‘Watch for These Catalysts,' Says Top Investor About Lucid Stock
Confident Investing Starts Here:
Yet, despite the steep decline, recent developments suggest there may be some light at the end of the tunnel. Lucid remains on track to manufacture 20,000 vehicles in 2025 – in line with its guidance – and its Q1 2025 net loss of $366 million marks a 46% year-over-year improvement. The company also ended the quarter with a strong liquidity position of $5.76 billion.
Even so, Lucid is still operating at a loss, which means any bullish stance largely hinges on faith in the company's long-term potential rather than near-term profitability.
That's where top investor Rick Orford – ranked in the very top 1% of TipRanks' stock pros – sees an opportunity. He points to two key catalysts on the horizon: Lucid's strategic partnership with Saudi Arabia and the upcoming launch of the Lucid Gravity SUV. According to Orford, these developments could help shift sentiment and lay the groundwork for future growth and profitability.
'Short-term prospects remain uncertain, but patient investors could benefit significantly if Lucid achieves profitability in the next 3–5 years,' Orford opined.
The investor further highlights just how embedded Lucid is in Saudi Arabia's EV ambitions. The Kingdom's sovereign wealth fund holds a majority stake in the company and has committed to purchasing between 50,000 and 100,000 vehicles over the next decade. As Orford sees it, Saudi Arabia views Lucid not just as a financial investment, but as a cornerstone of its broader push to diversify its economy and establish a foothold in the global EV race.
'I'm speculating that they're using Lucid Motors at least in part to achieve their vision of moving away from oil dependency, which could translate to a huge growth runway for the company,' Orford noted.
The investor is also intrigued by the company's Lucid's Gravity SUV, which he believes has the potential to help the company capture market share from Tesla when it becomes available next year. Not only does Gravity's 420-mile range compare favorably to Tesla's 244-mile estimates for the Model Y, but the Elon Musk-led company's reputation is in tatters due to his political activities.
Summing up, the investor believes in the company's ability to deliver growth going forward – especially for those willing to look further down the road. 'I'm rating the stock a 'Buy' for its long-term potential,' concludes Orford. 'I think investors (buying) at today's prices will be very pleased.' (To watch Orford's track record, click here)
Wall Street, however, isn't quite as enthusiastic. Most analysts are still in 'wait-and-see' mode. With 7 Holds outweighing just 1 Buy and 2 Sells, LCID claims a consensus Hold (i.e., Neutral) rating. Meanwhile, the average 12-month price target of $2.54 implies the stock is likely to stay range-bound for the foreseeable future. (See LCID stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
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Here are some of the biggest stories you may have missed overnight and early this morning: Nvidia, AMD revenue deal brings 'monetization of US trade policy' Yahoo Finance poll: Americans face new, complex financial challenges Earnings live: stock tanks, AMC to report Debate over Fed rate cuts heats up: What to watch this week Fed's Bowman makes case for 3 interest rate cuts in 2025 Intel CEO to visit White House on Monday Citi strategists raise S&P 500 target on resilient earnings Bitcoin Nears Record as Treasury Investors Boost Crypto Market BofA poll shows record number of investors say stocks overvalued Lithium market soars as CATL shuts one of world's biggest mines stock tanks after the company reports earnings stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here US gold futures fall as traders await clarification on tariffs US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. Target still in the bear camp Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Bitcoin near a fresh record Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. crashing Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. 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
Business Wire
3 minutes ago
- Business Wire
SLP BREAKING NEWS: Simulations Plus, Inc. Stock Significantly Declines After Impairment Charge and Auditor Departure -- Investors Urged to Contact BFA Law
NEW YORK--(BUSINESS WIRE)--Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Simulations Plus, Inc. (NASDAQ: SLP) for potential violations of the federal securities laws. Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Simulations Plus, Inc. (NASDAQ: SLP) for potential violations of the federal securities laws. Share If you invested in Simulations Plus, you are encouraged to obtain additional information by visiting: . Why Is Simulations Plus being Investigated? Simulations Plus is a software company that develops tools for modeling and simulation in the pharmaceutical, biotechnology, and chemical industries. In June 2024, Simulations Plus acquired Pro-ficiency Holdings, Inc., a provider of simulation-based learning, intelligence and compliance solutions. During the relevant period, Simulations Plus touted the integration of Pro-ficiency and represented that the acquisition would double its total addressable market and was meaningfully contributing to sales. Simulations Plus also certified that its internal controls over financial reporting were effective. In truth, it appears Simulations Plus struggled to successfully integrate Pro-ficiency and lacked effective internal controls. The Stock Declines as the Truth Is Revealed On April 15, 2025, the Company hired Grant Thornton LLP as its new auditor. Less than two months later, on June 11, 2025, Simulations Plus announced disappointing preliminary financial results for 3Q 2025 citing purported '[m]arket uncertainties surrounding funding, drug prices and potential tariffs' as 'significant headwinds.' On this news, the price of Simulations Plus stock fell $6.39 per share, or more than 24%, from $26.44 per share on June 11, 2025, to $20.05 per share on June 12, 2025. Then, on July 14, 2025, Simulations Plus reported its 3Q 25 financial results which included a $77.2 million charge 'related to prior acquisitions.' The next day, Simulations Plus reported that it had dismissed Grant Thornton. When discussing the dismissal, Simulations Plus stated that 'the Company (i) reviewed certain matters regarding segment reporting and reporting unit determinations, that it determined could not be finalized in time . . . , (ii) evaluated internal controls over financial reporting related to Sarbanes-Oxley Act Section 404(a) compliance, concluding they could not be finalized timely [], and (iii) there were no 'reportable events' as defined in Item 304(a)(1)(v) of Regulation S-K.' However, Simulations Plus also revealed that the auditor disagreed with the Company's characterizations and that, according to Grant Thornton, '[it] identified and communicated certain matters to management and the Audit Committee related to segment reporting and reporting unit determinations as well as internal controls over financial reporting. . . . These matters were not resolved to our satisfaction as of the date of our termination.' On the news of the impairment charge, the dismissal of Grant Thornton, and the auditor's findings, the price of Simulation Plus stock declined $4.50 per share, nearly 26%, from $17.47 per share on June 14, 2025, to $12.97 per share on June 15, 2025. What Can You Do? If you invested in Simulations Plus you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses. Why Bleichmar Fonti & Auld LLP? BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named 'Elite Trial Lawyers' by the National Law Journal, among the top '500 Leading Plaintiff Financial Lawyers' by Lawdragon, 'Titans of the Plaintiffs' Bar' by Law360 and 'SuperLawyers' by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd. For more information about BFA and its attorneys, please visit Attorney advertising. Past results do not guarantee future outcomes.
