Jim Cramer Suggests to 'Stay Away' From NIO
'You know, I don't think that that is a really terrific situation. I happen to think that there are better buys, and I think that market is flooded right now. Let's stay away from that one.'
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
NIO Inc. (NYSE:NIO) develops and sells smart electric SUVs and sedans, along with a full ecosystem of charging, battery-swapping, insurance, financing, and after-sales services. During an October 2024 episode, when a caller inquired about the company stock, Cramer replied, 'I want you to hold on.' Since the comment was made, the stock has declined nearly 33.5%.
On August 1, NIO Inc.'s (NYSE:NIO) stock was upgraded to Outperform from Neutral with a $5.50 price target by Macquarie, as the firm stated that it sees the company's newly launched L90 as the company's most competitive model to date. According to Macquarie, the L90 offers stronger value than Li Auto's recent i8 and is a six-seat large SUV positioned near the price of Tesla's five-seat Model Y. The firm projects monthly sales of 8,000 to 12,000 units for the L90.
While we acknowledge the potential of NIO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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