Why the Yatsen stock has skyrocketed today
What happened
Actions of Yatsen Holding (NYSE: YSG), a direct-to-consumer (DTC) cosmetics company in China, was skyrocketing on Friday, perhaps because it is starting to gain positive attention after initially going under the radar. As of 11 a.m. EST today, the stock was up 16%.
So what
Yatsen went public in November. Despite his successful IPO, this company just does not have the notoriety in the United States that many other high-profile IPOs have. Therefore, many people do not know it. But that could change. Yesterday, for the second time in three weeks, Daily Investor Affairs highlighted the title after the market closed.
Image source: Getty Images.
With no further news, it looks like that cry was enough to drive Yatsen’s stock up today. This would not be enough for most stocks, but for a low trading volume stock like Yatsen, it is sufficient to send higher stocks in the short term.
Now what
In the long run, it’s always the business results that count, Yatsen included. And as far as his activity goes, it could be a international actions worth knowing. The company was founded in 2016 and already owns one of the most popular cosmetic brands in China: Perfect Diary. And thanks to that popularity, the company has already generated $ 482 million in revenue in the first three quarters of 2020, when it is only five years old.
Yatsen’s growth is impressive, but it could slow down. The company had 23.4 million DTC customers at the end of 2019, but only added around 100,000 in 2020. This growth in user numbers is something to watch when it releases its results soon.
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