LK - Why Luckin Coffee Stock Rocketed Higher Today
Shares of Luckin Coffee (NASDAQ: LK) surged on Friday, continuing the stock's incredible ascent off its lows. By the close of trading, Luckin's stock was up 36% after rising as much as 67.7% earlier in the day.
The Chinese coffeehouse chain is besieged by scandal. The company disclosed on April 2 that it had fabricated as much as $310 million in sales from the second quarter of 2019 to the fourth quarter. On May 12, it terminated its CEO and chief operating officer for their alleged roles in the accounting scandal.
The news would only get worse. On May 19, Luckin disclosed that it received a delisting notice from Nasdaq, placing its stock's ability to continue trading on the stock market in question. Luckin's stock would go on to hit an all-time low of $1.33 on May 22, representing a brutal decline of more than 97% from its all-time high back in January.