Luckin Coffee (NASDAQ:LK) news for Friday includes major gains for LK stock, but the reason why isn’t immediately clear.
There’s been no new news from Luckin Coffee that would result in the massive increase to LK stock today. However, the stock also saw loads of movement on Thursday. It looks like the increase on Friday is an extension of that.
Alright, so what exactly happened on Thursday to cause LK stock to take off? It doesn’t appear to be anything the company did. Instead, it looks like investors looking for cheap stocks to pick up set their eyes on the Chinese coffee chain.
LK stock saw tons of movement on Thursday with a total of 29.03 million shares moving between investors. That alone is enough of a reason for the rally and it’s worth noting that exchanges continued into Friday with even more investors trading shares of the stock, reports Benzinga.
It’s also worth mentioning that LK stock has been low for weeks now after its return to the NASDAQ. The company was previously not trading due to fraudulent activity by its COO, which caused its value to plummet.
While fraud is never a good look for a company, it looks like investors might be willing to forgive Luckin Coffee. Prior to the revelation of the scandal, many were expecting it to challenge Starbucks (NASDAQ:SBUX) in China. It could be that investors still have hope for LK stock to do just that.
LK stock was up 36.1% when markets closed on Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.