Is Luckin Coffee's Post-Earnings Surge Sustainable?
Luckin Coffee's (NASDAQ: LK) stock recently hit a new high after the Chinese coffee chain posted its third-quarter report. Its revenue soared 558% annually to 1.49 billion yuan ($209 million), matching analysts' expectations.
On the bottom line, its GAAP net loss widened from 485 million yuan to 532 million yuan ($74 million). On a non-GAAP basis (which excludes its stock-based compensation expenses), its net loss widened from 484 million yuan to 491 million yuan ($69 million), or $0.32 per share, which beat expectations by six cents.
Luckin's stock is now nearly 60% above its IPO price of $17, but it's been a battleground stock in the six months since its public debut. The bears claim that its growth is unsustainable since it's expanding too aggressively and its losses are widening.
Source Fool.com
