Is Luckin Stock Finally a Buy?

When it comes to
Luckin Coffee
(OTCMKTS:
LKNCY
), it’s not all about pointing fingers, bad actors, or failed price charts and the like. Luckin stock is an important wake-up call. In a market made up of stocks, it’s always smart to hedge those sure things or the next, next big thing, to avoid the possibility of an ever-present painful burn. Let me explain.
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For more than a few growth stock investors, Luckin Coffee was supposed to be the next
Starbucks
(NASDAQ:
SBUX
). Shares of the China-based upstart certainly looked ready to make good on that promise for a short while.
Luckin had massive growth. The company smartly utilized today’s mobile technology and brick-and-mortar locations to their benefit to win customers. The icing on the cake? Shares were relatively new to the market. Luckin only went public in 2019. And often, most growth stories of Luckin’s caliber see their largest stock gains during those first few years.
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So, what could possibly go wrong for investors looking to get in near the ground floor of LKNCY and cash in? It turned out, a whole lot.
Lessons Learned
Not exactly a secret, accounting shenanigans concocted by Luckin’s top brass and uncovered during the height of the coronavirus dosed Luckin’s well-brewed narrative. Shares rightfully plummeted. It’s not even