These Shares Caught A Major Bid Following Internal Review Of 'Suspicious Practices'

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, March 6, 2024

It’s not very often that we see a stock jump following an investigation that turned out to be necessary, but that’s exactly what happened after a Chinese company said in a regulatory filing late Tuesday with the US Securities and Exchange Commission that a review of certain “suspicious practices” is now substantially complete.

It turns out that that the company was overstating certain revenue from its online advertising and marketing services in 2023, but the previous president and direction, Jeff Huijian, is stepping down following the independent review. Shares of Dada Nexus Limited (Nasdaq:DADA) were bid up premarket, opening the session at $2.43/share (23.35%) on Wednesday.

Dada Nexus Ltd is a platform of local on-demand retail and delivery in China. It operates JD-Daojia (JDDJ), China's local on-demand retail platform, and Dada Now, a local on-demand delivery platform in China. The company generates revenue from intra-city delivery services to JDDJ retailer customers, commission fees charged to retailers for using the platform, online marketing services, and packaging services.

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