MOGU Inc (NYSE:MOGU) Stock Attempts To Recover: Is it Sustainable?
Over the course of the past month, the Chinese online fashion company MOGU Inc (NYSE:MOGU) has seen its stock perform quite poorly but yesterday it seemed to have made a recovery of sorts. The MOGU stock moved strongly on Tuesday and managed to clock gains of as much as 23%.
However, at the same time, it should be noted that despite the gains the stock is still down by 25% over the past month. The stock rallied yesterday, after it emerged that one of the company’s affiliates, Hangzhou Juangua Network signed agreement for raising its interest and get controlling stake in Hangzhou Ruisha Technology.
As per the terms of the agreements, Hangzhou Juangua is going to pick up a stake in Hangzhou Ruisha Technology from the current shareholders in the latter. After the transaction is completed, MOGU is going to have a 59.62% holding in Hangzhou Ruisha Technology.
The Chairman and Chief Executive Officer of the company, Qi Chen spoke about the development as well. He stated that picking up a stake in Hangzhou Ruisha Technology is a step in the right direction and shows that MOGU is committed to providing outstanding services to its enterprise customers.
Market Reaction:
On Tuesday, MOGU stock surged 23.30% at $1.27 with more than 17.01 million shares, compared to its average volume of 141k shares. The stock has moved within a range of $1.0600 – 1.6650 after opening the trade at $1.12. Over the past 52-week, the stock has been trading within a range of $1.0300 – 4.7200.
