Canoo Stock News and Forecast: GOEV stock earnings preview

Canoo Inc. is set to report earnings after the close on Monday.
GOEV stock has fallen sharply this year, down over 40% year to date.
GOEV selected to nearly go to the moon.

Ivan Brian FXStreet

Canoo Inc (GOEV) stock is set to report its first-quarter 2022 earnings today, Monday, after the market close. GOEV is a start-up electric vehicle manufacturer started in 2017 in California. The company focuses on building electric vehicles that maximise interior space. The cars are unusual looking in this author's opinion but certainly noticeable.

GOEV stock news: Canoo vehicles going to the moon

Many meme stocks tried to go "to the moon" during the pandemic retail trading frenzy. GameStop (GME) and AMC would have been the poster stocks for this phrase. But in an ironic twist, GOEV is about to transport astronauts to the moon. Well, not quite, but GOEV recently announced that it has been selected by NASA to provide astronaut crew vehicles. The Canoo electric vehicles will deliver the Artemis crew to the launch site for the first planned moon landing in 50 years. "To the moon" we go. Canoo is set to deliver the vehicles to NASA by June 2023.

Before then, earnings will drop after the close on Monday. Earnings per share are expected at $-0.50 and revenue is forecast at $0. GOEV is early stage and does not yet produce any electric vehicles so revenue is yet to kick in. The rate of cash burn and cash available is the key metric. It needs cash to ramp up production but cash is not as cheap or easy to find now. GOEV said its forecast for Q1 was for operating expenses of $95 to $115 million and expenditures of $60 to $80 million. Watch this for inflationary pressures. If GOEV is burning too much cash and struggles to find fresh investment it will struggle to survive.

Recently, director Thomas Dattilo bought over $250,000 worth of stock. Insider buys are much more predictive than insider sells and this is a significant investment for such a small start-up company. However, the shares were bought higher than current levels before the NASA announcement, so this news is clearly discounted.

GOEV stock forecast: Burning cash in inflation not good

Too much uncertainty around GOEV stock, as there was no reaction from the NASA order news. GOEV share price is likely to struggle with burning cash in an inflationary environment. The only hope is for more public funding.

GOEV stock daily price chart

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.