The drop is mainly due to the operator of coffee shops being forced to close stores. Overall, though, Luckin is up 91% over the past 52 weeks. So, its supporters are likely to view this slight fall as merely a bump in the road.
With more than 50 million people on lockdown, economists warn China’s efforts to contain the coronavirus outbreak are reverberating through the global economy.
“We’ve been in China for 20 years. We realize that this is a temporary issue that we’ve got to deal with,” Johnson said on “Squawk on the Street.” “We’re doing it responsibly. We’re doing it by prioritizing the health and well-being of our Starbucks partners.”
With the coronavirus outbreak in Wuhan, China, currently having infected nearly 6,000 people worldwide, many investors have started to shy away from Chinese stocks like Luckin Coffee.
Luckin Coffee as of this writing, are up roughly 185% from the IPO price of $17 that the company set in May 2019, largely due to the substantial growth the company has shown over the past several months.
n September, I called Luckin one of the seven worst IPO stocks of 2019, suggesting that the fast-growing allure of China for North American investors was going to come back to haunt them. In the case of Luckin, so far that hasn’t been the case.
This Month: Spotlight on China
It is no longer just Brazil, Vietnam and Colombia. China
Chengcheng Su, Coffee Quality Institute’s Asia and China Coordinator, has