Should I buy FFIE to short
6/27/2024 04:58pm
**Faraday Future Intelligent Electric Inc. (FFIE) does not appear to be a favorable candidate for short selling.** Here's why:
1. **Recent Financial Improvements**: FFIE has recently reported revenue for the first time, with $0.8 million in 2023, and a significant reduction in operating loss from $437 million in 2022 to $286 million in 2023. This indicates a transformation from a company primarily focused on research and development to one that is generating revenue and reducing its losses.
2. **Stock Price Volatility**: FFIE's stock has experienced significant volatility, with a wide range between its lowest and highest prices over the past 12 months, from $0.04 to $117.57. This volatility could make short selling challenging, as the stock could potentially experience rapid price changes.
3. **Market Sentiment**: Despite the recent financial improvements, FFIE's stock still holds a bearish sentiment, with a Smart Score of 1, indicating that analysts do not have a favorable outlook on the stock. This sentiment could persist, making short selling more attractive.
|Ticker|Name|Closing Price|Date|code|market_code|
|---|---|---|---|---|---|
|FFIE.O|Faraday Future|0.4585|20240626|FFIE|186|
4. **Potential for Future Growth**: FFIE has announced its commitment to increased production and deliveries while maintaining financial discipline. The company's continued pursuit of significant strategic investors to drive future growth suggests that there may be positive developments that could affect the stock price.
|Ticker|Name|Date|code|market_code|
|---|---|---|---|---|
|FFIE.O|Faraday Future||FFIE|186|
5. **Recent Stock Movement**: FFIE's stock has been on an upward trend, with a 147.19% gain on the last trading day and a 1429.28% increase over the past 2 weeks. This recent positive momentum could continue, making short selling less attractive.
|Ticker|Name|Date|code|market_code|
|---|---|---|---|---|
|FFIE.O|Faraday Future||FFIE|186|
In conclusion, while FFIE has some negative indicators such as bearish sentiment and potential overvaluation, the recent financial improvements, stock price volatility, and positive future prospects make short selling risky. It is advisable to exercise caution and consider these factors before making a decision to short FFIE stock.