QuantumScape: Sell QS Stock Ahead of Its Earnings?

Core Insights - QuantumScape, a company focused on developing solid-state batteries, is set to announce its earnings on October 22, 2025, despite being pre-revenue [2] - The company reported an operating loss of $506 million and a net income loss of $463 million, with a current market capitalization of $8.6 billion [3] Historical Performance - Over the past five years, QuantumScape's stock has experienced a negative one-day return in 67% of cases following earnings announcements, with a median negative return of -6.4% and a maximum one-day negative return of -17.1% [4] - In the last five years, there have been 18 documented earnings data points, with 6 positive and 12 negative one-day returns, resulting in a 33% occurrence of positive returns, which drops to 25% when considering the last three years [8] Trading Strategies - Traders can adopt pre-earnings positioning by evaluating historical probabilities and establishing positions before earnings announcements, as well as post-earnings positioning by analyzing the relationship between immediate one-day returns and subsequent medium-term returns [7] - A less risky strategy involves analyzing the correlation between short-term and medium-term returns following earnings to execute appropriate trades based on the highest correlation observed [9]