UXIN Stock: What is Uxin?
Uxin Stock: Uxin is an online used car company which is based in China. This company is based in China and in China used cars are new thing for people because people do not prefer to buy used cars there. There is limited access to a wide selection of used cars therefore this is the first problem that Uxin tries to solve. Second problem they try to solve is logistical inconvenience. There is also a lack of transparency and reliability.
They have implemented a massive strategic transformation. They switched their model to inventory owning model which means they own the cars that are on their platform and they are not reliant on third parties. Their shares hit nearly $10 in December 2018. Uxin Company announced that they are going into a strategic partnership with JD to find a self-operated online store on April 22. They will use the JD platform for used car transactions.
Most Investors are looking for the stocks that can gain significant numbers in a short period of time and today Uxin stock is one of them. We are in a stock market where most growth stocks are down. However, Uxin stock is only 30 cents off of its all-time high. Uxin stock is going up these days. It is one of the best and most popular online used car dealers in China.
It is not a company that is listed in America therefore it is not a well-known company and information about this company is limited. You can see it as a hidden gem. The company has already changed their business model and some people expect to reach $32 within a one or two year therefore it can be a great investment for the long term if these expectations happen.
UXIN Stock News
Uxin finally released their end of the year earnings. Three days ago, Uxin stock was trading at $2.95 and today Uxin stock is trading at nearly $3.50. Some investors think that there is a huge opportunity to buy now. Uxin had a stellar earnings report and it showed that the company had reached its inflection point. The sentiment around the company is becoming a lot more positive. The CEO of the company Kundai even said that these changes which they are making today are going to make the company more profitable tomorrow. They still have a long way to go because it is still a risky investment.
Next earnings will very important because it is going to determine if their new business model is actually working. They sold less cars than last year. They sold 2307 cars. You can be curious about why the stock is moving up. Because they made a bunch of huge changes. They got rid of their offline distribution channels and they do not source cars from third parties anymore. As I mentioned they also changed their model to owning an inventory model. Revenue declined 31% year over year however we know that they sold about approximately %90 less cars than last year.
It means the company is getting more profitable and it shows that they are on the right direction. Uxin stock’s gross margin was -22.4% at the last report but it is 2.9% positive today. Uxin stock looks closer to being more profitable than it was a year ago and this explains the rising Uxin stock price. There is a potential for this stock but always do your own research before putting your money into something because stock market is very volatile like cryptocurrency.
This content is not a financial advice. You should do your own research and you are responsible for your own decisions.