One of this quarter’s biggest breakout stocks is about to report earnings for the fourth quarter of 2023. Faraday Future Intelligent Electric (NASDAQ:FFIE) is the undisputed winner of the recent meme stock rally. After months of bleeding value and falling as low as $0.040 per share, the micro-cap electric vehicle (EV) producer surged on unexpected momentum from retail trading. Now, the heat from the rally has cooled off, but FFIE stock remains significantly elevated, trading comfortably above $1 per share. This may not seem like much, but given how low it traded only a few weeks ago, it is noteworthy.
Now, Faraday Future is gearing up to report earnings after the close of markets today. What it reveals will do much to determine its growth prospects in the second half of the year. This is one report that investors should watch keenly.
What’s Happening With FFIE Stock
As noted, FFIE is in the green today, but not by much. As of this writing, it is up about 3% after constant volatility throughout the day. This is in keeping with how trading has been throughout the past week, with shares dropping 20% from their rally-driven highs. Now, the Q4 earnings report is quickly approaching, though, and with it, market judgment day for this new meme stock.
Faraday Future’s earnings call is scheduled for 8 p.m. EDT today. FFIE stock is likely to close out trading in the green today, but if it misses Wall Street estimates, it could be the end of the company’s winning streak. There are multiple factors to consider that could negatively impact it in the coming months. As ElectricVehicles.com reports:
“Despite a year-to-date surge of 291.21 percent, the stock remains 94.93 percent lower compared to last year. The company is currently contesting a delisting notice from Nasdaq after shares traded below $0.10 for ten consecutive days. An appeal initiated in early May prompted a temporary suspension of its securities, which ended on May 16.”
A Troubled EV Stock
These are just some of the reasons that experts have flagged Faraday Future as a troubled EV stock that investors should sell before it follows the path of fellow troubled automaker Fisker (OTCMKTS:FSRN). FFIE stock doesn’t receive much analyst coverage, likely because it is a microcap penny stock that, until recently, didn’t seem like it could even get close to $1 per share.
Regardless, investors should prepare for trouble if the Faraday earnings report reveals that the company’s struggles are worse than expected.
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On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
