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Why GSX Techedu Stock Crashed Today

TheMotleyFool

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Shares of Chinese online after-school tutoring stock Gaotu Techedu (NYSE: GOTU), which changed its name from "GSX Techedu" last week, closed down 9% on Friday after investment bank Citigroup downgraded the stock all the way from buy to sell.

According to Citi, Chinese news site Xinhua Net quoted Chinese President Xi Jinping commenting that "students should not rely for their studies on after-school tutoring."

And given that after-school tutoring is basically Gaotu Techedu's entire business model, you can understand why that comment kind of cut the stock to the quick.

Source Fool.com

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