FFIE Stock: Faraday Future is on alert ahead of earnings release this afternoon

One of this quarter’s biggest breakout stocks is about to report fourth-quarter 2023 earnings. Faraday Future Intelligent Electric (NASDAQ:FFI) is the undisputed winner of the recent meme stock rally. After months of losing value and seeing its price drop as low as $0.040 per share, the micro-cap electric vehicle (EV) maker rose from retail trading thanks to unexpected momentum. The heat of the rally has since cooled, but FFIE stock remains significantly higher, trading comfortably above $1 per share. That may not seem like much, but it’s notable considering how low it was just a few weeks ago.

Faraday Future is now preparing to announce its earnings after the market closes today. The results will have a significant impact on the company’s growth prospects in the second half of the year. Investors should follow this report closely.

What happens to FFIE shares?

As mentioned, FFIE is up today, but not by much. At the time of writing, it is up about 3% after consistent intraday volatility. This is consistent with last week’s trading, which saw shares fall 20% from their rally-fueled highs. Now, however, the fourth-quarter earnings report is fast approaching, and with it, market judgment day for this new meme stock.

Faraday Future’s earnings call is scheduled for 8 p.m. EDT today. FFIE stock will likely end trading higher today, but if it misses Wall Street estimates, it could mean the end of the company’s winning streak. There are several factors to consider that could negatively impact the company in the coming months. Electricvehicles.com Reports:

“Despite a year-to-date increase of 291.21 percent, the stock is still down 94.93 percent from a year ago. The company is currently contesting a delisting notice from Nasdaq after shares traded below $0.10 for ten consecutive days. An appeal initiated in early May resulted in a temporary suspension of the securities that ended on May 16.”

A problematic EV stock

These are just some of the reasons why experts have labeled Faraday Future a troubled EV stock that investors should sell before it follows the path of the also-struggling automaker. Fisherman (OTCQB:FSRN). FFIE stock receives little analyst attention, likely because it is a small-cap penny stock and until recently didn’t look like it could get anywhere near $1 per share.

Regardless, investors should brace for trouble if Faraday’s earnings report shows that the company’s problems are worse than expected.

On penny stocks and low-volume stocks:With very few exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or that trade fewer than 100,000 shares per day. That’s because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever publish a commentary on a low-volume stock that may be affected by our commentary, we require that InvestorPlace.com writers disclose that fact and warn readers of the risks.

Read more:Penny Stocks – How to profit without being cheated