- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD: No respite to the sell-off ahead of US CPI
The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.