To The Moon

Hi Tigers 👋

It’s currently peak global earnings season, and several companies have just released results that triggered major stock moves. Some surged 15%, some jumped in after-hours trading, while others plunged more than 15%.

Today, let’s break down several of the most closely watched earnings reports in the market:

• EV maker: $NIO Inc.(NIO)$

• Battery leader: $Contemporary Amperex Technology Co.,Ltd.(300750)$

• AI chip player: $Broadcom(AVGO)$

• Consumer brand: $Lululemon Athletica(LULU)$

Let’s take a closer look at which companies delivered strong upside surprises and which are starting to show signs of pressure.

1. 🚗 NIO: Shares Surge After Earnings

Company: $NIO Inc.(NIO)$ Release time: March 10 (after market close)

After the earnings announcement, the stock surged around 15%, making it one of the most closely watched names in the EV sector that day.

Key Figures

• Q4 Revenue: RMB 15.0B (Market expectation: RMB 14.5B) ✅

• Q4 Deliveries: ~50,000 vehicles (+20% YoY) ✅

• Gross Margin: 12.8% (Q3: 10.7%) ✅

• Q1 Delivery Guidance: 55,000–60,000 vehicles (Market expectation: ~52,000) ✅

Overall, the key themes of this earnings report can be summarized as:

Growth + Cost Improvements.

Four Key Highlights

1. Cost Control Is Starting to Show Results

NIO is rolling out its second-generation vehicle platform, and scaled production has led to noticeable cost reductions.

The company disclosed that:

Manufacturing cost per vehicle declined by about 8%.

For an EV company still in its expansion phase, cost control is crucial because it directly impacts gross margins.

2. Battery-Swap Network Continues to Expand

NIO’s biggest differentiator remains its battery-swap ecosystem.

So far, the company has built:

More than 1,800 battery swap stations across China.

This improves energy replenishment efficiency and enhances customer loyalty.

While the battery-swap model has been debated by the market, from a user-experience perspective it has clearly created a competitive moat.

3. Strong Growth in Overseas Markets

The company’s expansion in Europe is beginning to show results.

According to the earnings report:

European deliveries increased about 150% year-over-year.

Although the base remains relatively small, globalization remains an important long-term growth driver for NIO.

4. Positive Signals in Cash Flow

Another important improvement investors are watching is:

Operating cash flow has turned positive.

For EV companies, this usually means:

Sales growth + cost control are gradually improving financial health.

Management Outlook

CEO William Li stated during the earnings call:

“2026 will be the first profitable year for NIO, and the company aims to achieve full-year profitability in 2026.”

The company also aims to further improve margins over the next several quarters and achieve profitability in certain quarters.

2. 🔋 CATL: Battery Giant Keeps Printing Profits

Company: $Contemporary Amperex Technology Co.,Ltd.(300750)$ Release time: March 9

After the earnings release:

• A-shares rose about 6%

• Hong Kong shares gained about 10%

Key Financial Data

• 2025 Net Profit: RMB 72.2B (+35% YoY)

• Revenue: RMB 400.9B (+28% YoY)

• Average Daily Profit: ~RMB 198M

• Cash Reserves: Over RMB 300B

These numbers highlight one clear fact:

CATL remains one of the most profitable companies in the global EV supply chain.

Three Key Takeaways

1. Global Market Share Still Leading

According to company disclosures:

CATL holds around 37% global market share in power batteries, maintaining its No.1 position globally.

Major customers include:

• Tesla

• BMW

• Volkswagen

2. Continued Technological Development

The company is focusing on two key battery technologies:

• Sodium-ion batteries

• Shenxing ultra-fast charging batteries

Fast charging and lower-cost batteries could become major industry trends in the future.

3. Extremely Strong Cash Flow

CATL currently holds more than RMB 300B in cash reserves, leading many institutions to call it the “cash cow” of the EV industry.

The company also announced a large-scale dividend plan to return capital to shareholders.

What Do Institutions Say?

Some of the latest analyst views include:

• CLSA: Target price HK$710, reiterates Buy

• China International Capital Corporation: A-share target RMB 420, maintains Outperform

3. 🤖 Broadcom: AI Demand Remains Strong

Company: $Broadcom(AVGO)$

Broadcom’s earnings once again highlight a key trend:

Demand for AI infrastructure remains extremely strong

Key Data

• Q3 AI Revenue: $5.2B (Market expectation: ~$5.1B) ✅

• Q4 AI Revenue Guidance: $6.2B (Above expectations) ✅

Following the earnings release:

Shares rose about 5% in after-hours trading.

Why Is AI Growth So Strong?

One of Broadcom’s core businesses is custom ASIC chips.

These chips are used in data centers of major tech companies, such as:

• Alphabet (including ecosystems related to Google TPU)

As AI models continue to scale rapidly, demand for data-center computing power and networking chips is also rising quickly.

4. 🧘 Lululemon: Pressure Emerging in Consumer Spending

Company: $Lululemon Athletica(LULU)$ Release time: March 10 (after market close)

After the earnings release:

The stock plunged more than 15% in after-hours trading.

Key Figures

• Q4 Revenue: $2.38B (Below expectations)

• Same-store sales growth: 3% (Expectation: 5%)

• Full-year guidance: Lowered again

This marks the second time the company has lowered its annual outlook.

Why Did the Market React So Strongly?

There are three main reasons.

1. Intensifying Competition in North America

Competition among athletic apparel brands is becoming increasingly intense, including:

• Nike

• Alo Yoga

2. Consumer Spending Is Slowing

With higher interest rates, U.S. consumers are becoming more cautious with discretionary spending

3. Declining Inventory Turnover

Inventory management pressure is also starting to appear.

Some technical investors believe the stock may test support near $280.

However, whether this level forms a bottom will depend on future earnings performance.

5. 📊 Upcoming Earnings to Watch

Several important companies will report earnings later this week.

March 12

• DocuSign

• Oracle

March 13

• Adobe

In addition, the market is waiting for storage-chip company Micron Technology to provide updated guidance on AI demand.

🐯 Three Questions for Tigers

1️⃣ After this earnings report, is NIO’s rally the start of a trend reversal or just a short-term rebound?

2️⃣ In the AI chip space, do you prefer Broadcom or NVIDIA?

3️⃣ After Lululemon’s sharp drop, would you buy the dip or stay on the sidelines?

Feel free to share your thoughts in the comments 👇

Let’s see which earnings stocks Tigers are watching most closely lately.

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