Dangdang Share Price Fell Six Days, 30%&Nbsp; &Nbsp; Price War Or The Main Reason.

Yesterday, Dangdang (DANG.NYSE) share price finally Rebound It rose by 3.45% to 23.71 dollars. Dangdang's share price has dropped six days, and its overall decline has exceeded 30%, from 32.79 U.S. dollars in December 10th to 22.92 dollars in December 20th.

Why did Dangdang share prices go up and down after the listing? What's the problem?

The story starts from the December 8th listing of Dangdang in the New York Stock Exchange.

After listing, Li Guoqing, a Chinese graduate of Beijing University and a joint venture with Dangdang and Dangdang, did two things. One thing is to tell her love story on Sina micro-blog. One thing is to fight price war and war with Jingdong mall and Amazon.

When Li Guoqing began to recollect the love story, his prospectus also disclosed that fundraising would be used for the development of electronic commerce in department stores, which directly moved the cheese of China's first B2C e-commerce website Jingdong mall.

Liu Qiangdong, chairman and CEO of Jingdong mall board, announced that the book price will be cut by 20% and the price war will be launched against Dangdang. At this time, Li Guoqing was still on micro-blog, describing himself to invite his first girlfriend to New York to observe the listing ceremony.

On micro-blog, Li Guoqing's description of his label is: "my mouth is open, and I have many offense. Please forgive me."

After listing, Li Guoqing published several times in the world of micro-blog, and recalled the history of love in the past. At the same time, he complained to a female netizen in the same way. He also expressed his dissatisfaction with the behavior of public relations companies hired by Dangdang. He also complained about the investment behavior of PE and the hedge behavior of his competitors. He described himself as a "successful person" on the streets of New York.

Former Sina CEO Wang Zhidong forwarded a micro-blog joke to Li Guoqing: "I have a dream..." When my company is listed in the United States, I must open a big Party in New York, and invite my female primary school students, middle school girls and university girls to come over and say loudly, "who told you not to talk to me, hum?"

Li Guoqing responded by saying, "ha ha, you are squeezing me. Do you believe that as a "successful person", I want to express the delay in compensation for lovelorn? I really want to say: a generation of Chinese can also have today! It is equal to the American bigwigs! I think of Latin American writer Borges: "people and people are essentially unable to communicate."

For Li Guoqing's slightly excited words and deeds after the launch of the listing, Internet commentator Hong Bo (micro-blog) said that there might be some changes in Li Guoqing's mentality after the possibility of listing. Li Guoqing himself is not a particularly low-key person, but he is still conservative in his work. If he wants to grow rapidly, he needs to take a bold try.

The professional financial website I, founder of the US stock market, micro-blog (micro-blog), did not comment on Dangdang and Li Guoqing's behavior, but forwarded a micro-blog to the editor of the former entrepreneur magazine. However, Fang San Wen believes that when Dangdang was listed in the United States as China's Amazon, there is still a gap from the fact.

Because of the aggressive attack of Jingdong mall, Li Guoqing stopped talking about "love" on micro-blog, and began to announce Dangdang book price reduction to deal with the book promotion of Amazon and Jingdong mall.

"Dangdang share price decline and Li Guoqing talk about their first love should not have much to do, investors will not be too concerned about his personal feelings." Internet analysts just told reporters.

However, Xu believes that the main reason for Dangdang's decline is that the book business, which occupies 85% of Dangdang's sales, has been influenced by the Jingdong mall and Amazon's price war. "Dangdang's net profit is only 1%, and net profit also comes from interest income and other factors. Therefore, encountering price wars will make investors worry about Dangdang's low profit margins further reducing."

Hong Bo believes that Dangdang is not an overpackaged company, but an early overvalued company. As a ten year old company, its business model has not changed very much. Its stock price drop is mainly due to the high expectations of investors. Investors will see the impact of price war and their relatively robust growth, which will definitely reduce the pre period of Dangdang.

But Li Guoqing is not easy to follow.

For the first time price war Soon after the war, Dangdang took the initiative to launch a price war against Jingdong mall, and announced that it would spend 40 million yuan on electronic products and department stores. After that, Jingdong mall announced 80 million yuan to follow up the price reduction. Amazon announced that it would follow up the department store's price by 100 million yuan, and Taobao mall also launched a year-end promotion. As for Dangdang's future department store business, Xu believes that although the proportion of Dangdang department stores has been rising, it is estimated that investors will be worried because of the competition between the stronger Jingdong mall and Taobao mall.