Why Vipshop Holdings Shares Skyrocketed Today
Shares of Vipshop Holdings (NYSE: VIPS) have skyrocketed today, up by 42% as of 12 p.m. EST, after scoring a huge vote of confidence from Chinese tech giants Tencent (NASDAQOTH: TCEHY) and JD.com (NASDAQ: JD). The two companies announced they will invest $863 million combined in the online discount retailer.
Both larger companies will be purchasing Class A ordinary shares at a price of $65.40 per share, which translates into $13.08 per American depositary share of Vipshop. Five American depositary shares, which are what trade in the U.S., represent one Class A ordinary share. That purchase price represents a 55% premium over Friday's close.
Image source: Getty Images.
Source: Fool.com
Vipshop Holdings Ltd. ADR Stock
€14.70
-0.680%
With 7 Buy predictions and not the single Sell prediction the community is currently very high on Vipshop Holdings Ltd. ADR.
As a result the target price of 18 € shows a positive potential of 22.45% compared to the current price of 14.7 € for Vipshop Holdings Ltd. ADR.
