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Lucid Group stock price has bounced back and surged to its highest point since February 25. LCID soared by almost 50% from its lowest level this year, mirroring the performance of other companies like Tesla and Rivian Automotive. This article explores the recent earnings and whether this is a good time to buy the stock.

Why Lucid Group stock price has jumped

Lucid Group share price has rallied in the past few weeks as investors reacted to the recent earnings, which showed that the company’s business was doing well in a difficult environment. 

The numbers revealed that Lucid delivered 3,109 vehicles in the first quarter, up by 58% from the same period last year. This happened as the company produced 2,212 vehicles in the quarter, including 600 that were in transit to Saudi Arabia. 

Most importantly, the company grew its gross margin during the quarter to minus 97% from minus 134% in the same quarter a year earlier. This margin, however, was worse than minus 89%, which it had in the fourth quarter of last year.

Lucid Group EBITDA, a closely-watched figure, also improved to minus $563 million during the quarter. 

Therefore, analysts anticipate that LCID’s business will continue improving in the next few years as it works towards profitability. 

For example, the average revenue estimate from Wall Street investors is that its second-quarter revenue will be $288 million. They also expect that the earnings per share (EPS) will be a 22-cent loss, an improvement from the 31-cent loss in Q2’24.

Analysts are also optmistic that the annual revenue this year will also be strong. The average estimate is that the annual revenue will grow by 72% to $1.4 billion, followed by 95% growth in 2026. This growth will be because the management expects to ramp up production from 9,000 in 2024 to 20,000.

Lucid Group’s annual loss per share is expected to improve from $1.25 last year to 83 cents this year and 64 cents next year. As such, while Lucid Group’s cash incineration will continue, analysts expect the business to move in the right direction in the coming years.

Lucid Gravity sales 

The other reason why the Lucid stock price surged is the ongoing Gravity vehicle sales. Recent data shows that the SUV is starting to gain traction as the delivery started in December last year.

Gravity is a sports utility vehicle starting at $79,900, with the Touring version costing over $100,000. The company hopes that it will be the best electric SUV in the US as it competes with products made by companies like Rivian, Hyundai, Tesla, and General Motors. 

Lucid’s Gravity vehicle is a more premium vehicle than its competitors, meaning that it will mostly attract wealthy shoppers and executives. 

Lucid Group share price technical analysis

LCID stock chart | Source: TradingView

The daily chart shows that the LCID share price bottomed at $2, a level it has failed to move below since November last year. 

It is now attempting to move above the descending trendline that connects the highest swing since September 2023. Top oscillators like the Relative Strength Index (RSI) and the MACD have risen and are pointing upwards. 

Therefore, the Lucid stock price will likely have a bullish breakout, with the next level to watch being at $4.38, the highest swing on August 27, which is about 49% above the current level. A drop below the support at $2 will invalidate the bullish Lucid Group stock forecast, 

Read more: Lucid Group stock forecast ahead of earnings: buy, sell, or hold?

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The Pi Coin price has remained under pressure in the past week after the much-anticipated ecosystem news event was disappointing. Pi Network coin was trading at $0.80 on Wednesday, down by 52% from the highest point this month. This article explores whether Pi is a ghost chain and the impact on price.

Pi Network aimed to change the crypto industry

Pi Network is a crypto project started seven years ago to solve a key problem that Bitcoin has: its cost of mining. Bitcoin mining has continued rising over the years and is now dominated by large publicly-traded companies like Mara and Riot Platforms that run huge mining farms.

Pi Network became popular by creating a platform that enables anyone with a smartphone to mine the coin. Users just need to download an app and then start mining coins by just tapping a button.

Pi also hoped to solve the challenge where Bitcoin lacked smart contract features, making it almost impossible for developers to build dApps on top of it. It provided developers tools to build applications in industries like e-commerce, gaming, and decentralized finance (DeFi).

Pi’s goal was that its coin would be used in the physical and digital worlds, giving it utility. Also, as with other chains, Pi Network hoped that these transaction costs would be used to burn the token, reducing those in circulation and boosting its price.

The presence of an ecosystem was so important that it was a precondition for the mainnet launch to happen. It had to have at least 100 mainnet-ready applications.

Pi Network price chart | Source: TradingView

Is Pi a ghost chain?

Therefore, the question is whether Pi Network is a ghost chain or not. A ghost chain is a blockchain project that has no developers and apps in its ecosystem. It also refers to those chains with ecosystems that people don’t use.

A closer look at the Pi Network ecosystem shows that there are applications in its marketplace. Maps of Pi is a search engine that shows the locations of businesses accepting the Pi Coin. 

Fruity Pi is a game that has become fairly popular in the ecosystem. Other apps in the network are WorkforcePool (an Upwork of Pi), MyFestMap, Pet for Pi, and ChatGPT for Pi. 

The challenge for Pi Network is that there are signs that developers are not building in its technology stack. Also, no mainnet-ready application has gone mainstream in the past few months. 

This explains why the developers launched Pi Network Ventures last week. This initiative will see the company deploying $100 million to fund startups leveraging the Pi Network ecosystem.

An ecosystem fund is a good initiative that other blockchains have launched similar initiatives. Solana has a $300 million ecosystem fund, while Ethereum launched a $1.03 billion fund. Kava, Skale, Harmony, Kadena, and Velas are other chains with similar funds.

The challenge for Pi Network is that the process of identifying projects to fund will take time. After that, the process of building applications will be a lengthy one.

As other chains like Harmony, Kadena, and Velas have showed, it is not guaranteed that projects that receive funding will succeed. Kadena’s KDA token is now valued at $183 million, while Velas, which launched a $100 million fund is worth $11 million.

Centralization problem

In addition to being a ghost chain, Pi Network also faces the accusation that it is a highly centralized network. 

This accusation stems from the fact that it is overseen by two entities: Pi Core Team and Pi Foundation. 

For a project with a fully diluted valuation of over $70 billion, token holders should know more about these entities. Also, there should be a clear audit by a top auditor.

Nothing is known about the Pi Core Team and the foundation, if it exists. Besides, Pi Foundation today controls over 90 billion. As such, holding Pi is giving this foundation the benefit of the doubt that it will do the right thing and not dump the tokens. 

There is also a risk that these addresses may be hacked, leading to substantial losses to token holders. 

The fact that it is a ghost chain and that it is highly centralized explains why many mainstream exchanges like Binance and Coinbase are yet to list it. It also explains why Pi Coin price has crashed.

Read more: Pi Network price prediction: Will Pi Coin recover from this plunge?

The post Behind the hype: Is Pi Network a $70 billion ghost chain? appeared first on Invezz

Warby Parker stock price surged by over 15% on Tuesday after unveiling a major $150 million partnership with Google. It jumped to a high of $22, its highest swing since March 6, up by 61% from the lowest point this year. So, will this partnership fuel WRBY’s stock surge in the coming months?

Warby Parker partnership with Google

The main catalyst for the WRBY stock price was a partnership with Google, one of the top technology companies. This partnership will see Google invest $150 million to develop AI-powered smart glasses.

Google has already invested $75 million in this project, and is expected to release the rest soon. Most notably, Google will become a minority shareholder in Warby Parker, a company valued at over $2.47 billion. 

The two companies hope to become major players in the wearable industry, which has struggled to gain traction over the years. The most notable failures was Google Glass, a product that was launched in 2012. After years of development, the product failed to gain traction and was canceled in 2015.

Other wearable products have also failed to gain traction. The most recent “failure” was Apple Vision Pro, a product costing $3,500 that failed to gain traction among users. Apple has not released its sales numbers, but its financial results have not shown any meaningful improvement since its launch.

This partnership will also be challenging because Warby Parker is a glass maker and has no experience building these smart glasses. Therefore, there is a risk that the company’s AI products will not be all that successful.

Read more: Warby Parker: Is it a better stock than EssilorLuxottica?

WRBY business is doing well

Warby Parker’s business is doing well even without the Google partnership. Its success is mostly because of the affordability of its glasses, many of which sell for $95. It has not increased the price since its founding in 2010, meaning that, it is selling its products at a discount. Accounting for inflation, Warby Parker should be selling its glasses for about $140 today.

The company has solved this problem by introducing glasses that sell for $195, and its financial results show that these ones are highly popular. Comparable glasses by other companies would cost over $500.

WRBY revenues jumped from $393 million in 2020 to $771 million. It has also continued to narrow its losses and is now on a path towards profitability. Its annual loss moved from 4144 million in 2021 to $14 million in the trailing twelve months (TTM).

The most recent results showed that Warby Parker’s revenue rose by 11.9% to $224 million as the average revenue per customer jumped to $310. Its free cash flow rose to $13.2 million.

The management expects that the company’s revenue rose by between 13% and 15% to between $869 million and $886 million. Also, its adjusted EBITDA will be between $91 million and $97 million. 

Warby Parker stock price analysis

WRBY stock chart | Source: TradingView

The daily chart shows that the WRBY share price bottomed at $13.6 in April after Trump launched his tariffs on Liberation Day. It then rebounded and moved to a high of $22, its highest level since March 6. 

The stock formed a God candle on Tuesday after the Google partnership deal. This is a common occurrence whenever a big company like Google partners with a smaller one. 

Historically, these gains are usually short-lived as the momentum eases over time and the hard work of implementing the strategy rises. Therefore, the Warby Parker stock price will likely lose momentum in the coming days, and then bounce back later this year. 

The recovery will be because of its organic growth and the profitability instead of the Google partnership.

Read more: Warby Parker stock price crashes to key support: buy the dip?

The post Warby Parker stock price analysis: will the WRBY surge continue? appeared first on Invezz

India is on the brink of a coffee revolution—one that’s brewing not only in the growing number of artisanal cafés and international coffee chains sprouting across the country, but also in homes, as more consumers embrace the idea of brewing coffee themselves to bring the addictive aroma indoors.

According to Redseer Strategy Consultants, by 2028, the out-of-home coffee market is projected to grow at a robust CAGR of 15–20%, reaching a size of $2.6–3.2 billion.

At the same time, India’s coffee equipment market is heating up—not just fuelled by cafés and restaurants, but increasingly by households embracing home brewing.

While Germany’s WMF and Italy’s premium brand La Marzocco had already gained a foothold in the market, Nespresso launched its first boutique store in New Delhi in March, aiming to capture a share of both the growing B2C and B2B segments.

To understand the momentum behind this movement, Invezz spoke with Abhinav Mathur, CEO of Something’s Brewing, India’s first dedicated e-commerce platform for coffee brewing gear, accessories, and educational workshops.

Mathur also runs Kaapi Machines, which serves the coffee needs of India’s restaurant and hospitality sector.

“What we’re seeing is a shift from convenience-driven coffee to experience-driven coffee,” Mathur explained in an insightful conversation.

He noted that the fastest-growing category on Something’s Brewing is home-brewing gear, such as French Presses, AeroPresses, and entry-level espresso machines, highlighting the growing enthusiasm for home brewing.

This surge in interest is also shaping the company’s strategic roadmap.

Mathur says they plan to double their physical presence through more Coffee Experience Centres in key cities, expand into tier-2 markets via curated pop-ups, and grow their D2C business by 40% year-on-year.

Excerpts from an emailed interaction:

Increased traction guiding expansion into tier-2 markets, strong growth in D2C

Invezz: What was the thought behind coming up with Something’s Brewing, and what are the key milestones you have in mind in terms of revenues and physical presence?

The idea for Something’s Brewing was sparked by a gap I saw firsthand during the early days of the pandemic—people loved their café coffee, but didn’t feel equipped or confident to recreate that experience at home.

We wanted to change that. The vision was to build a one-stop destination for coffee gear, knowledge, and community—something that didn’t exist in India before.

Since our launch in 2020, we’ve seen incredible traction with a community of over 30,000 engaged brewers, both casual and serious.

In terms of milestones, we’re aiming to double our physical footprint with more Coffee Experience Centres across key cities, expand into tier-2 markets with curated pop-ups, and grow our D2C business by 40% YoY.

We’re also looking at strategic retail partnerships to complement our online presence and unlock new customer segments.

Home-brewing gear like French Press, AeroPress fastest growing category

Invezz: Based on the demand for your different products, can you identify a new or unique trend in the coffee consumption or sale pattern of Indians?

Absolutely—what we’re seeing is a shift from convenience-driven coffee to experience-driven coffee.

Consumers aren’t just looking for a caffeine fix anymore; they’re curious about brewing techniques, bean profiles, and even equipment aesthetics.

Our fastest-growing category today is home-brewing gear—manual brewers like the French Press, AeroPress, pour-over kits, and entry-level espresso machines.

We’ve also seen a sharp uptick in interest around grinders, scales, and accessories, indicating people want to control every aspect of their brew.

At the same time, premium café-grade equipment like La Marzocco and Rancilio is gaining popularity among micro-cafés and boutique spaces.

This tells us that both home brewers and independent café owners are taking quality more seriously than ever before.

Indians keen on experimenting with espresso at home to recreate the cafe experience

Invezz: Have you noticed any specific brewing methods becoming more popular in Indian households?

The Budan French Press & Mokapot have been the gateway brewer for most Indian households—they are approachable and deliver a full-bodied cup that works well with Indian taste preferences.

But over the past year, we’ve seen a noticeable rise in the Budan One-Touch POD machines as well. 

What is interesting is the growing segment of consumers now experimenting with espresso at home.

Our Budan espresso machine sales have grown 3X over the last 18 months.

More and more people are keen to recreate café-style beverages—from cappuccinos to iced lattes—in their own kitchens.

It’s a clear sign of how far home brewing has come in India.

Not just an urban movement; 40% of orders coming from tier-2, tier-3 cities

Invezz: What have the demand trends from tier 2 and tier 3 cities been like, and what do they show?

This is one of the most exciting shifts we’re witnessing.

Roughly 40% of our recent orders are now coming from tier 2 and 3 cities—from Indore to Surat, Coimbatore to Ludhiana.

Consumers in these cities are aspirational, digitally savvy, and eager to access the same quality coffee experiences as their metro counterparts.

These markets are also more responsive to education-led marketing—our blogs, tutorials, and brewing guides are heavily consumed in these regions.

It’s not just about product availability; it’s about building trust and making coffee knowledge accessible.

This demand tells us that the coffee movement is no longer an urban niche—it’s becoming a nationwide trend.

India’s coffee movement is entering a more mature, collaborative phase

Invezz: Your views on the Indian out-of-home coffee market right now.

India’s out-of-home coffee market is in an exciting phase of maturity.

We’re seeing the rise of homegrown specialty cafés, newer chains expanding to smaller cities, and even QSRs offering better coffee options.

While convenience is still a driver, experience is becoming the differentiator—ambience, customisation, and storytelling matter.

From a supply side, café owners are investing more in equipment and barista training.

As a result, the quality benchmark is rising, and customers are becoming more discerning.

What’s also encouraging is the increasing collaboration between café brands, equipment providers, and coffee educators—which means the ecosystem is finally evolving together.

That’s a very healthy sign for the market.

The post India’s coffee movement is spilling beyond metros, says Something’s Brewing’s Abhinav Mathur appeared first on Invezz

Shares of Chinese electric vehicle giant BYD surged to a record high in Hong Kong on renewed investor optimism, widening the premium over its Shenzhen-listed shares to an all-time high.

The stock jumped as much as 4.4% in Hong Kong, pushing its price to over 5% higher than its mainland counterpart, after adjusting for currency exchange, according to Bloomberg data.

The rally followed Citi lifting the stock’s price target on its HK stock to HK$727 from HK$688 and on Shenzhen shares to 669 yuan from 630 yuan.

The stock has also been buoyed by upbeat sentiment following Contemporary Amperex Technology Co.’s market debut, signalling growing confidence among foreign investors in BYD’s long-term prospects.

This performance stands out in a broader market where Hong Kong shares typically trade at a 33% discount compared to mainland stocks, as tracked by the Hang Seng Stock Connect China AH Premium Index.

Source: Bloomberg

BYD attracts premium in HK due to its appeal among global investors

Strategists at UBS AG noted that while the overall valuation gap between mainland and Hong Kong markets is expected to persist, select stocks like BYD and China Merchants Bank Co. are attracting a premium due to their perceived quality and appeal among global investors.

Better liquidity in offshore markets is further enhancing the attractiveness of BYD’s Hong Kong shares.

Citi cited a favourable export pattern for Chinese passenger vehicles in the first four months of 2025, which benefits BYD in particular.

Citi pointed to the growing momentum in plug-in hybrid exports and accelerating market share gains for BYD’s battery electric vehicles abroad.

Citi also assessed that BYD is best positioned among major automakers to withstand any potential price cuts in 2026, thanks to its economies of scale and diversified geographic sales mix.

BYD eclipses Tesla in future readiness

Further reinforcing its rise, BYD has overtaken Tesla in the global future readiness rankings published by the International Institute for Management Development (IMD).

The report measures a company’s capacity to anticipate and adapt to external changes.

IMD said Chinese dominance in the automotive sector is growing, with BYD, Geely, and Li Auto occupying three of the top four positions.

Earlier, BYD surpassed Tesla to become the world’s top EV seller.

In 2024, it reported $107 billion in revenue and delivered 4.27 million vehicles, far outpacing Tesla’s 1.79 million units and $97.7 billion in revenue, which marked its first annual sales decline.

BYD deepens its roots in Europe with Hungary expansion

BYD’s international ambitions continue to grow.

CEO Wang Chuanfu announced the establishment of a European centre in Hungary during a joint news conference with Hungarian Prime Minister Viktor Orban.

The new facility will create 2,000 jobs and serve as a hub for sales, after-sales services, testing, and the development of localised vehicle models.

Hungary, which has maintained close trade ties with China under Orban’s leadership, is already home to BYD’s European electric bus factory in Komarom.

A second plant for electric vehicle production is currently under construction, cementing BYD’s strategic position in the European market.

The post BYD hits record high in Hong Kong as Citi lifts target and EV outlook brightens appeared first on Invezz

European markets slipped on Wednesday as geopolitical tensions resurfaced and fresh inflation data from the UK cast doubt on the prospect of interest rate cuts.

Germany’s DAX declined 0.2%, France’s CAC 40 fell 0.3%, and the UK’s FTSE 100 lost 0.17% in early trade.

Sentiment was hit after US President Donald Trump’s latest attempt to mediate the war in Ukraine failed to yield any progress.

In a two-hour phone call with Russian President Vladimir Putin on Tuesday, Trump abandoned his earlier demand for a 30-day unconditional ceasefire—an approach that had been supported by Ukraine as a starting point for peace talks.

German Defence Minister Boris Pistorius criticized the shift, saying, “Putin is clearly playing for time. Unfortunately, we have to say Putin is not really interested in peace.”

The setback in diplomatic efforts adds further strain to Kyiv, especially following Trump’s public rift with Ukrainian President Volodymyr Zelenskiy earlier this year.

Meanwhile, in economic developments, the UK reported a sharp jump in inflation.

April’s consumer price index rose 3.5% year-on-year, up from 2.6% in March, marking the highest level since January 2024.

The acceleration in inflation, driven by wage pressures and persistent service-sector costs, may complicate the Bank of England’s path to easing.

Markets had been pricing in the potential for two rate cuts by year-end, but Wednesday’s data now makes even one cut appear uncertain.

The inflation surprise, coupled with ongoing geopolitical uncertainty, weighed on risk appetite and added to the cautious tone across European equity markets.

Asia markets open mostly higher

Asia-Pacific markets were mostly higher on Wednesday, shrugging off Wall Street’s first loss in seven sessions.

Japan’s Nikkei 225 slipped 0.23% after official data showed exports declined for the second consecutive month, underscoring the impact of US President Donald Trump’s broad tariffs on Japanese trade.

South Korea’s Kospi rose 0.58%, and the tech-heavy Kosdaq outperformed with a 0.95% gain.

Australia’s S&P/ASX 200 advanced 0.43%, lifted by strength in energy and financial stocks.

Hong Kong’s Hang Seng Index opened 0.45% higher, while mainland China’s CSI 300 was little changed in early trade.

US stocks on Tuesday

US stocks slipped on Tuesday as investors paused to reassess recent gains, with all three major indexes ending in the red despite paring intraday losses.

The Dow Jones Industrial Average lost 114.83 points, or 0.3%, closing at 42,677.24. The Nasdaq Composite dropped 72.75 points, or 0.4%, to 19,142.71, while the S&P 500 declined 23.14 points, or 0.4%, to settle at 5,940.46.

Tuesday’s modest pullback followed a solid stretch of gains for equities, with the Nasdaq and S&P 500 recently hitting their highest levels in nearly three months.

Traders appeared to take profits following the market’s rally from April lows, spurred by waning trade tensions and improving sentiment.

Still, caution lingered on the Street, as JPMorgan Chase CEO Jamie Dimon flagged risks that may not be fully reflected in current valuations.

Speaking at the bank’s investor day, Dimon noted signs of investor complacency and warned about the potential impact of rising inflation and stagflation.

The post European stocks open lower: FTSE down 0.2%, CAC 40 slips 0.3% appeared first on Invezz

Lucid Group stock price has bounced back and surged to its highest point since February 25. LCID soared by almost 50% from its lowest level this year, mirroring the performance of other companies like Tesla and Rivian Automotive. This article explores the recent earnings and whether this is a good time to buy the stock.

Why Lucid Group stock price has jumped

Lucid Group share price has rallied in the past few weeks as investors reacted to the recent earnings, which showed that the company’s business was doing well in a difficult environment. 

The numbers revealed that Lucid delivered 3,109 vehicles in the first quarter, up by 58% from the same period last year. This happened as the company produced 2,212 vehicles in the quarter, including 600 that were in transit to Saudi Arabia. 

Most importantly, the company grew its gross margin during the quarter to minus 97% from minus 134% in the same quarter a year earlier. This margin, however, was worse than minus 89%, which it had in the fourth quarter of last year.

Lucid Group EBITDA, a closely-watched figure, also improved to minus $563 million during the quarter. 

Therefore, analysts anticipate that LCID’s business will continue improving in the next few years as it works towards profitability. 

For example, the average revenue estimate from Wall Street investors is that its second-quarter revenue will be $288 million. They also expect that the earnings per share (EPS) will be a 22-cent loss, an improvement from the 31-cent loss in Q2’24.

Analysts are also optmistic that the annual revenue this year will also be strong. The average estimate is that the annual revenue will grow by 72% to $1.4 billion, followed by 95% growth in 2026. This growth will be because the management expects to ramp up production from 9,000 in 2024 to 20,000.

Lucid Group’s annual loss per share is expected to improve from $1.25 last year to 83 cents this year and 64 cents next year. As such, while Lucid Group’s cash incineration will continue, analysts expect the business to move in the right direction in the coming years.

Lucid Gravity sales 

The other reason why the Lucid stock price surged is the ongoing Gravity vehicle sales. Recent data shows that the SUV is starting to gain traction as the delivery started in December last year.

Gravity is a sports utility vehicle starting at $79,900, with the Touring version costing over $100,000. The company hopes that it will be the best electric SUV in the US as it competes with products made by companies like Rivian, Hyundai, Tesla, and General Motors. 

Lucid’s Gravity vehicle is a more premium vehicle than its competitors, meaning that it will mostly attract wealthy shoppers and executives. 

Lucid Group share price technical analysis

LCID stock chart | Source: TradingView

The daily chart shows that the LCID share price bottomed at $2, a level it has failed to move below since November last year. 

It is now attempting to move above the descending trendline that connects the highest swing since September 2023. Top oscillators like the Relative Strength Index (RSI) and the MACD have risen and are pointing upwards. 

Therefore, the Lucid stock price will likely have a bullish breakout, with the next level to watch being at $4.38, the highest swing on August 27, which is about 49% above the current level. A drop below the support at $2 will invalidate the bullish Lucid Group stock forecast, 

Read more: Lucid Group stock forecast ahead of earnings: buy, sell, or hold?

The post Lucid Group stock price could be on the verge of a bullish breakout appeared first on Invezz

Shares of Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery maker, surged over 18% in their trading debut on the Hong Kong stock exchange on Tuesday, showing strong investor confidence in the company’s global growth prospects amid a booming electric vehicle (EV) market.

CATL shares were last trading at 308 Hong Kong dollars, significantly higher than their initial public offering price of HK$263 per share.

The listing raised HK$35.7 billion ($4.6 billion), making it the largest global IPO of 2025 so far, according to a company filing.

The buoyant debut in Hong Kong came even as CATL’s shares on the Shenzhen stock exchange initially opened lower.

However, those shares later rebounded, closing 1.5% higher at 264 yuan.

Market analysts said the strong performance of the Hong Kong shares is likely to provide support to the company’s domestic valuation.

“For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors,” said Neil Beveridge, senior research analyst at Bernstein, speaking to CNBC.

“I think that as the H shares continue to perform strongly, that will pull up the A shares.”

Focus shifts to Europe amid slowing Chinese growth

CATL said in its filing that 90% of the IPO proceeds would be directed toward its planned manufacturing facility in Hungary.

The factory is expected to supply major European carmakers such as Stellantis, BMW, and Volkswagen in a strategic pivot towards international markets.

“Europe is an exceptionally important market for CATL,” Beveridge added.

“While growth in China is starting to level off due to high market penetration, Europe is still in early stages, with only 20-25% EV sales penetration. That leaves considerable room for expansion.”

This international push aligns with broader trends among leading Chinese EV companies like BYD, which are also seeking to expand abroad.

However, the path has not been without hurdles.

CATL’s global ambitions have faced pressure from geopolitical tensions, including trade restrictions imposed by the US and EU and its inclusion on a Pentagon watchlist earlier this year—allegations the company denies.

CATL a key company in global EV investment

Despite a 9.7% dip in annual revenue in 2024 due to intense domestic competition, CATL managed to post a 15% increase in net profit year over year.

EV sales in China surged to 11 million units last year, growing 40% from 2023, buoyed by state incentives and subsidies.

Brendan Ahern, chief investment officer at KraneShares, said CATL remains a cornerstone in global EV investment strategies.

“We’re a big believer and investor in CATL in our global EV strategy. It’s just phenomenal, it’s a ‘must own company,’ in my opinion, along with BYD for investors in the space,” Ahern said.

Bank of America, CICC, Goldman Sachs, Morgan Stanley, and JPMorgan Chase served as joint lead managers for the Hong Kong IPO.

Speaking on CNBC’s Squawk Box Asia, Andy Maynard of China Renaissance noted that CATL’s IPO underscores continued investor appetite for high-quality Chinese firms, even amid persistent trade tensions between Beijing and Washington.

The post CATL share price surges 18% in Hong Kong debut amid world’s biggest IPO of 2025 appeared first on Invezz

A growing chorus of Wall Street strategists is forecasting a banner year for European stocks, predicting they could achieve their most significant outperformance relative to their US counterparts in at least two decades.

This optimistic outlook is largely fueled by an improving economic landscape in Europe and a recalibration of corporate earnings expectations.

The Stoxx Europe 600 Index is anticipated to conclude the year around the 554-point mark, according to the average forecast from a Bloomberg poll of 20 strategists.

This projection suggests a potential gain of approximately 1% from its closing level on Friday.

Among the most bullish are JPMorgan Chase & Co., which has set one of the highest targets in the survey at 580 points, and Citigroup Inc., which predicts a more substantial 4% rally to 570 points.

This optimism is partly driven by analysts dialing back their earlier pessimism surrounding European corporate earnings.

In a striking contrast, both banking giants expect the US equity benchmark, the S&P 500, to decline through the remainder of the year.

The disparity in these forecasts is notable: JPMorgan’s targets for European and US markets suggest the Stoxx 600 could outperform the S&P 500 Index by a remarkable 25 percentage points in 2025 – a margin that would be the largest on record.

Citigroup’s projections, meanwhile, would mark the best relative performance for European stocks since 2005.

“If we have already moved past peak earnings uncertainty, this could set the stage for additional upside and potential multiple re-rating, especially among more beaten-up cyclical sectors,” commented Citigroup strategist Beata Manthey regarding European stocks, as quoted by Bloomberg.

From underdogs to frontrunners

This bullish outlook represents a significant turnaround from the sentiment prevailing at the beginning of the year, when strategists widely expected European stocks to lag considerably behind the US market.

However, the European benchmark has since rallied, propelled by historic fiscal reforms in Germany and surprisingly resilient corporate earnings.

These factors have attracted investors seeking alternatives to US assets, which have been caught in the crosscurrents of ongoing trade wars.

Evidence of this shifting sentiment was clear in a Bank of America Corp. survey published a week ago, which found that a net 35% of global fund managers are now overweight European stocks.

Conversely, net exposure to US stocks has reportedly dwindled to its smallest level in two years.

Further bolstering the case for Europe, MSCI Europe constituents posted a 5.3% increase in first-quarter earnings, significantly outperforming the 1.5% decline anticipated by analysts, according to data compiled by Bloomberg Intelligence.

Additionally, a Citigroup index indicates that fewer analysts have downgraded European earnings estimates in recent weeks.

In the US, the picture is far less optimistic.

A separate Bloomberg poll found that forecasters expect the S&P 500 to end the year at an average of 6,001 points, roughly unchanged from its recent closing levels.

Valuation considerations and lingering cautions

To be sure, this year’s 8.3% rally in the Stoxx 600 has brought valuations into sharper focus.

The benchmark now trades at approximately 14.6 times earnings, a figure higher than its 20-year median of 13.5, as per Bloomberg data.

However, this is still considerably lower than the S&P 500’s price-to-earnings ratio, which stands at nearly 22.

Goldman Sachs Group Inc. strategist Sharon Bell expressed her expectation that investors will continue to reallocate capital to the European region, citing its lower relative valuations and the high concentration risk in the US market.

“We also note that inflation should moderate further in Europe this year and there is a close relationship between lower inflation and higher average valuations,” she wrote in a recent note.

Despite the overall optimism, not all strategists are uniformly bullish.

Bloomberg’s poll revealed that only six firms—Bank of America, Deka Bank, ING, Panmure Liberum, Societe Generale SA, and TFS Derivatives—expect the Stoxx 600 to decline by more than 2% from Friday’s close.

Societe Generale strategist Roland Kaloyan indicated he needs to see stronger earnings trends and a further reduction in tariff-related risks before betting on a significant rally in the Stoxx 600.

His year-end target of 530 implies a potential 3.5% drop.

“The uncertainty surrounding tariffs further complicates the outlook, as many firms are reluctant to provide clear guidance, indicating that the full impact of these tariffs may not yet be captured in earnings forecasts,” Kaloyan stated.

Echoing a note of caution, UBS Group AG strategist Gerry Fowler acknowledged that valuations have increased as anticipated amid forecasts of stronger economic growth over the next two years.

However, he added, “For further gains, we must get through a period of regime uncertainty that will probably keep EPS growth at zero or modestly lower this year.”

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European stock markets commenced Tuesday’s trading session with a cautiously optimistic tone, as major indices posted modest gains.

This positive sentiment was primarily fueled by an anticipated rate cut from China, aimed at bolstering its economy, and tentative hopes surrounding potential peace talks to resolve the long-standing conflict in Ukraine.

Approximately 19 minutes after the opening bell, the pan-European Stoxx 600 index was trading up by 0.2%.

Sector performance was mixed, though regional utilities stocks notably led the gains. At 03:05 ET (07:05 GMT), specific national bourses reflected this gentle upward trend: Germany’s DAX index climbed 0.2%, France’s CAC 40 also gained 0.2%, and in the UK, the FTSE 100 rose by 0.3%.

Later readings showed London’s FTSE 100 maintaining a 0.2% gain, with the French CAC 40 up 0.1% and the DAX little changed, indicating a slight moderation in early momentum.

Monetary easing and inflationary calm

European stock indices found a solid lead from positive trading in Asia overnight.

A key driver was the decision by the People’s Bank of China to cut its benchmark loan prime rate, pushing it further into record low territory.

This move signaled Beijing’s willingness to deploy further monetary stimulus to support the world’s second-largest economy, which also serves as a crucial export market for many prominent European companies.

Adding to the global easing theme, the Reserve Bank of Australia also cut interest rates earlier on Tuesday, citing increasing risks to the Australian economy stemming from global trade uncertainty.

Market participants are now looking ahead to the European Central Bank’s next meeting in June, where it is widely anticipated to cut interest rates once more.

The ECB has already eased monetary policy seven times over the past year. Inflation does not currently appear to be a significant impediment to further easing, particularly if German factory prices offer any indication.

Data released earlier on Tuesday showed that the German producer price index fell by 0.6% month-on-month in April, resulting in an annual decrease of 0.9%.

Glimmers of hope for Ukraine peace?

A significant geopolitical development contributing to market sentiment is the growing hope for a potential peace agreement between Ukraine and Russia, which could bring an end to the conflict that has persisted for over three years.

Ukrainian President Volodymyr Zelenskiy stated on Monday that Kyiv and its international partners were considering arranging a high-level meeting involving Ukraine, Russia, the United States, European Union countries, and Britain, as part of a concerted push to end the war.

Adding a layer of intrigue, US President Donald Trump announced via a Truth Social post following his call with Russian President Vladimir Putin on Monday that “Negotiations between Russia and Ukraine will begin immediately.”

This comes after delegates from the warring nations met in Istanbul last week for the first time since 2022, though that encounter did not result in a truce agreement.

Sterling rises, Vodafone navigates headwinds

In currency markets, the British pound extended its recent gains against the US dollar, trading 0.2% higher at $1.338 as of 6:29 a.m. in London on Tuesday.

This followed a 0.6% rise for sterling against the greenback on Monday, buoyed by the UK and the EU reaching a landmark agreement to reset their post-Brexit relations.

On the corporate front, telecom giant Vodafone reported a full-year operating loss of 411 million euros ($462.7 million) on Tuesday.

The company attributed this loss primarily to impairment charges related to its operations in Germany and Romania, which amounted to 4.5 billion euros.

Despite the loss, Vodafone announced a 2% jump in full-year revenue, with total revenue reaching 37.4 billion euros.

This figure was slightly below analysts’ expectations of 38.1 billion euros, according to LSEG data.

Vodafone shares were trading 0.3% higher at 8:22 a.m. in London, recovering from some initial losses seen immediately after the market opened.

Looking ahead to 2026, Vodafone acknowledged that its financial performance could be impacted by “significant uncertainties” in the current macroeconomic climate, particularly concerning trade and foreign exchange rates.

The company expects its adjusted EBITDAaL (earnings before interest, taxes, depreciation and amortization and after lease expenses) to fall within the range of 11 billion euros to 13 billion euros.

For the full-year 2025, Vodafone’s adjusted EBITDAaL came in at 11 billion euros, consistent with its guidance.

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