Vip.Com'S Stock Price Has Fallen 35%, And Its Market Value Has Evaporated Over 2 Billion 500 Million US Dollars.

Vip.com's US stock market fell nearly 30% before its closing price of $18.62 to $13.25 a day ago.

Vip.com's explanation is that the company's third quarter revenue is lower than expected, mainly because China's temperature after autumn is higher than the company's expectations.

The third quarter earnings report was released in November 18th, with a revenue of 1 billion 363 million US dollars, an increase of 54% over the same period last year, continuing the downward trend of the previous quarter's year-on-year growth.

More importantly, vip.com's first round of performance decline has broken the record of its 14 quarter revenue growth.

In contrast, vip.com's share price suffered a cliff breaking crash.

In the first 5 days, vip.com's stock price fell 35% and its market value evaporated more than 2 billion 500 million dollars.

After buying a piece of cake from the market by flash shopping, vip.com tried to duplicate more success.

In addition to continuing to expand in the category, vip.com continues to try group buying, open platform, overseas shopping and so on.

These are essentially different from flash buying and gradually drag vip.com into the mire.

Share price plummet

Overnight, vip.com investors felt the merciless and pressure of the capital market.

In the evening of November 13th, vip.com issued an early warning: in the third quarter of 2015, the revenue in the 8 billion 600 million quarter was 8 billion 600 million yuan to 8 billion 700 million yuan, with an annual growth rate of 61% to 63%.

Vip.com's share price immediately dropped.

Vip.com's US stock market fell nearly 30% before its closing price of $18.62 to $13.25 a day ago.

At the US stock forum, vip.com investors began to shout abuse: "this is a conspiracy of big institutional investors, those hateful Zhuang Tuo, the time to crash......"

Vip.com's explanation is that the company's third quarter revenue is lower than expected, mainly because China's temperature after autumn is higher than the company's expectations, which also allows consumers to postpone the purchase of relatively high prices.

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The capital market is not buying.

Vip.com's share price continues to fall like a kite with a broken line.

On the evening of November 16th, Jingdong listed in the US released its third quarter earnings and its share price rose.

Jingdong mall CEO Shen Haoyu also played vip.com's "face" at the next analyst meeting, saying that sales of clothing category were not affected by the weather.

In November 18th,

Finally unveiled the true colors of Mount Lu.

Data show that revenue of 1 billion 363 million dollars, an increase of 54% over the same period, a decrease of 6%.

Vip.com's growth rate dropped again after the growth rate dropped to 75% last quarter.

It is worth noting that in the media reported vip.com's Chinese earnings report, the year-on-year growth rate was 63%, that is, in the third quarter of 2014, the revenue was $835 million 700 thousand.

In the 6-K file submitted by vip.com to SEC, the Q3 revenue in 2014 was $882 million 600 thousand, consistent with the same period last year.

Accounting for the quarter, the year-on-year growth rate was only 54%.

Coincidentally, the United States is short of institutional MithraForensicResearch. JCapitalResearch, a market research firm, issued several queries on vip.com several times this year. One of them is that the financial documents submitted by vip.com in China are not the same as those submitted to the sec.

What is even more interesting is that before vip.com announced its earnings, Tencent's strategic investment in vip.com was widely spread.

Even so, vip.com's stock price remained unchanged yesterday.

On the contrary, share prices went up and down, closing down to 12.53 dollars.

Blocked growth

The setback in share prices is just a sign of weak growth.

In the second quarter of this year, vip.com's earnings report has shown signs of weakness.

After 10 consecutive quarters of 3 digit growth rate, revenue for the first time ushered in year-on-year growth of 75%.

Among them, "vip.com growth has inflection point, I hope Chen Yizhou and Xu Xindou have successfully unlocked" in a paper, elaborated on vip.com's performance growth suffered inflection point reasons.

After the inflection point, vip.com's performance began to slide.

Vip.com's third quarter earnings report showed a $1 billion 363 million revenue and net profit of about $50 million.

Vip.com's revenue in the second quarter was $1 billion 454 million and net profit was $64 million 400 thousand. In the past quarter, there was no way to solve the problem of hindered growth.

Another group of core operational data shows that vip.com's active users and orders have also experienced growth bottlenecks.

In the third quarter, vip.com's active customers grew by only 400 thousand, while orders fell from 44 million 900 thousand in the previous quarter to 44 million 800 thousand.

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The cost and cost of vip.com has not been substantially reduced.

According to the earnings data, the cost of the product is only $1 billion 25 million, a decrease of 6% compared to the same period, an increase of 55% over the same period.

Vip.com's total operating cost in the third quarter was 1 billion 800 million yuan ($283 million), an increase of 45% over the same period last year.

This fully shows that vip.com's operational efficiency has problems, especially for new users, as well as the conversion of order pactions, ROI has not reached the standard.

Vip.com CFO Yang Donghao admitted in the earnings report, "unfortunately, the growth of our new users is worse than expected."

In addition, in order to pursue the growth of trading scale, vip.com began to imitate Jingdong and open up its platform.

In horizontal development, vip.com coexists with flash buying, group buying and open and flat mode. In the depth of category, vip.com continuously strengthens the category of female users' attention and increases the ability of male users to absorb.

Vip.com is getting heavier and heavier, and its location is becoming more and more blurred.

Competitors believe that vip.com will go through such a stage, and when it grows to a certain scale, the current business mode can not bring higher growth, it will try a new path.

Once this balance is not well grasped, not only will it bring no increment, it will also hurt the root.

Vip.com has adjusted this and began to shrink the low profit group buying business in the third quarter.

There is no doubt that group buying not only has an impact on profit margins, but also affects user experience on the same platform.

As a result, vip.com's move is very small.

The chairman of the vip.com board and CEO Shenya used "disappointment" to express the quarterly earnings.

Space is compressed

When the stock price is underestimated by the market, the stock companies will always use the buy back stock to enhance the confidence of the capital market.

Vip.com is no exception.

Vip.com's Board approved a share repurchase program that allows companies to repurchase American depository receipts with a total value of up to $300 million in the next 24 months as of November 16, 2017.

Up to now, vip.com has 558 million dollars in cash and equivalents.

However, in the performance outlook, vip.com expects net revenue in the fourth quarter to be RMB 12 billion yuan to RMB 12 billion 500 million yuan, an increase of 43% to 49% over the same period last year.

If the data match, vip.com will continue to decline in the first two quarters.

Before vip.com took effective action to help him turn the tide, his colleagues did not stop rolling it and snatch more market cakes.

The ups and downs of business and the twists and turns are always exciting for good people.

After vip.com's high-speed growth this year, Tmall and Jingdong have stepped up their "prevention" and "attack" against vip.com.

As a high-frequency consumer clothing, the company is regarded as the lifeblood and the new world respectively.

Double 11 data show that Tmall has gained a lot of clothing: UNIQLO sold the first billion yuan in sales that day, and then over 100 million businesses were over 20.

Clothing is the mainstay of the 11 day trading volume of 91 billion 200 million yuan.

This is why Tmall started this year to strengthen its strategic partnership with merchants. There is a demand for merchants' resources, and Tmall has put pressure on Jingdong and vip.com to erode the clothing market.

The performance of Jingdong is more obvious.

In addition to teasing vip.com's "climate theory" at the earnings analysts' conference, it also bluntly stated that double 11 clothing category pactions grew healthier.

Jingdong's third quarter earnings report provides evidence that the 3C digital and home appliances trading volume has slipped for the first time, while clothing and department stores have increased accordingly.

Jingdong seems to be not satisfied with this. In the voice of PR, it also highlighted the third quarter flash buying GMV accounted for more than 1%, an increase of 300% over the same period last year.

The media interpreted the trend as "it can be predicted that Jingdong's high growth flash buying business will erode vip.com's market share."

It can not be overlooked that double 11 is bound to have an unprecedented impact on vip.com.

Clothing business will not pass the golden period of shipment, in addition to the new winter, the backlog of inventory can also be cleaned by double 11.

In this year's double 11, Tmall, Jingdong, Suning three "torn noise" from the beginning, vip.com in a corner of the cold shoulder.

After the 11 double ended, Ali launched the "double 12".

Tmall also mobilized resources to help businesses in the early stages of a large number of goods to deal with goods that were not disposed of 11.

This also indirectly proves that this year's double 11, Tmall is very "strategic" and "very independent".

Sutter said that others are hell.

While solving its own problems, vip.com really needs to break the ceiling of competitors.