VIPS Stock: Why It Fell Today

By Amit Chowdhry ● Sep 23, 2021
  • The stock price of Vipshop Holdings Ltd (NYSE: VIPS) fell over 5% today. This is why it happened.

The stock price of Vipshop Holdings Ltd (NYSE: VIPS) fell over 5% today. Investors are responding negatively to a bearish research report.

JPMorgan analyst Andre Chang downgraded Vipshop from “Overweight” to “Neutral.” And Chang assigned the company an $11 price target — which is down from a previous price target of $22.

Chang noted that while the share price corrected by over 50% year-to-date, the stock is not expected to outperform over the next 6 months. Going forward, Chang is now projecting Vipshop’s second half of 2021 revenue to grow at 5% year-over-year with the margins set to drop further. 

The macro-environment cool-down had also turned out to be worse than expected, thus hitting discretionary items that Vipshop relies upon more than its peers. And the company’s sales and marketing expenses have not been scaled back much, which leads to concerns about short-term margins and the sustainability of user engagement.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.