Gaotu Techedu Inc. (GOTU) saw its stock plummet by 5.26% in pre-market trading on Tuesday, as Chinese ADRs (American Depositary Receipts) faced a broad sell-off amid profit-taking and a cooling tech rally. The education technology company's decline aligns with a larger trend affecting numerous Chinese stocks listed in the U.S.
The sell-off in Chinese ADRs comes despite strong gains on Wall Street overnight, suggesting a disconnect between U.S. and Chinese market sentiments. Investors appear to be reassessing their positions in Chinese tech stocks as the initial excitement surrounding DeepSeek's AI model wanes. Market participants are now demanding more concrete evidence of real-life applications before further bidding up share prices.
Adding to the pressure on Chinese stocks is the potential for new tariffs on automobile imports announced by former President Donald Trump. While the direct impact on Gaotu Techedu may be limited, the overall uncertainty surrounding U.S.-China trade relations could be contributing to the negative sentiment. As investors recalibrate their expectations, the sustained sell-off in Chinese ADRs may challenge the emerging narrative of Chinese markets as an alternative investment ground to the U.S.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。