Should I Buy Luckin Coffee Stock?
When a company gets hit by a scandal and its stock plummets, your first instinct may be to sell and cut your losses. It's to come to that conclusion about Luckin (NASDAQ: LK) a fast-growing coffee chain in China that has admitted that its COO fabricated sales by about $310 million.
It's disturbing news from a company that has spent heavily to battle Starbucks (NASDAQ: SBUX) in China. Despite that, it's important to take a step back and evaluate what has happened, how the company has handled it, and where it might go next.
Luckin has launched an investigation. Image source: Getty Images.
Source Fool.com
