Without the coronavirus from China, the narrative around Luckin Coffee (NASDAQ:LK) would be much different. However, coronavirus is our reality right now, and the current selloff has dealt a blow to all growth names, including LK stock.
The stock is down about 50% from the highs it reached in January. The virus’s outbreak began in China, which is not a good situation for a China-based coffee chain. Moreover, the outbreak around the world and the resulting global pandemonium have led to a rout of the stock market. That hasn’t been good for Luckin stock either.