Why did Full Truck Alliance (YMM) stock plunge today?

November 26, 2022 02:34 AM AEDT | By Rupam Roy

Why did Full Truck Alliance (YMM) stock plunge today? — Image source: © Rawpixelimages | Megapixl.com

Why is YMM stock declining?

Full Truck Alliance Co. Ltd. is a leading Chinese digital commercial freight platform provider, that offers match-making solutions to shippers and truckers. The online freight and logistics platform firm operates as a software company.

Meanwhile, there is no apparent reason for the recent decline of the logistics firm. However, it has reported its latest quarter earnings results this week, on November 23, at 4 am ET.

Following its earnings release, the YMM stock rallied and added over 14 per cent in the morning trading on Wednesday.

In Q3 FY22, the company noted a growth of 45.7 per cent in its revenue of RMB 1.80 billion or US$ 254.2 million. Full Truck Alliance's net income totaled RMB 395.5 million or US$ 55.6 million, against a loss of RMB 178.3 million in the year-ago period.

The gross transaction value (GTV) of the US$ 7 billion market cap firm reached RMB 69.6 billion or US$ 9.8 billion in Q3 FY22, reflecting an increase of 3.5 per cent YoY.

During its earnings release, the digital freight and logistics firm said that its fulfilled orders reached 33.5 million in Q3 FY22, which was a decline of 5.4 per cent from 35.3 million in Q3 FY21.

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Bottom line:

The trading price of the YMM price was US$ 6.12 at 9:43 am ET on Friday, November 25, down 11.94 per cent, while its trading volume was around 0.97 million. The YMM stock closed at US$ 6.95 on Friday.

With today's losses, the YMM stock noted a decline of over 23 per cent through this year and about 50 per cent YoY. However, in the running month, it managed to add about 34 per cent through Friday, November 25.

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