VinFast Stock Plunges Without Clear Reason
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A woman stands next to a display at a VinFast launch ceremony in Hanoi on July 7.
Nhac Nguyen/AFP via Getty Images
Shares of VinFast Auto Plunge
- VinFast (VFS) stock closed down almost 27% Thursday, at just below $18 a share
- S&P 500 and Nasdaq Composite were off 0.3% and 0.9%, respectively
- Shares have dropped seven consecutive days, wiping out some $150 billion in market value
Unexplained Swings and Volatility
- Shares of VinFast stock have experienced wild swings without any particular news to explain the moves
- Traders are attracted to the volatility of VinFast stock
- Shares have moved up or down an average of 40% a day since the stock symbol changed
Valuations and Analyst Coverage
- VinFast is trading at about 22 times potential 2023 sales
- Comparatively, Lucid (LCID) sells for about 14 times and Rivian Automotive (RIVN) for about four times
- No analyst covers the VinFast stock
Uncertain Future
- Wall Street’s outlook for VinFast remains uncertain
- Technical analysis is not helpful in understanding the stock’s behavior
- Analyst ratings and more useful data are expected in the coming months
Write to Al Root at [email protected]
