Jun. 27 at 9:57 AM
$WRD At least we closed in green on Friday. Let’s hope this is the start of a summer run up.
As to why the huge drop? It’s not directly WeRide related. They’ve been on a winning streak, with a Zurich Uber announcement, a 6th consecutive win in the D1EV intelligent driving competition, amongst other things.
This huge sell offs fits classic end-of-quarter behavior: fund managers rebalance portfolios, lock in gains, and reduce crowded positions before quarter-end reporting. That seasonal effect likely amplified the sell off once the AI-spending narrative turned negative.
This was less about one single bad headline and more about a combination of high expectations, expensive valuations, and rising doubt about AI returns.
For Chinese tech, the move was magnified because investors also see it as part of the same global AI and semiconductor trade, just with additional geopolitical and policy risk layered on top.
Good news is, it can easily bounce back as fast as it dropped.
