manufacturing company TTM Technologies (NASDAQ:TTMI) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 20.7% year on year to $730.6 million. On top of that, next quarter's revenue guidance ($710 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its non-GAAP profit of $0.58 per share was 11% above analysts' consensus estimates. Is now the time to buy TTM Technologies? Find out in our full research report. TTM Technologies (TTMI) Q2 CY2025 Highlights: Revenue: $730.6 million vs analyst estimates of $670.1 million (20.7% year-on-year growth, 9% beat) Adjusted EPS: $0.58 vs analyst estimates of $0.52 (11% beat) Adjusted EBITDA: $109.7 million vs analyst estimates of $99.01 million (15% margin, 10.8% beat) Revenue Guidance for Q3 CY2025 is $710 million at the midpoint, above analyst estimates of $672.5 million Adjusted EPS guidance for Q3 CY2025 is $0.60 at the midpoint, above analyst estimates of $0.54 Operating Margin: 8.5%, up from 6.4% in the same quarter last year Free Cash Flow Margin: 5.1%, similar to the same quarter last year Market Capitalization: $4.93 billion 'We delivered a strong quarter with revenues and non-GAAP EPS above the high end of the guided range with non-GAAP EPS at a quarterly record high. Revenues grew 21% year on year due to demand strength in our Aerospace and Defense, Medical, Industrial and Instrumentation, Data Center Computing, and Networking end markets, with the increased demand in the latter two being driven by the requirements of generative AI,' said Tom Edman, CEO of TTM. Company Overview As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. With $2.65 billion in revenue over the past 12 months, TTM Technologies is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, TTM Technologies grew its sales at a mediocre 4.4% compounded annual growth rate over the last five years. This shows it couldn't generate demand in any major way and is a tough starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. TTM Technologies's annualized revenue growth of 5.5% over the last two years is above its five-year trend, suggesting some bright spots. This quarter, TTM Technologies reported robust year-on-year revenue growth of 20.7%, and its $730.6 million of revenue topped Wall Street estimates by 9%. Company management is currently guiding for a 15.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. TTM Technologies was profitable over the last five years but held back by its large cost base. Its average operating margin of 5% was weak for a business services business. On the plus side, TTM Technologies's operating margin rose by 4.2 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, TTM Technologies generated an operating margin profit margin of 8.5%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. TTM Technologies's EPS grew at a solid 10.5% compounded annual growth rate over the last five years, higher than its 4.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of TTM Technologies's earnings can give us a better understanding of its performance. As we mentioned earlier, TTM Technologies's operating margin expanded by 4.2 percentage points over the last five years. On top of that, its share count shrank by 2.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For TTM Technologies, its two-year annual EPS growth of 19.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, TTM Technologies reported adjusted EPS at $0.58, up from $0.39 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects TTM Technologies's full-year EPS of $2.09 to grow 7.2%. Key Takeaways from TTM Technologies's Q2 Results We were impressed by how significantly TTM Technologies blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also excited its revenue and EPS guidance for next quarter outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 1.3% to $49.39 immediately following the results. TTM Technologies may have had a good quarter, but does that mean you should invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
