DiDi Global Stock Forecast: DIDI shares drop back below $4
- DiDi Global stock dropped back below $4 on Monday after last week's meteoric rise.
- The Chinese government said it would support foreign listings last week in a change of pace.
- Oil prices are up nearly 6% on Monday.
DiDi Global stock (DIDI) is finding it hard to hold onto $4 at its New York open on Monday although it has made it up to $4.15 briefly. All three major US indices are down on higher oil prices, which have risen as much as 6% this morning, and continued uncertainty on the Ukraine front as President Joe Biden flies to Europe to speak with other heads of state about next steps concerning Russia.
DiDi Global Stock News: Shares coming off 116% one-week run
Shares of DIDI exploded more than 116% last week after Chinese regulators signaled they had changed their mind about supporting foreign listings for Chinese stocks. Many investors felt this means that they will now allow DIDI to keep their listing on the New York Stock Exchange, although there has been no certainty regarding this as of yet. DIDI was told to delist just one day after launching its IPO in New York just nine months ago. The UBER of China was then said to be relisted in Hong Kong, but regulators said its customer data security was still lacking.
DIDI options are quite popular. Calls expiring this Friday at a $4 strike price have the largest volume, but the price has dropped by over 30% to $0.47 per share.
Davis Global Fund took a longer-term view in its discussion of DIDI stock in its Q4 2021 investor letter: "Over time, the value of Didi, like any other company, will be determined by its business prospects and profitability rather than the location of its primary exchange listing."
DIDI key statistics
| Market Cap | $19.7 billion |
| Price/Earnings | N/A |
| Price/Sales | 0.2 |
| Price/Book | 1.1 |
| Enterprise Value | $13.9 billion |
| Operating Margin | -27% |
| Profit Margin |
-31% |
| 52-week high | $18.01 |
| 52-week low | $1.71 |
| Short Interest | 1% |
| Average Wall Street Rating and Price Target | Buy, $9.05 |
DiDi Stock Forecast: Bulls target $4.50 first
DIDI stock has reached a high of $4.67 on Monday, though shares have subsided to $4.20 around 11:00 AM EST. This is hopeful for bulls since $4.50 acted as resistance on February 10 and 16 during the most recent swing high. If DIDI can surmount this obstacle and close above it, bulls are looking at just $1 above there at $5.50. That price level offered resistance during the January 20 high. Above here and $8 is the next price target. $1.75 is the key support level.
DIDI 1-day chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
