QS Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
QuantumScape Corp is not a strong buy for a beginner, long-term investor at this moment. The stock has significant risks due to weak financial performance, bearish technical indicators, and mixed analyst sentiment. While the company has made technological advancements and added key customers, the lack of profitability, high cash burn, and limited visibility into revenue streams make it a high-risk investment. Given the user's preference for long-term stability, it is better to hold off on investing in QS until there is more clarity on its financial and operational progress.
The technical indicators for QS are bearish. The MACD is negatively expanding, RSI is neutral but close to being oversold, and the moving averages indicate a downward trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 8.694, with key support at 7.42 and resistance at 9.48.
QuantumScape achieved a 25-fold increase in ceramic processing speed for solid-state batteries, enhancing its technological edge.
The company added two large global automotive OEMs as customers, projecting $20 million in billings for
Hedge funds are significantly increasing their positions, with a 294.40% increase in buying over the last quarter.
The company reported a Q4 loss of $0.17 per share, with net income dropping 12.70% YoY.
Analysts have downgraded the stock, citing valuation concerns and limited visibility into revenue streams.
The stock declined over 10% following its Q4 results, reflecting investor concerns about its financial performance.
High capital expenditures and projected losses for 2026 add to the risk.
In Q4 2025, QuantumScape reported zero revenue, a net income loss of $100.1 million (down 12.70% YoY), and EPS of -0.17 (down 22.73% YoY). The company ended the quarter with $970.8 million in liquidity but continues to burn cash heavily.
Analysts have a mixed to negative outlook on QS. Recent ratings include downgrades from Evercore ISI and HSBC, citing valuation concerns and limited revenue visibility. Price targets range from $10.50 to $12, with a Neutral or Reduce rating from most analysts. The consensus reflects balanced risk/reward but highlights significant downside risks.
