Why Luckin Coffee Stock, Defying the Downturn, Is Up 10% Today
Don't look now, but Luckin Coffee (NASDAQ: LK) is bouncing back. It lost 17% of its market capitalization on Monday, as rumors increased that the company could be delisted by Nasdaq, and then dropped another 12% Tuesday when the exchange issued it a delisting notice, proving those rumors right. But today, Luckin stock is rebounding with a 10.2% gain as of 12:25 p.m. EDT. And it appears to be doing so on no good news.
Image source: Getty Images.
What's going on here? We've all heard the investing adage to "buy the rumor, sell the news." Well, there may be a converse to that for disaster stories like Luckin, and if so, it might go something like this: "Short the rumor, and close your short when the rumor proves true."
Source Fool.com
