Why XPeng Inc. (XPEV) Went Down On Friday?

We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where XPeng Inc. (NYSE:XPEV) stands against other Friday’s worst performing stocks.

Wall Street’s main indices bounced back on Friday, erasing the entire week’s losses, as investor hopes were fueled by news that no government shutdown is happening.

The tech-heavy Nasdaq jumped the highest on Friday, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, on the other hand, bucked an overall market optimism, posting modest losses during the day.

In this article, we have named the day’s worst performers and detailed the reasons behind their drop.

To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.

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XPeng Inc. (NYSE:XPEV)

XPeng declined by 6.39 percent on Friday to end at $23.73 each as investors disposed of positions in the company to mitigate the risks of the ongoing trade tensions between the United States and China.

Earlier this year, XPEV announced plans to double down on its expansion program and enter 60 markets this year, albeit it remains unclear if the United States would be part of its aggressive expansion program.

“This year, we will increase to 60 and will have established more than 300 after-sales service points worldwide,” XPEV CEO He Xiaopeng said earlier.

Over the next 10 years, he said that the international markets are expected to power its sales.

Overall, XPEV ranks 1st on our list of Friday’s worst performing stocks. While we acknowledge the potential of XPEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as XPEV but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.