Shares of Nio Inc – ADR (NYSE:NIO) are flat at $7.44 Thursday afternoon, following a sharp 23% rally over the past week. The upward trend stems from the company’s $1.16 billion stock sale and a powerful rally in Chinese tech. Here’s what investors need to know.
What To Know: The American depositary shares were priced at $5.57, and the offering was bolstered by underwriters exercising their full option to purchase additional shares. Nio plans to invest the new capital into research and development for its electric vehicles, expanding its battery swapping network and fortifying its balance sheet.
Further propelling the stock is a broad rally across China’s technology and EV sectors. Investor optimism is surging on the back of anticipated increases in artificial intelligence spending, with forecasts suggesting capital expenditures from China’s top tech firms could more than double to over $32 billion by 2025.
This positive sector-wide sentiment, combined with Nio’s strengthened financial position, appears to be providing a powerful tailwind for the automaker’s shares over the past week.
Benzinga Edge Rankings: According to Benzinga Edge rankings, Nio boasts a strong Momentum score of 86.08, underscoring the stock’s positive price action.
Price Action: According to data from Benzinga Pro, NIO shares are trading higher by 23% to $7.44 over the past week. The stock has a 52-week high of $7.71 and a 52-week low of $3.02.
Read Also: Trump Makes Chinese Stocks Great Again — Until Someone Mentions Tariffs
How To Buy NIO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Nio’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Image: Shutterstock
