The Revelations:
Dada Nexus Limited DADA shocked investors when it disclosed suspicious practices that led to potential revenue overstatement in its online advertising and marketing services in 2023 during a routine internal audit. The company further added that such overstatement had taken a toll on the credibility of its fourth-quarter and 2023 guidance, leaving stakeholders in a state of uncertainty.
The announcement reverberated in the market, causing Dada Nexus shares to plummet amidst heavy trading volume. Trading data from Benzinga Pro indicates that over 11.7 million shares exchanged hands during the session, a stark contrast to the stock’s 100-day average of 1.225 million shares.
Strikingly, Dada hit a new 52-week intraday low of $1.89 on Monday, reflecting the severity of the impact of the company’s revelation on its market position.
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Stock Reaction: Dada Nexus shares are down a harrowing 36.5%, currently priced at $2.00, according to Benzinga Pro.
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