58.com Inc (WUBA) Shares Tumble Then Bounce Back Following Negative Internal Email

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While Chinese stocks can oftentimes be volatile with information lacking when compared to the US market, they are oftentimes also undervalued. Today one such stock saw quite a bit of volatility after an internal email from within the company leaked, showing that the company may have overstated their revenue and earnings.

As the email made it’s way around several news outlets and on social media, the stock briefly plunged as low as $51.39. From their the stock bounced back quickly to the $54.50 level and has seemingly leveled off for now. The email, which is written in Chinese, is not exactly easy to translate, but it seems to have been enough to spook the market, albeit only temporarily. It will be interesting to see how shares of 58.com Inc (ADR) (NYSE:WUBA) react over the remainder of the trading day.

The stock is down 2.67% or $1.5 following the news, hitting $54.6 per share. About 941,228 shares traded hands or 21.97% up from the average. WUBA has declined 15.58% since June 25, 2015 and is downtrending. It has underperformed the S&P500 by 6.71%.

From a total of 7 analysts covering 58.com (NYSE:WUBA) stock, 4 rate it a “Buy”, 2 a “Sell”, and 1 a “Hold”. This means that 57% of the ratings are positive. The highest target price is $65 while the lowest target price is $48. The mean of all analyst targets is $58.17 which is 6.54% above today’s ($54.6) stock price. 58.com was the topic of 7 analyst reports since August 21, 2015 according to the firm StockzIntelligence Inc. HSBC initiated shares on December 15 with a “Buy” rating. Credit Agricole initiated WUBA stock in a recent report from October 15 with a “Sell” rating.

58.com Inc. is a holding company. The company has a market cap of $7.60 billion. The Firm operates an online marketplace serving local merchants and clients in China. It currently has negative earnings. The Company’s online marketplace enables local merchants and clients to connect, share information and conduct business.

#focuskw=’58.com Inc (ADR) (NYSE:WUBA)’##metadesc=’While Chinese stocks can oftentimes be volatile with information lacking when compared to the US market, they are oftentimes also undervalued. Today one such stock saw quite a bit of volatility after an internal email from within the company leaked, showing that the company may have overstated their revenue and earnings. As the email made it’s way around several news outlets and on social media, the stock briefly plunged as low as $51.39. From their the stock bounced back quickly to the $54.50 level and has seemingly leveled off for now. The email, which is written in Chinese, is not exactly easy to translate, but it seems to have been enough to spook the market, albeit only temporarily. It will be interesting to see how shares of 58.com Inc (ADR) (NYSE:WUBA) react over the remainder of the trading day. ‘##metarobot=’index’##newskw=’Zafgen Inc positive news,Zafgen Inc – (NASDAQ:ZFGN),NASDAQ:ZFGN Analyst rating analysis,Stock Analysis,Outlook and potential,ZFGN Price change and trend,ZFGN stock update’##sitemap=’include’##skipsocial##stockticker=’NYSE:WUBA’#