The IDEX stock price has been in a strong bearish trend ahead of the company’s earnings scheduled for Monday. Ideanomics share price is trading at $0.7617, which was the lowest level since June 8 2020. It has crashed by over 83% from its highest level in 2021. As a result, the EV conglomerate’s market cap has dropped to about $379 million.
Is Ideanomics undervalued ahead of earnings?
Ideanomics is a relatively small company that owns several businesses in the electric industry. The firm’s portfolio includes companies that manufacture electric tractors, buses, and motorcycles. As a result, its industry explains why the IDEX share price has collapsed recently. In addition, other companies in the industry like Workhorse, Canoo, and Lucid have all crashed in the past few days.
However, some analysts believe that the stock is significantly undervalued. A good way to judge its valuation is to compare it with Liveware, the electric bike company owned by Harley Davidson. The company is set to go public at $2.3 billion.
Livewire had $33 million in total sales in 2021. Most of these results were from the non-vehicle business. This means that Livewire and Energica have a similar valuation considering that the firm generated $7.4 million in sales in 2020.
In addition, Ideanomics owns 50% of Energica. Therefore, there is a likelihood that Ideanomics is undervalued. The next key catalyst for the IDEX stock price will be the upcoming earnings. Analysts expect that the company’s revenue rose to over $33 million in Q1, up from $27 million in the previous quarter.
IDEX stock price forecast
I warned about IDEX in my previous report. The weekly chart shows that the Ideanomics stock price has been moving in a downward trend. First, the stock managed to move below the important support at $0.8103, which was the lowest level since March 21st. It has moved below the 50-week and 25-week moving averages while the Stochastic Oscillator has moved to the oversold level. Finally, the MACD has moved below the neutral level.
Therefore, while Ideanomics could be undervalued, it is likely to continue falling. Besides, the bearish flag pattern is usually a bearish sign. If this happens, the next key support level will be at $0.65.