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      GSX Techedu Inc. (GSX) Stock Price Dipped An Alarming 62%. Here’s what happened - Stocks Telegraph

      By ST Staff

      Published on

      March 30, 2021

      7:21 AM UTC

      Last Updated on

      August 2, 2021

      5:16 AM UTC

      GSX Techedu Inc. (GSX) Stock Price Dipped An Alarming 62%. Here’s what happened - Stocks Telegraph

      GSX Techedu Inc. (GSX) stock price plunged approximately 19% on Monday. It had dropped 42% to close Friday’s market session, at $39.01, a price which lowered immensely in comparison with the previous days closing price. The stock price had significant fluctuation with the firm’s stock price losing62% within the last 5 trades.

      CEO of GSX Chen, lost an estimated $4.2B from his net worth dropping him from the Bloomberg Billionaire index of the richest 500 people on an international scale. The sales stimulated price variations for every stock encountering high-volume transactions and investors are also speculating force selling of stocks by a fund being liquidated. GSX, had block trading of 12.8 million shares offered at a discount to a price of $49.50, which was later closed at a ballpark figure of $39.

      Should You Keep An Eye Out For GSX

      GSX is selling 78% lower than its 52-week high, with the company reporting a gross margin of 75%. However short sellers slammed the company, implying that a large proportion of the users of the company are bots and software bugs. GSX financially recovered from this however, the company was degraded several times due to increased competition.

      Furthermore,a rumor that GSX corporate management is going to essentially diminish guidance for upcoming third-quarter earnings; and a loss of $135M is expected in their 3rd financial quarter has proven to be a huge downside for the company and has induced uncertainty in investor mindset.


      GSX is a Chinese education technology company providing online tutoring services with a market capitalization of $9.54B. However, several rumors including an inflated balance sheet and the user of the websites being stated as ‘robots’ have made the company stock extremely volatile with the company plummeting immensely the last 5 trading sessions.

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