December has been terrible for the broader market so far. The S&P 500 Index (SPY) has lost about 4.5% while the NASDAQ Composite Index has lost 3.5% month-to-date as of December 11. Concerns about the global economic slowdown and US–China trade tensions have hurt market sentiment (QQQ) this month. In contrast, December is proving to be a great month for some companies—and the largest Chinese used car e-commerce platform, Uxin (UXIN), is certainly one of the top performers. Let’s take a look.
Uxin stock continues to surge
Today at 12:04 PM ET, Uxin stock was trading with a solid 35% daily gain. As of December 11, the stock had already surged 78.7% month-to-date. The deal with Alibaba Group’s (BABA) Taobao that was announced last week boosted investor confidence in Uxin, which seems to have made the stock unstoppable.
On December 6, Uxin announced that that it “entered into a strategic partnership to foster further growth and expand service opportunities for used car e-commerce in China.”
The new partnership should allow Uxin and Taobao to “collaborate in the areas of B2C, and B2B used car transactions, integrated supply chain, and used car loan facilitation.” Both companies plan to “jointly establish an online used car shopping mall on Taobao Marketplace.” Uxin and Taobao expect to “provide a full suite of used car product and service offerings ranging from the intelligent listing, displaying and matching, to one-stop transaction solutions” on through a used-car shopping mall.
Uxin’s deal with Alibaba’s Taobao also attracted many new investors’ attention to the otherwise not widely covered Chinese company. This optimism could keep Uxin stock soring in the coming sessions. It has already violated a key resistance level near $7.20.