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Tag: VIPS STOCK PRICE

  • Vipshop Holdings Limited (VIPS) stock is down in the Pre-market; here is why?

    Vipshop Holdings Limited (VIPS) declined in the pre-market after announcing its unaudited fourth quarter and fiscal 2021 results. VIPS values at $8.97, losing more than 9% compared to yesterday’s closing price. The stock closed at $9.84 at the end of the last trading session. The stock volume traded in the last trading session was around 6.63 million shares. The current market cap of the company is around $6.66 billion.

    VIPS: Q4 and Fiscal 2021 Key Financials

    • Vipshop Holdings Limited’s revenue in Q4 2021 was RMB34.1 billion, slightly lower than compared to the revenue of RMB35.8 Q4 in 2020.
    • Fiscal year revenue was RMB117.1 billion, and it is an increase of more than 14.9% compared to the revenue of RMB101.9 billion in fiscal 2020.
    • Q4 2021 GMV was around RMB57 billion. GMV for fiscal 2021 was approximately RMB191.5 billion gaining more than 16% YoY.
    • The company’s net income in Q4 2021 was around RMB1.4 billion. The net income in Q4 2020 was RMB2.4 billion.
    • VIPS net income in fiscal 2021 was around RMB4.7 billion, less than compared to the net income of RMB5.9 billion in fiscal 2020.
    • The Q4 2021 diluted earnings per share were RMB2.07.
    • For fiscal 2021, diluted earnings per share were RMB6.75.

    VIPS CEO’s Remarks

    Despite a slow fourth quarter under harsh conditions, VIPS CEO Eric Shen is pleased with the overall performance in 2021. Active customers increased 13% to 93.9 million. To achieve quality and long-term growth, they will build brand partnerships, improve customer acquisition efficiency, and increase consumer loyalty.

    VIPS 2022 Outlook

    Total net revenue is expected to be between RMB27.0 billion and RMB28.0 billion in the first quarter of 2022. It’s a year-over-year drop rate ranging from 5% to 0%.

    Conclusion

    The stock of the company is down despite the solid financial statement. Pre-market is a volatile trading session as most traders prefer to trade in the regular trading session. The stock might gain value as the new trading session starts today.

  • Vipshop Holdings Limited (VIPS) stock plunged in the current market trading session: here’s why

    Vipshop Holdings Limited (VIPS) stock plunged in the current market trading session: here’s why

    VIPS stock is currently being traded at $29.82 which is a 4.33% downward movement. The stock previously closed at $31.19.

    What is behind the block trade?

    The recent negative pattern of the stock-movement is due to the sell-off behavior of US-listed shareholding in Chinese technology companies. Traders have braced themselves for volatility in the US-equities market following the $20 billion worth of trades blocked on Friday. This has really shaken investor’s comfort in investing in the Chinese tech stock as SEC has threatened the delisting of such firms from American exchanges.

    The fear and speculation for de-listing of companies started stirring around 24th March after US Securities and Exchange Commission adopted a law that was passed by former President Trump called the Holding Foreign Companies Accountable Act. The law also requires the Chinese companies to present the names of each Board member who is a member of the Chinese Communist Party.

    Stock dump and initial block trade

    The stock dump has come from Archegos Capital Management LLC which consists of the family office of Bill Hwang. They dumped shares of not only Chinese tech firms but also US media conglomerates. It has been reported that the initial block trades have come from Goldman Sachs as well as Morgan Stanley. However, majority of those block trades have been rebounded apart from ViacomCBSinc and Discovery Inc.

    Stanley sold a large block of 45 million shares of ViacomCBS on Sunday. Similarly, Goldman Sachs sold the shares of Vipshop Holdings Ltd, ViacomCBSInc, IQiyiinc, Baidu, and Tencent Music Entertainment Group for a total worth of $10.5 billion.

    Significant observation and investment behavior adopted now by investors

    One main observation is being made around by analysts and portfolio fund managers that they are not sure if additional block trades will take place but the fear still looms over the market over its speculation. However, they are assuring readers and investors that none of the sell-downs are related to the fundamentals, performance, and outlook of the Chinese tech companies.

    The fear and speculation of a block trade is stacking up with the traditional end-of-quarter volatility that causes sharp swings on stocks while triggering selling sentiment from other funds. However, a strategy is being implied by investors where they realize that the fundamentals of these companies are essentially the same, while this de-listing is an exaggeration that will dim down in the future. Meanwhile, that happens these Tech stocks are undervalued as their stock price keeps dropping which makes them a buying option for some long-term investors.