Why Pony AI Inc. (PONY) Skyrocketed Today

We recently published a list of These 10 Firms Just Beat the Market Today. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against other stocks that skyrocketed today.

Ten companies boasted whopping gains on Tuesday despite a wider market pessimism, as a flurry of corporate developments, including impressive earnings and bullish outlooks, sparked buying appetite.

In contrast, Wall Street’s main indices all finished in the red territory. The Dow Jones was down by 0.27 percent, the S&P 500 dropped 0.39 percent, and the tech-heavy Nasdaq declined 0.38 percent.

In this article, we named the 10 best-performing stocks during the trading session and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

Pony AI Inc. (NASDAQ: PONY)

Chinese firm Pony AI saw its share prices rise by 5.74 percent on Tuesday to close at $17.88 apiece as investors cheered its strong revenue performance in the first quarter of the year.

In its earnings release, Pony AI Inc. (NASDAQ: PONY) said revenues grew by 12 percent to $14 million from $12.5 million registered in the same period last year, thanks to a 200-percent jump in its Robotaxi services.

However, net loss remained higher by 79 percent to $37.4 million as compared with $20.8 million in the same period a year earlier, due to investments in the mass production of Generation 7 vehicles, coupled with one-time expenses related to its initial public offering that was only settled during the quarter, as well as higher employee compensation.

In recent news, Pony AI Inc. (NASDAQ:PONY) partnered with ride-hailing giant Uber Technologies Inc. (NYSE: UBER) to expand and offer its robotaxis in the Middle East through the Uber app.

The two companies also committed to deepening their partnership through expansion into other global markets.

Overall, PONY ranks 10th on our list of today's best-performing stocks. While we acknowledge the potential of PONY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PONY and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.