LK - 3 Reasons to Sell Luckin Coffee
Are you interested in buying Luckin Coffee (NASDAQ: LK) stock? If so, you might want to reconsider that investment. The controversial Chinese coffee shop has seen its share price fall by around 94% year to date because of massive accounting fraud that saw the company fake up to $310 million worth of sales transactions in 2019. The scandal has sent Luckin's market cap from $12.7 billion in January to around $590 million in early June, and the stock now trades at around $2.50 per share, which is less than 1/10th its earlier valuation.
While that price might look cheap to some investors, it isn't. Here are three reasons why Luckin Coffee stock could fall even further.
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