Boqii Holding Limited (NYSE:BQ) Stock Pulls Back Sharply After The Recent Gain

While many stocks recorded gains on Wednesday, there were many others which recorded losses and Boqii Holding Limited (NYSE:BQ) was in the latter group. Yesterday, the Boqii stock suffered from a selloff and went down by as much as 10%.

Market Stats

On Wednesday, BQ stock moved down 10% at $2.01 with more than 749k shares, compared to its average volume of 221k shares. The stock has moved within a range of $1.9750 – 2.3380 after opening the trade at $2.31.

Latest News

While the losses recorded by the stock may have been considerable, it is also necessary to note that there was no news in relation to the company that might have led to such a decline. As a matter of fact, it has been many weeks since any news emerged about the company and it could be a good move to take a look at that news.

Back on October 20, the Chinese pet focussed platform operator announced that it entered into a strategic partnership with the company Yongle Huazhu. Yongle Huazhu is a joint venture that is headed by Huazhu Group Limited, one of the world’s leading hotel operating groups and Sunac Cultural Tourism.

By way of this partnership, Boqii is going to help the Blossom Hotels run by Yongle Huazhu in providing a pet friendly environment to its guests. While it is true that it was a significant development, the latest decline in the stock is something that investors ought to keep in mind before making a move on the Boqii stock.

Key Quote

“The partnership with Yongle Huazhu marks another milestone in our offline strategy execution,” said Mr. Hao Liang, Chairman and CEO of Boqii, “Huazhu Group is a world-leading hotel group operating several thousand hotels in many countries around the world. With Huazhu’s track record of success in hotel management and our extensive knowledge of pet parents and pets, we will co-develop pet-friendly hotel solutions that will be seamlessly integrated into our membership program to provide pet parents with hassle-free holiday experiences which are equally enjoyable stays for pets. We look forward to working with Yongle Huazhu in enhancing our service portfolio for pet parents and addressing the growing needs in our pet communities to lead accelerated growth for both companies.”

Traders Corner

BQ stock is trading below the 20-Day and 50-Day Moving averages of $2.09 and $2.30  respectively. Moreover, the stock is trading below the 200-Day moving average of $4.40. The stock is up 21% in the past month.