Canoo Stock Price and Forecast: Attention, Army and Walmart like GOEV

Canoo (GOEV) is based in Torrance, California, and makes electric vehicles for commercial markets in the US. The company has already been in the news this week as a deal with Walmart was announced. Folks who bought on that news are now really happy as GOEV stock got a further boost on Thursday when Canoo was selected by the US Army for a contract. The stock had been struggling this year in the current macro environment and is down 43% year to date. This recent spate of positive news has seen GOEV stock move from $1.88 to $5 in the last few trading sessions.

Canoo stock news

Things can change quickly in the world of finance as we know from watching inflation expectations this week alone. It was only two weeks ago that Canoo fell to a record low as worries about liquidity surfaced. The company was forced to issue a going concern warning on May 11, and further concerns led to the stock falling to a record low of $1.75 only last week. Things quickly turned around for the name, however, when it announced that Walmart (WMT) had selected it to supply 4,500 electric delivery vehicles with an option to buy up to 10,000 vehicles. The agreement also includes a clause not to sell any vehicles to Amazon (AMZN). 

"We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities,” Canoo CEO Tony Aquila said.

The deal with Walmart now looks more like a possible investment for the retail giant, as SEC filings show that Walmart has received warrants to buy nearly 62 million shares for $2.15 per share. At current GOEV stock prices of $4.61 that is now looking good for Walmart. 

Adding to the good news was the US Army awarding Canoo a contract to supply an EV for analysis and demonstration.

Canoo stock forecast

An impressive bit of news flow and an impressive move up in the share price of Canoo, but massive resistance now sits overhead at $6. We can see huge volume at that level, and also it is the point of the 200-day moving average, so that will likely be tough to break. There is some interim support at $3.70 from old highs, but the real support is at the breakout level nearer $2.85 to $3. We also have the 50-day moving average here as well. I favor a move lower from here or fading an extension up to $6.

GOEV stock chart, daily