Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 26 Feb, 25 | PONY | Buy | USD 17.09 | USD 18.03 | USD 18.97 | Same day | 11.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Revenue Growth – The company’s revenue doubled in the first half of 2024, reaching $24.7 million, compared to $12.3 million in the first half of 2023. This 101% year-over-year growth indicates strong business expansion.
Improved Gross Profit Margin – The gross profit margin for the six months ended June 30, 2024, improved to 10.5%, compared to 1.8% in the same period of 2023. This suggests better cost management despite continued losses.
High Operating Losses – The company’s loss from operations increased significantly in the six months ended June 30, 2024, reaching $(71.7) million (-290.1% of revenue) compared to $(77.5) million (-630.5% of revenue) in the same period in 2023. Although the percentage loss relative to revenue improved, the company is still experiencing substantial operating losses.
Heavy R&D Expenses – Research and development expenses remain a major cost, totaling $(58.7) million (-237.6% of revenue) in the first half of 2024, though lower than $(60.6) million (-493.3% of revenue) in the first half of 2023. While this suggests investment in innovation, it significantly outweighs revenue.
Key investment risks for the company include persistent operating losses, high R&D expenses relative to revenue, dependence on external funding, and uncertainty in achieving profitability amid evolving autonomous vehicle regulations and market competition.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 17.09 | 14.87 | 18.03 | 18.97 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Pony.ai Expands Autonomous Services to Hong Kong Airport
Pony.ai announced plans to provide driverless transportation services at Hong Kong International Airport, initially shuttling airport employees. The company also aims to expand its robotaxi services into urban Hong Kong. The Airport Authority recently showcased Pony.ai’s latest seven-seat, sixth-generation robotaxi to the media.
Pony.ai Secures Approval for Autonomous Truck Platooning in China
Pony.ai became the first company in China to receive approval for robotruck platooning tests on cross-provincial highways. The tests, starting on the Beijing-Tianjin-Tanggu Expressway, will feature a “1+N” formation, with only the lead truck requiring a safety operator. The company aims for full autonomy to reduce logistics costs.
Pony.ai Launches Paid Robotaxi Services in Guangzhou
Pony.ai has launched paid robotaxi services between Guangzhou’s city center, Baiyun International Airport, and South Railway Station. As the first approved provider on these routes, Pony.ai offers a convenient autonomous travel option via the PonyPilot App, with fares matching standard taxi rates, marking a key milestone in urban autonomous mobility.
Technical commentary:
Pony.ai's stock surged to a high of ~$22 before pulling back to $18.88 (-20.03%), indicating volatility and profit-taking. It remains above the 21-day ($15.23) and 50-day ($14.44) MAs, signaling bullish momentum. RSI at 59 suggests a loss of steam but not yet overbought. High volume indicates strong activity, with key support at $15-$16 and resistance at $22.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Pony AI Inc (NASDAQ: PONY) at the closing market price of USD 17.09 as of February 25, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industry:
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) |
|---|---|---|---|---|---|---|
| PONY Pony AI Inc. American Depositary Shares |
-1.23 13.95% | 7.59 | - | - | - | - |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 25,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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