How it makes any sense?? They had the best earnings and forecast. Ecomm in China is booming and DANG is in good position to capitalize on it's past investments in technology, infrastructure and partnerships. Even if they capture 5% of the Chinese ecomm market, market share should be around $2Billion with stock price around $18. Am I missing something here?
I agree it is strange that they cut their rating after the earnings beat. And what also is strange is that the stock went up after they cut their ratings - this is not normal. Long ago I gave up trying to understand why this stock goes up or down and why so many analysts hate it. I'm just buying all I can and holding for the long term. When margins improve for a few quarters in a row and show a clear path to profitablility, this thing will get to $20+ fast. Just keep buying and turn the low price into a positive for yourself and your family.
Yes - you are not trigger happy. Wait for 2 to 3 quarters - if - Dang shows that it could grow at 50% clip each quarter, you have a 10 bagger at hand. Looking at their investment in the Warehouse and the business model of reporting, I am comfortable and confident.
100% agree with you. DANG has to show consistent growth for few quarters before it materialize for LONGs. However, knowing all the potential how a firm like Barclay could cut the target down by 25%. Perhaps their pre-earnings analysis, stuck in outbox and just found a way out ;)