Luckin Coffee stock has started trading again. Its price dropped around 35.76% yesterday, fearing investors the company might be delisted in Nasdaq after the financial misconduct accusation.
The coffee chain fired its CEO, Jenny Zhiya Qian, and COO Jian Liu. Luckin Coffee requested a hearing with Nasdaq, which is expected to occur between 30 to 45 days after the request.
Would You Invest Luckin Coffee Stocks Now?
Now that the business is on the rocks, and its stock price is in a considerable drop (from $50 in January to $2.79 today) is it a good time to invest in Luckin Coffee stocks?
According to Bloomberg, “Luckin Coffee, founded in 2017, raised $645 million in its U.S. IPO last year and counted BlackRock Inc. among its backers. Its strategy against Starbucks was to open more stores in two years than the Seattle-based heavyweight has in two decades.”
Can the “Starbucks of China” overcome this big trouble in this pandemic period? Perhaps, luck can tell.