Has Nikola stock bottomed out after Sell-Off? – Idaho Reporter

NKLA stock news

Has Nikola stock bottomed out after Sell-Off?

Nikola Corporation (NASDAQ:NKLA) has been in a free fall this month. The stock lost almost 40% this month and has been hitting new lows during the last trading session on Monday. Has NKLA stock bottomed out amid the recent crash?

Based on yesterday’s closing prices, Nikola’s market capitalization was $14 billion which is half the market cap compared to just a month ago. Back then Nikola was all over the news when it surpassed Ford’s and Fiat Chrysler’s market cap.

Nikola stock versus Dow Jones Index

Now, both the Dow Jones Index and the S&P 500 are in a bullish market. Surging so fast and so much in a first month after the IPO, it was expected that NKLA would come crashing down during sell-offs. However, after the steep crash, has NKLA stock bottomed out? First, we’ll look at Monday’s price action. NKLA stock lost staggering $10 per share while the Dow Jones Index and S&P 500 posted modest gains. But gains are gains.

Stock Valuation and bottom fishing?

At this point, it’s tough to predict Nikola’s 2021 earnings because this is an early stage company that is only promoting their technology to the masses. According to Nikola founder, Trevor Milton, company will earn $1 million in revenue for every truck it puts in service.When will this happen no one knows. So, valuing NKLA now would be based on hope and expectations.

Now that the stock is down again I said that this could be a good re-entry point and it seems as if the stock started bouncing back from its Monday low. Maybe you are missing a good point for bottom fishing. We all know that you should buy during dips and not during peaks.

Overall Nikola share price have been relatively strong this year considering the carnage in other industries, let us not forget that I suggested NKLA when it was below $20.

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