Why are GBS (GBS), Lucid (LUCID) stocks grabbing attention today?

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Why are GBS (GBS), Lucid (LUCID) stocks grabbing attention today?

 Why are GBS (GBS), Lucid (LUCID) stocks grabbing attention today?
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Highlights

  • The stock value of Lucid Group, Inc. (NASDAQ: LCID) rose 98.8% YTD.
  • The GBS Inc. (NASDAQ: GBS) stock plunged 56.91% YTD.
  • Lucid reported a net loss of US$588.82 million in the quarter ended June 30.

Stocks of biotechnology firm GBS Inc. (NASDAQ: GBS) and electric vehicle maker Lucid Group, Inc. (NASDAQ: LCID) were drawing investors’ attention on Wednesday.

GBS stock was up 45.68% to US$4.72 from its previous closing price at 9:30 am ET, while the LCID stock fell 12.83% to US$17.399 at 9:44 am ET.

Analysts believe the biotechnology company’s lower share value may be drawing investors’ attention to the stock. On the other hand, the EV maker has been in the limelight after its Nasdaq debut on July 26 following a SPAC deal with Churchill Capital Corp IV.

GBS had raised US$21.6 million from its Initial Public Offering (IPO) in December 2020.

Here we explore some of the key financial stats of the two companies.

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GBS Inc. (NASDAQ: GBS)

The New York-based company develops diagnostic tests for diabetes and Covid-19.

In Q4, ended June 30, 2021, the company reported a preliminary net loss of US$8.5 million or US$0.68 per share, compared to a net loss of US$3.16 million or US$0.37 apiece in the year-ago period. Its liquidity reserves were US$12.7 million in the quarter. GBS has a market cap of US$53.72 million. The stock fell 56.91 percent YTD. GBS’ 52-week highest and lowest stock prices were US$14.24 and US$2.44. Its trading volume on August 31 was 148,919.

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Lucid Group, Inc. (NASDAQ: LCID)

This electric vehicle maker is based in California. The stock witnessed several ups and downs in recent times. However, it has been in the limelight since its Nasdaq debut on July 26.

The auto company executed a SPAC merger with Churchill Capital Corp IV on July 23. Lucid’s PIPE investors were blocked from selling shares till September 1 due to the lock-up period.

The company’s operating loss for the quarter ended June 30, 2021, was US$0.56 million, compared to US$3.09 million in the year-ago quarter. Its net income was a loss of US$588.82 million, compared to US$871.80 million in the same quarter of the previous year.

Lucid reported a basic EPS loss of US$2.28 per share, excluding extraordinary items, compared to a loss of US$3.33 per share in the June quarter of 2020.

The California-based firm has a market cap of US$29.51 billion. The stock rose 98.8 percent YTD. Lucid’s 52-week highest and lowest stock prices were US$64.86 and US$9.60, respectively.
Its trading volume on August 31 was 11,454,700.

The company plans to showcase its products to the public at its Casa Grande plant in Arizona on September 27.

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Bottomline

While GBS Inc’s innovations are helping attract new customers, the EV market boom is helping Lucid gain a foothold in the market. Analysts expect the sectors to grow rapidly in the coming years as both the segments are receiving major government budgetary support as part of its rebuilding plan for the economy.

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