One way to make money on stocks for which the price is falling is called short selling (also known as "going short" or "shorting"). Short selling sounds like a fairly simple concept in theory—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are wagering that the stock they are short selling will drop in price. Read More...
Motley Fool
Nio Is Now Down 58% From Its High. Is It a Buy?
Shares of Nio (NYSE: NIO) set their all-time high back on Jan. 11, when they traded at $66.99 at some point during the day. Clearly it has been a rough year for Nio, which has been hit by COVID-19 shutdowns, supply chain challenges, and a lull in its new-product cycle that allowed competitors to gain ground. Nio will begin shipping its long-awaited ET7 sedan in March, followed in September by the one-size-down ET5, which was revealed on Saturday. Meanwhile, its order books remain strong, its customer satisfaction is high, and there are signs that it may have put the worst of the supply chain woes in the rearview mirror.
