- Pop Culture Group (NASDAQ:CPOP) tumbled more than 15% Monday, falling sharply for a sixth straight session as the Chinese hip-hop company continued to reverse a 1,200% rally that the firm’s U.S. shares saw in their first two post-IPO sessions.
- CPOP dropped as much as 21.7% to a $14.11 intraday low before partly recovering to end Monday’s session at $15.24. That’s the stock’s lowest close since going public on the Nasdaq at $6 a share on June 30.
- Pop Culture Group’s shares shot up to as high as $78 on their second trading day following the initial public offering, but have been giving back those huge gains ever since. CPOP is now down 80.5% from its intraday peak, although shares are still up 154% from their IPO price.
- The company stages hip-hop events in China and consults with firms that want to use hip hop to appeal to the Asian nation’s young consumers.
- However, its shares have followed the same pattern that other Chinese firms’ U.S. IPOs have in recent days – soaring in their first one or two trading days, then sinking.
- DIDI Global (NYSE:DIDI), Full Truck Alliance (NYSE:YMM) and Kanzhun Ltd. (NASDAQ:BZ) have recorded similar gains and losses following Beijing's crackdown against Chinese tech companies' U.S. IPOs. However, even they didn't experience the same dramatic percentage swings that CPOP has seen in the past few days.
Seeking Alpha contributor Bamboo Works recently wrote that the Beijing government’s crackdown on the Chinese tech firms could impact Pop Culture Group as well.
Bamboo Works wrote that while an entertainment company like CPOP “may not carry the same risk level as companies that operate in high-tech realms, it still includes some uncertainties due to China’s ever-changing regulatory climate.”
Pop Culture Group's stock sinks for sixth session following 1,200% post-IPO rally
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Symbol | Last Price | % Chg |
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CPOP | - | - |
Pop Culture Group Co., Ltd |