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Li Auto - AI Stock Analysis

Analysis generated July 28, 2024

Li Auto Inc. (NASDAQ: LI), a leader in China's new energy vehicle sector, specializes in developing smart and efficient electric vehicles (EVs). The company's primary product, the Li ONE, is a premium electric SUV equipped with range-extension technology. Li Auto is known for its continuous innovation and its focus on intelligent features, making it a strong contender in the rapidly growing EV market.

Fundamental Analysis

Revenue for the last quarter was ¥41.7 billion. This is equal to the revenue of the quarter before it, indicating stable financial performance. Compared to the same quarter last year, revenue has increased by 136.44%, showcasing impressive year-over-year growth. This surge is a strong positive signal for potential investors as it demonstrates the company's ability to scale its operations effectively.

Net income for the last quarter was ¥5.66 billion, consistent with the net income of the previous quarter, indicating stability. Notably, this represents a whopping year-over-year increase of 2,102.12%, which is remarkable and highlights strong operational efficiency and profitability improvements.

The EBITDA for the last quarter was ¥4.19 billion, showing no change compared to the previous quarter. However, compared to the same quarter last year, there is an increase of 1,925.34%. This strong year-over-year growth evidences improved earnings strength and operational performance.

Li Auto's current Price/Earnings (P/E) ratio is 12.93, which falls within a normal range, suggesting that the stock is reasonably valued. This P/E ratio signals neither overvaluation nor undervaluation, providing a balanced perspective for investors.

Technical Analysis

Today's stock price is USD 19.14, a 7.05% increase from a month ago, indicating a positive short-term trend. However, over the long term, the stock has experienced a decline of 55.20% compared to a year ago, raising concerns about its long-term prospects.

The stock's Simple Moving Average over the last 10 days (SMA10) is 19.46, which is lower than the previous SMA10 of 19.56. This suggests a potential downward trend in price movement, indicating caution for short-term traders.

The Relative Strength Index (RSI) is 41.7, indicating a neutral condition. An RSI close to 50 typically indicates that the stock is neither overbought nor oversold, providing no clear signals for trend direction.

Alternative Data Analysis

Job postings at Li Auto have decreased by 9% in the last couple of months, signaling the company's intent to improve margins or cut costs. For a growing company, this might be concerning as it suggests a potential slowdown in expansion or resource allocation.

The business outlook among employees at Li Auto is neutral, indicating neither strong optimism nor pessimism about future prospects. This neutrality could imply stabilizing operational conditions but might also reflect cautious sentiment amid market uncertainties.

Li Auto's website has seen an estimated 810,000 visitors, down by 22% in the last couple of months. This decline in web traffic is a concerning trend as it might indicate a potential loss in customer interest or engagement, which could affect future sales and revenue growth.

On a positive note, Li Auto's Instagram page has gained 4,500 followers, showing a 7% increase in the last couple of months. This rise in social media followers points towards growing interest and engagement from potential customers and fans.

AltIndex's AI score, which predicts a company’s stock price based on a combination of fundamental, technical, and alternative data analysis, gives Li Auto a score of 65, which is a buy signal. This AI recommendation suggests a positive outlook for the stock based on integrated data analysis.

Conclusion and Recommendation

In conclusion, Li Auto showcases a strong fundamental performance with exceptional year-over-year growth in revenue, net income, and EBITDA. From a technical perspective, while short-term trends appear positive, long-term trends raise some concerns. Alternative data presents a mixed picture, with declining web traffic and job postings but increasing social media engagement and a neutral employee outlook.

Given the robust fundamental indicators and the AI recommendation score of 65, Li Auto seems to present a promising investment opportunity. However, potential investors should be mindful of the mixed technical and alternative data signals, and consider these factors in their investment decisions. Overall, Li Auto is recommended as a buy with caution, taking into consideration both its stellar financial performance and the need to monitor ongoing trends.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.