Luckin Coffee’s Rapid Growth Justifies A Higher Stock Price


On Jan. 31, 2020, notable short-seller Muddy Waters posted a short position against Luckin Coffee (NASDAQ:LK). The investor accused the company of inflating its item sales count per store. LK stock largely brushed off the bearish attack. And Luckin’s assertive response to the report only strengthened investor confidence in the company’s prospects.

The high-quality coffee provider issued a rebuke against the short seller. It said that “the methodology of the Report is flawed, the evidence is unsubstantiated, and the allegations are unsupported speculations and malicious interpretations of events.”

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