Qudian (NYSE:QD) is up more than 50% today after the Chinese company announced a positive update for its ready-made food business. The company said it held a successful sales event hosted on ByteDance’s Douyin app over the weekend, and the news has sent QD stock up sharply today.
The consumer finance company’s New York-listed shares are getting a big bounce higher today. However, they trade deep down in the penny stock league tables at $1.80 per share. Still, QD stock is now up more than 80% year-to-date.
What Happened With QD Stock
In a news release, Qudian provided a detailed update for its ready-to-cook meal business that operates as QD Food. In the update, Qudian said it now has 15 warehousing, assembly and packaging facilities, delivering products to more than 200 cities and towns throughout China.
The company added that consumers in China can now place orders through Douyin, QD Food’s mini-program on Tencent’s (OTCMKTS:TCEHY) WeChat and the QD Food App available for smartphones. It currently offers at least 10 dishes that are popular with its customers.
QD Food is Qudian’s latest strategic venture, so the update on its progress is being received favorably by investors. The company also said that on July 17, it hosted a livestreamed food festival on Douyin that introduced its products to millions of viewers and led to sales of 9.56 million dishes. The event was ranked number one on the app. News of this event’s success has also drawn positive sentiment from investors, who are bidding up the stock today.
Why It Matters
The business update provides investors with important information about Qudian’s biggest business unit. It shows the company is making significant progress in terms of expanding its operations and sale. Investors see this news as a positive and encouraging development, which is why QD stock is marching higher today.
The increase in the share price is welcome given that QD stock trades below $5. Getting the share price out above the penny stock threshold is a goal of Qudian, and today’s big move higher helps. The business update shows the company is making significant progress in terms of developing its operations and that progress is leading to enhanced sales, which aids the bottom line.
What’s Next for QD Stock
QD stock is a big mover today and trending on social media. While positive, the company will need to show investors that it can continue to grow its operations and sales over a sustained period if it hopes to keep its share price trending higher and appreciating in value for shareholders.
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On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.