If you're investing in an electric vehicle (EV) battery technology company. quantum scape (New York Stock Exchange:QS), be sure to mark it on your calendar. A big event is scheduled soon, and depending on the outcome, QS's stock price prediction may change significantly. So, unless you're just a gambler, there's no need to take a big risk buying QuantumScape stock right now.
Additionally, QuantumScape's partnership with a big-name automaker may not be as strong as previously assumed. All in all, the bullish argument for QuantumScape stock in 2024 just doesn't hold up under scrutiny.
A big and scary day is coming for QS stock.
Frankly, QuantumScape's quarterly EPS performance is very poor. QuantumScape has missed Wall Street's earnings per share estimates almost every time.
This EPS miss track record includes QuantumScape's most recent three quarterly reports. In the company's most recent report, analysts expected QuantumScape to post earnings of 19 cents per share. However, QuantumScape actually caused him to suffer a loss of 23 cents per share.
This helps explain why QuantumScape stock basically went nowhere in 2023, despite its high volatility. QuantumScape is a consistently unprofitable company and is unlikely to be able to meet Wall Street's already modest expectations.
In 2021's highly speculative, low interest rate environment, that might have been a good thing. But in 2024 he will be very different than in 2021. Either way, Wall Street now expects QuantumScape to report a loss of 19 cents per share in fourth-quarter 2023, which is in line with analysts' expectations for the previous quarter. QuantumScape was off the mark.
So mark your calendars for February 14th, St. Valentine's Day. That's when QuantumScape releases his Q4 2023 financial results. This is a day to watch events from the sidelines, but you shouldn't make risky bets on companies with terrible earnings records.
Is QuantumScape's key partnership in jeopardy?
One of the main pillars of the QS stock bull market is QuantumScape's strategic partnerships with the following companies: Volkswagen (OTCMKTS:Voisy).I really like you investor place Contributor Thomas Neal summarizes how important this partnership is:
“[It’s] A section of QS stock is recognized as a significant positive. The EV battery technology company is still in the pre-profitability stage and continues to burn hundreds of millions of dollars every year, but bulls on the stock believe it will be worth it in the end. ”
It is no exaggeration to say that a strategic partnership with Volkswagen will be the difference between success and failure for QuantumScape. i don't think so. However, in recent reports, Reuters It calls into question the strength of this partnership.
As the report points out, the collaboration between Volkswagen and QuantumScape has been “plagued by delays.” So is Volkswagen looking beyond QuantumScape and considering other partners?
of Reuters Indeed, the report suggests that Volkswagen is “casting its net wider.” Volkswagen is “in discussions” with a French-based battery technology company, according to a “person with direct knowledge of the discussions.” blue solutions.
It cannot be said with certainty that the strategic partnership between Volkswagen and QuantumScape is disintegrating. Still, it's alarming considering how important this partnership is to QuantumScape. It is not good for a startup to rely heavily on his one partnership. And it's even worse if that collaboration may not be as strong as previously envisioned.
QuantumScape Stock Price Prediction: Exit by February 14th
My predictions for QS stock have been bearish for a while. Currently, there is an important financial event coming up on February 14th, and the outlook is uncertain but still pessimistic.
What's also troubling is that QuantumScape's stock bull market relies heavily on its partnership with Volkswagen, which could be in jeopardy. Therefore, if you were considering investing in QuantumScape before February 14th, we recommend that you cancel, cease trading, and stay away from trading.
Publication date, David Mordell did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
