Luckin Coffee (NASDAQ:LK) suffered a sharp drop alongside a slew of other Chinese equities in recent days. But is LK stock’s overall uptrend in jeopardy? And are fears of coronavirus enough to upend what has been one of the best performing momentum stocks on the Street?
First off, who knew a coffee stock could be so exciting? Luckin Coffee was volatile from the get-go (the initial public offering was just last May), but the party didn’t really start until November’s earnings announcement lit a fire under LK stock. Since then, shares of the China-based coffee shop chain have nearly tripled in value.