LK - Why Luckin Coffee Stock Surged 50% Today
Shares of Luckin Coffee (NASDAQ: LK) soared on Tuesday, following heavy losses in recent days. As of 3:30 p.m. EDT, Luckin's stock was up more than 50%.
Even after today's gains, Luckin Coffee's stock is still down more than 95% from the highs it reached in January. The Chinese coffeehouse chain's brutal decline came after it said on April 2 that members of its leadership team had fabricated as much as $300 million in sales transactions.
In the weeks that followed, Luckin went on to fire its CEO Jenny Zhiya Qian and chief operating officer Jian Liu, due to their alleged roles in the accounting scandal. The company also received a delisting notice from Nasdaq on May 19, placing its stock's ability to continue to trade on the exchange in question.