Uxin Ltd (NASDAQ: UXIN) has been an incredibly interesting stock to follow as of late. After seeing declines through November and into the beginning of December, the stock has seen some overwhelmingly strong gains in recent sessions, and those gains are continuing today. Now the question is, “Is it time to get involved?” Today, we’ll talk about:
- Why UXIN has been riding a roller coaster;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why UXIN Has Been On A Roller Coaster Ride
As mentioned above, Uxin has seen some pretty interesting movement in the market as of late. The company fell through November and into the beginning of December before making a strong recovery recently. So, what’s the deal?
Well the recent declines happened for a very good reason. Well, several of them really. First and foremost, investors have been concerned with Chinese stocks as the economy in the region has started to slow. This, in combination with trade war fears, has led to declines in various publicly traded Chinese companies. Unfortunately, to make matters worse, the company’s most recent earnings report was anything but impressive, further adding to the declines.
Nonetheless, in recent sessions, the stock has seen some pretty strong gains as the tides seem to be changing. It all started with the company announced that it had entered into a partnership with Alibaba’s market place known as Taobao. Under the partnership, UXIN would work with the world’s largest eCommerce platform to create an online used car sales store that taylors to both consumers and businesses. This was a game changer for the company as it would greatly expand its audience.
More recently, in fact on Wednesday, the company announced the first bit of results from this partnership. Through the partnership, UXIN facilitated the sale of more than 2,000 cars on the new Uxin Taobao Marketplace during the first 18 hours of the Taobao Double 12 shopping festival, showing that the partnership seems to be paying off.
In a statement, Kun Dai, Founder, Chairman and CEI at UXIN, had the following to offer:
We are very pleased to kick off our collaboration with Taobao with robust sales during the Double 12 Shopping Festival… This is just the first step in our partnership with Taobao. Going forward, we will continue to integrate and optimize our platform to make buying used cars online even more transparent and convenient.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. While news with regard to Uxin wasn’t the best in late November and early December, the tides are changing and news is overwhelmingly positive. So, it’s not surprising to see the reversal. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:58), UXIN is trading at $7.69 per share after a gain of $0.53 per share or 7.40% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch markets team will continue to keep a close eye on UXIN. In particular, we’re interested in following the story surrounding the company’s continued work to expand its audience through the partnership with Taobao. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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