Dada Nexus shares are trading lower after the company announced that it discovered suspicious practices in an internal audit. Also, the company said it estimates revenues may have been overstated and that Q4 and 2023 guidance should no longer be relied upon.
Portfolio Pulse from Benzinga Newsdesk
Dada Nexus shares dropped following an internal audit revealing suspicious practices and potential revenue overstatement. The company advised that its Q4 and 2023 guidance are no longer reliable.
January 08, 2024 | 4:52 pm
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NEGATIVE IMPACT
Dada Nexus shares are expected to face negative pressure in the short term due to the internal audit revealing suspicious practices and potential overstatement of revenues.
The revelation of suspicious practices and potential overstatement of revenues is a significant negative development for Dada Nexus. It undermines investor confidence and trust in the company's financial reporting, which can lead to a sell-off in the short term. The fact that the company has explicitly stated that its previous guidance should not be relied upon further exacerbates the uncertainty and potential impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100