TAL - Could GSX Techedu Be the Next Luckin Coffee?
The collapse of Luckin Coffee (NASDAQ: LK), the Chinese coffee chain which recently admitted its sales figures were inflated, caused short-sellers to hunt down other high-flying Chinese stocks with questionable business models. One of those stocks is GSX Techedu (NYSE: GSX), an online education company that gained a lot of attention as the COVID-19 epidemic swept across China.
Back in February, Grizzly Research claimed that GSX was inflating its revenue and student numbers. Earlier this month, Citron Research issued a similar report, calling it the "most blatant stock fraud since 2011." Both firms claimed that GSX's reported numbers were simply "too good to be true."
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