What happened
Chinese e-commerce retailer Vipshop Holdings (NYSE: VIPS) outpaced the market by a wide margin last month as the stock gained 41%, versus an 8% spike in the S&P 500 , according to data provided by S&P Global Market Intelligence .
The move didn't put long-term shareholders much closer to positive territory, though, as shares remain lower by more than 50% in the past year.
So what
Like many stocks, particularly those attached to the slowing Chinese tech market, Vipshop shares have been under intense pressure in recent months. The stock set multiyear lows in late 2018, in fact. But sentiment for the broader market shot dramatically higher in January, which created favorable conditions for shares to rebound. That boost was further fed by a head-turning analyst upgrade that predicted Vipshop could reach as high as $10 per share in the coming months.
Now what
Vipshop edged past expectations on both the top and bottom lines in its last quarterly outing. But key growth metrics -- like its pool of active customers and average order value -- are slowing . For last month's rally to lift shares anywhere close to recent highs above $10 or $15 per share, those metrics will have to start marching higher again. Investors will learn whether that was the case recently when the company reports fourth-quarter results in late February.
10 stocks we like better than Vipshop Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Vipshop Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 31, 2019
Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
