NIO - Why NIO Slack Technologies and American Vanguard Slumped Today
Major benchmarks moved lower on Wednesday, reflecting greater uncertainty about whether trade disputes between China and the U.S. will resolve favorably. Market participants also seemed ready for a pause following a strong move higher yesterday, and as more companies start to release their latest earnings results, investors should prepare to see both winners and losers. Some stocks posted fairly substantial losses on company-specific concerns. NIO (NYSE: NIO), Slack Technologies (NYSE: WORK), and American Vanguard (NYSE: AVD) were among the worst performers. Here's why they did so poorly.
Shares of NIO dropped 6% as the Chinese electric vehicle manufacturer faced new uncertainty. NIO has wanted to raise money in order to invest in building a new factory in China, and the stock has been turbulent recently as market watchers debate whether the company will be successful in its efforts. Most recently, sentiment has turned negative, as talks between NIO and a local provincial government entity seeking funding came to a halt. With the Chinese economy seeing a substantial slowdown and the risks associated with the electric vehicle manufacturer remaining high, it didn't take much bad news to reverse NIO's recent share-price gains.
Image source: NIO.