QuantumScape Corp (NYSE:QS) shares are trading higher Tuesday afternoon, rebounding ahead of its second-quarter earnings report, scheduled for after the market close on Wednesday. The stock is bouncing back from a pullback on Monday that followed a greater than 200% rally over the past month.
What To Know: The recent surge, which pushed the stock to a new 52-week high last week, was fueled by positive company developments. In late June, QuantumScape announced a manufacturing breakthrough called the “Cobra” process, which is expected to dramatically increase the production speed of its solid-state battery separators.
This news, combined with an $18.7 million savings from a lease termination, boosted investor confidence in the company’s path to commercialization.
However, the rapid ascent left the stock in technically overbought territory, with the Relative Strength Index (RSI) soaring above 90, signaling a likely correction. The subsequent pullback on Monday was seen as profit-taking by traders.
Investors are now keenly focused on Wednesday’s earnings release. Analysts are forecasting a loss of 20 cents per share. Beyond the headline number, shareholders will be looking for the company to provide positive guidance for the upcoming quarter and offer further updates on its technological progress and financial outlook.
The report will be a key catalyst for investors, likely determining whether the stock can resume its upward momentum or if a more prolonged consolidation is in store.
Price Action: According to data from Benzinga Pro, QS shares are trading higher by 7.59% to $13.47 Tuesday afternoon. The stock has a 52-week high of $15.03 and a 52-week low of $3.40.
Read Also: 3 Stocks With Sky-High Overbought Signals: QuantumScape, Opendoor, Cogent Flash RSI Red Flags
How To Buy QS Stock
By now you're likely curious about how to participate in the market for QuantumScape – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of QuantumScape, which is trading at $13.47 as of publishing time, $100 would buy you 7.42 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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