Why Shares of Pony AI Blasted 70% Higher This Week
Since last Friday, shares of Pony AI (NASDAQ: PONY), a China-based autonomous vehicle company, have blasted over 70% higher, as of 1:38 p.m. ET Thursday. The company recently rolled out its seventh-generation autonomous driving system at the auto show in Shanghai.
Investors are clearly impressed by Pony AI's robotaxis, which are backed by Toyota. Management claims Pony's vehicles are 20% to 30% cheaper to make than those built by the U.S.-based Waymo. Pony also said it had cut its production costs on the vehicles by 70% from its previous generation, and that its self-driving systems are very safe.
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 »
"The safety requirements for [Level 4] systems inherently surpass those of human drivers, which we believe is unattainable through merely imitating human behavior," Pony AI's chief technology officer, Tiancheng Lou, said in a statement. "Our proprietary PonyWorld generates realistic scenarios, conducts high-fidelity simulations, and establishes behavior evaluation benchmarks to make our autonomous decision-making go beyond human capability. Building on this advanced technology, our seventh-generation autonomous driving system not only makes [Level 4] autonomous driving possible but also ensures scalability at a manageable cost."
CEO James Peng told the South China Morning Post that the new autonomous systems are more integrated than those made by Waymo and benefit from China's "... mature supply chain and ecosystem ..." Peng also said that mass production of the new vehicles will begin this year and scale up to 50,000 units by 2028.
Pony AI generated about $75 million of revenue in 2024, while also turning in a loss of about $275 million. With a $2.5 billion market cap, that means it trades at a massive valuation.
Obviously, investors are focused on the future, and the opportunity could be enormous. But early-stage companies like this can be very volatile, so if you are interested in investing, I would start with a small position and gradually accumulate shares as the company hits more milestones and reaches financial maturity.
Before you buy stock in Pony Ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pony Ai 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 $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $629,519!*
Now, it's worth noting Stock Advisor's total average return is 829% — a market-crushing outperformance compared to 155% 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 21, 2025
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Shares of Pony AI Blasted 70% Higher This Week 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
9 minutes ago
- Yahoo
Nvidia (NVDA) Extends $1 Trillion Rally as AI Optimism Grows
Nvidia (NVDA, Financials) surged over 45% from its April low, adding $1 trillion in value and closing in on Microsoft's (MSFT, Financials) spot as the world's most valuable company, according to Bloomberg. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Despite the sharp rally, Nvidia trades at about 29 times projected earnings over the next 12 months below its 10-year average of 34 times. The stock's price-to-earnings-to-growth ratio is under 0.9, the lowest among major tech peers, signaling potential undervaluation. Bloomberg data shows analysts remain bullish, with 69 of 78 rating the stock a buy and only one issuing a sell. The average price target implies a further 24% upside. Investors have shaken off early-year concerns tied to U.S.-China tensions and semiconductor sales restrictions. Bloomberg reported Nvidia lost $2.5 billion in Q1 sales from a China chip ban and expects an $8 billion hit in Q2, but demand elsewhere appears strong. U.S. tech giants including Microsoft, Amazon (AMZN, Financials), Alphabet (GOOG, Financials) and Meta Meta Platforms (META, Financials) are projected to spend $330 billion on AI infrastructure in 2026, up 6% from 2025, helping sustain Nvidia's growth momentum. Still, trade exposure lingers. China contributed 13% of Nvidia's revenue in Q1. With President Trump's administration threatening broader tech restrictions, Nvidia could face further headwinds. CEO Jensen Huang said no new China-focused products are planned for now, but the company is monitoring the policy environment. Nvidia's relatively low institutional ownership 74% of long-only funds, compared with 91% for Microsoft leaves room for additional buying pressure. Analysts like Samuel Rines of WisdomTree argue Nvidia's earnings multiple could rise into the high 30s or low 40s as AI capex accelerates. Investors will continue to watch for signals from Washington on trade, as well as ongoing data center demand trends. This article first appeared on GuruFocus. 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
Chicago Tribune
10 minutes ago
- Chicago Tribune
Snack Wrap unwrapped: Here's why McDonald's is bringing back a fan favorite on July 10
If McDonald's ever doubted it needed to bring back the Snack Wrap, consider this: Nine years after the fast-food powerhouse discontinued the item in the U.S., customers have continued to order it at drive-thrus. Those customers won't have to leave empty-handed for long. On Tuesday, McDonald's announced that a new version of the Snack Wrap will go on sale July 10. McDonald's invented the Snack Wrap — a tortilla full of chicken, lettuce, shredded cheese and sauce — almost two decades ago to make it easier to eat its chicken on the go. But it was too complicated for its kitchens to prepare, so the burger giant abandoned the Snack Wrap in the U.S. in 2016. The decision devastated fans like Alicia Force, a musician and administrative assistant at a high school in Missouri. Force tried to make Snack Wraps at home and sampled alternatives from Arby's and other restaurants, but nothing was the same. So she started a Facebook group with 86 members urging McDonald's to resurrect the Snack Wrap. Other loyal noshers weighed in too. A petition asking McDonald's to bring back the Snack Wrap has nearly 19,000 signatures. A TikTok video showing a U.S. food reviewer eating Snack Wraps in Ireland — where they're still sold — racked up more than 1.4 million views. It had an impact. McDonald's began teasing a Snack Wrap reappearance earlier this year. 'We listen to our fans, and the Snack Wrap's return is a testament to that,' McDonald's U.S. President Joe Erlinger told The Associated Press. But McDonald's has other reasons for the reboot. The Snack Wrap's lower price point could lure back inflation-weary customers, who have been eating fewer fast-food meals in recent months. The wraps' smaller size and tortilla casing also appeal to the health-conscious. Steve Davis, a mental health counselor in Fort Lauderdale, Florida, used to buy six grilled chicken Snack Wraps at a time and keep them in his fridge as a grab-and-go snack. 'I'm not actually a fast-food fan, but Snack Wraps felt different, like I was eating an actual 'wrap.' I felt like I was being healthier,' Davis said. Snack Wraps will also help McDonald's compete with a growing number of rivals. Popeyes Louisiana Kitchen introduced its own chicken wraps on Monday, while Burger King and Wendy's have sold them since 2023. Even the convenience store chain Wawa sells a chicken wrap. 'There's so much opportunity in the chicken category,' Erlinger said. Fast-food chicken sales are nearly twice the size of beef and are growing more quickly across the globe, Erlinger said. Reviving the Snack Wrap was a years-long process, Erlinger said. First, McDonald's wanted to develop a better fried chicken strip. After several years of testing, the Chicago-based company debuted its peppery McCrispy Strips in early May. McDonald's also had to update its Snack Wrap tools, simplify the preparation process and train workers at its 13,500 U.S. restaurants, Erlinger said. 'With this being one of our most highly anticipated menu items, we knew we had one chance to knock it out of the park. It had to be easy for crew to execute,' Erlinger said. For the U.S. comeback, McDonald's is offering fewer kinds of Snack Wraps to ensure faster service. It used to have both grilled and fried chicken options, but it's only offering fried chicken in the U.S. for now. And the relaunched Snack Wraps will only come in two flavors: Ranch or Spicy. The company used to offer additional sauces like honey mustard and sweet chili. That could disappoint some fans. Force was partial to a Snack Wrap with honey mustard sauce, for example. Davis always got grilled chicken on his Snack Wraps, and he rarely went to McDonald's after they disappeared. McDonald's continues to have a wider range of options in some other markets where Snack Wraps never went away. Canada still offers grilled or fried chicken in its Snack Wraps, for example, as well as chicken, fish and breakfast versions of full-sized wraps. McDonald's wouldn't say if it plans to add more Snack Wrap varieties in the U.S. 'We'll continue listening to our fans when it comes to menu innovations,' the company said. Snack Wraps are returning at a sluggish period for fast-food restaurants. From January through April, U.S. fast-food traffic was down 1% compared to the same period a year ago, said David Portalatin, a senior vice president and industry advisor for food service at market research firm Circana. McDonald's same-store sales – or sales at locations open at least a year – were down 3.6% in the first quarter of the year compared to the same period last year. Its same-store sales grew less than 1% in 2024. Inflation is the main culprit, Portalatin said. In the first quarter of this year, the average check at a U.S. fast-food restaurant was up 41% from the same period in 2019, he said. The higher prices have led many Americans – especially middle- to lower-income families – to eat at home instead of going out. McDonald's has tried to counter that with a limited McValue menu and increased deals. But less expensive options like a Snack Wrap may also help. The company won't say how much the Snack Wrap will cost in the U.S. because prices will vary by location. But Burger King's prices may give a clue. At a Michigan restaurant this week, Burger King charged $2.99 for its Royal Crispy Wrap, the 310-calorie equivalent of a Snack Wrap. Burger King's Royal Crispy Chicken sandwich, with a bun, a larger chicken breast and nearly twice the calories, cost $5.49. Portalatin said snack-sized options from McDonald's and others also reflect Americans' changing dining habits. More people are choosing to eat smaller meals throughout the day instead of having having breakfast, lunch and dinner at their traditional times. 'The consumer doesn't think about things in the neat buckets that we as marketers like to think about them,' Portalatin said. 'We like to say, 'This occasion is lunch and these are lunch foods.' The consumer simply says, 'I'm hungry. What time is it? Where am I?'' That was certainly true for Force, who said she has fond memories of picking up a Snack Wrap after school as a teenager. She's looking forward to making that part of her routine once more. 'Hopefully, they come back and they taste the same, and they don't break my heart again, quite frankly,' she said.
Yahoo
10 minutes ago
- Yahoo
Nicole Richie and Joel Madden Sell $10 Million Beverly Hills Mansion After Hefty Price Cut
Nicole Richie and Joel Madden sold their Beverly Hills mansion on May 30, 2025 for about $10 million The stars' original asking price for the 6,100-square-foot home was $12.95 million Richie and Madden first listed the property in July 2024 just days after Madden's twin brother Benji and his wife, Cameron Diaz, listed theirsNicole Richie and Joel Madden have sold their Beverly Hills mansion — after slashing the price by nearly $3 million. The Simple Life alum, 43, and Good Charlotte frontman, 46, sold the 6,100-square-foot home for $10,183,985 on May 30, according to property records. The original asking price for the Parisian-style abode was $12.95 million, meaning the couple slashed the price by about $2.77 million before finding a buyer. The four-bedroom, 5.5-bath home is located in an exclusive and star-studded gated community in Beverly Hills and features a three-car garage, a library equipped with a fireplace, and a spa, according to the listing. Outside, the luxury home boasts a swimming pool and olive trees. The couple first purchased the property in 2021 after selling their previous residence, according to Before the couple moved in, the property was featured in Architectural Digest in a piece highlighting Simo Design, the Los Angeles-based designers who reimagined it. After the home's makeover, the designers put the home on the market in 2020 for $13 million, and later reduced the asking price to $12.4 million before selling to Richie and Joel, per The stars — who have been married since 2010 and are parents to two teenagers, Harlow, 17, and Sparrow, 15 — first put the property on the market last summer, just days after Madden's twin brother Benji and his wife, Cameron Diaz, listed theirs. Richie and Joel's listing went live on July 12, while Benji, 46, and Diaz, 52, listed their home on July 9. The Holiday actress and Good Charlotte guitarist put their compound, situated in the Benedict Canyon neighborhood, up for sale for $17.8 million, according to The longtime couple — who wed in January 2015 and share kids Raddix, 5, Cardinal, 1 — first bought the seven-bedroom, 8.5-bath mansion home in 2020 for $14.7 million. At the time, a source revealed to PEOPLE why Diaz and Benji decided to let go of the home. "They have multiple residences in Los Angeles and are choosing to let go of the Benedict property so that they can take residency at another one of their homes," the insider said. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. Both couples keep their marriages largely out of the spotlight. The twin Good Charlotte rockers did, however, recently open up about their 'healthy fear' of their wives while appearing on Rob Lowe's SiriusXM podcast Literally! in March. "They are absolutely our counterparts, and we all have a healthy fear of our wives... I don't know if I ever thought someone could keep me," Joel said "I was a relationship guy, but then I met Nicole, and she absolutely runs the show — but we are partners." The former reality star, Joel continued, "gave me a way deeper, richer life because of the aspects of my life that she oversees, she runs, and vice versa. We work together, but she's strong. I respect her and fear her a little bit." "That's the queen," Benji later added of Diaz. 'Go against my wife? Good luck. I don't even need to get involved." Read the original article on People
