Why Nio Stock Erased Early Gains Today
Nio (NYSE: NIO) stock has been turbulent recently, and for good reason. After a big dip yesterday on mounting fears of how the spread of COVID-19 will hurt Chinese consumers and the economy, Nio staged a comeback Tuesday morning.
The shares rose as much as nearly 5% in early trading but couldn't hold those gains. That was because of news of a data breach from the company. After losing that early jump, Nio's American depositary shares were holding on to a gain of 0.7% as of 12:50 p.m. ET.
There wasn't any breaking news today related to how the COVID-19 virus spread is affecting the citizens and economy of China. That situation will continue to play out, and that might continue to make stocks of U.S.-traded Chinese companies volatile. However, more company-specific news has impacted Nio today. The company announced a data breach that could hit not only its reputation, but also its finances.
Source Fool.com
