XPEV Should I Buy
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Given the user's long-term investment preference and beginner level, Xpeng Inc (XPEV) is not a strong buy at this moment. While the company has shown some positive developments, such as achieving its first-ever quarterly profit and strong revenue growth, the near-term outlook remains weak with mixed analyst ratings, declining EPS, and technical indicators suggesting a lack of upward momentum. The stock is better suited for monitoring rather than immediate investment.
The MACD is negatively expanding, RSI is neutral at 35.555, and moving averages are converging, indicating no clear bullish momentum. The stock is trading below the pivot level (18.895) and nearing its first support level (17.686), suggesting potential downside risk.
Xpeng achieved its first-ever quarterly profit in Q4 2025, with a 38.2% YoY revenue increase and a 125.9% YoY vehicle delivery growth. Gross margin improved significantly to 21.31%.
Analysts have downgraded the stock multiple times recently, citing weak near-term outlook and higher spending. EPS dropped significantly (-118.75% YoY), and the MACD and RSI do not indicate bullish momentum. The stock's price target has been reduced by several firms.
In Q4 2025, revenue increased by 40.10% YoY, and gross margin improved by 47.58% YoY. However, net income dropped by -129.21% YoY, and EPS declined by -118.75% YoY, reflecting profitability challenges.
Analysts are mixed, with recent downgrades from Barclays, Macquarie, and US Tiger citing weak near-term outlooks and higher spending. However, Citi and Bernstein remain cautiously optimistic, highlighting gross margin improvements and potential volume recovery.
