NQ Sinks on Audit: Tech Winners and Losers
NEW YORK ( TheStreet) Shares of LightInTheBox Holding
The international online retailer announced Friday that they were raising their Q2 guidance from $84-86 million to $86-88 million. This update raises the year-over-year increase in guidance from 19% to 22%. That day, LightInTheBox shares surged more than 25%.
"We are encouraged by the better-than-expected results for the second quarter," Alan Guo, the CEO of the Beijing-based company, said in a statement. "We look forward to providing investors with more details about our performance on our second quarter earnings conference call."
Chinese e-commerce companies have performed particularly well this week. 58.com
A company press release stated that auditors PricewaterhouseCoopers "would need to perform additional procedures and expand the scope of its 2013 audit work." The press release stated that the company "was considering PwC's request." In addition, the same press released announced that the company was replacing the chair of its audit committee, a highly unusual step in the middle of such an audit.
NQ has been plagued by accusations of fraud. For example, Muddy Waters Research , a firm run by short-seller Carson Block, called the company a "massive fraud," citing, among other things, cash balances are "highly likely to not be real." By 11:40 am yesterday, the volume of trades was almost double the company's daily average.
Following this week's historic rise, shares of Netflix
Netflix hit an 52-week high on July 1, jumping 7.38% to $473.10 after Goldman Sachs
The stock fell to $466.74 on Wednesday but is today approaching Tuesday's levels.
The ratings agency maintained Best Buy's Baa2 rating but upgraded its outlok from negative to stable. Moody's vice president Charlie O'Shea wrote that the rationale behind the upgrade was "the progress Best Buy is making as it transitions to a true multi-channel retailer." The company has built vendor relationships with Microsoft, Samsung, and Sony. That and its "excellent liquidity provides it with the ability to further invest in price on a tactical basis to defend market share against lower-margin competitors such as Walmart, Target, and Amazon."
Best Buy is the largest dedicated consumer electronics retailer. In the first quarter of fiscal year 2015, which ended in May 2014, the company beat expectations by raising its EPS from $0.32 to $0.33.