5 Best Stocks Under $50 According to Billionaire Ray Dalio

2. NIO Inc. (NYSE:NIO)

Bridgewater Associates’ Stake Value: $112,060,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.45%

Share Price as of June 27: $22.95

Number of Hedge Fund Holders: 26

On June 9, NIO Inc. (NYSE:NIO) announced earnings for the first quarter of fiscal year 2022. The company’s revenue for the quarter came in at $1.56 billion, up 24.2% year over year, and beat expectations by $80 million. The Chinese EV manufacturer also reported that it delivered over 25,700 vehicles in Q1 2022, which included roughly 4,300 ES8s, 13,600 ES6s, 7,640 EC6s, and 163 ET7s. The company’s vehicle deliveries grew by 28.5% year over year and 2.9% quarter-on-quarter. NIO Inc. (NYSE:NIO) also guided to increased vehicle deliveries in the second quarter and said that it expects to deliver up to 25,000 vehicles in Q2 2022, which implies a 14.2% year-over-year increase.

On June 21, Citi analyst Jeff Chung cut his price target on NIO Inc. (NYSE:NIO) to $41.10 from $87 but maintained a Buy rating on the shares. The analyst views total returns of 98% from NIO Inc. (NYSE:NIO) shares regardless of his lowered price target on the stock.

In the first quarter of 2022, Bridgewater Associates raised its stakes in NIO Inc. (NYSE:NIO) by 74%, bringing them to $112.06 million.

At the end of Q1 2022, 26 hedge funds were long NIO Inc. (NYSE:NIO) with stakes worth $716.09 million. This is compared to 30 hedge funds in the previous quarter with stakes worth $813.67 million.

Here is what Horos Asset Management had to say about NIO Inc. (NYSE:NIO) in its recently published first-quarter 2022 investor letter:

“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”