Jul 18, 2022
[1 min Read]
If your journey is anything like mine, you would have caught on to the fact that Qudian's stock is trading 60% higher in today's premarket trading with very high trading volumes. Naturally, this makes me curious as to why this may be, however, a couple of quick searches on google and several stock news websites yielded no worthwhile results. This pushed my desire (to find out the reason behind QD being up by such a large amount) to new heights, and eventually lead me straight to the answer. An answer which I will link and attempt to simplify for your convenience is below.
Qudian released its "Food Progress Report" today (July 18th, 2022) at 5:32 am (EST), and it seems as though this is the sole reason for their large premarket move.
This report provided updates on their ready-to-cook meal business under the QD Food segment of their business. The food business has been QD's last strategic venture as it has only been operational since March 2022. However, in these 4 short months, QD has amassed 15 warehousing, assembly, and packaging facilities. These facilities have enabled Quidan to deliver its new product line to over 200 cities within China.
Quidan offers a selection of 10 dishes to their customers across China, with their most popular dishes including boiled fish with pickled cabbage, steamed pork with rice flour, and beer-braised duck. QD's customers can currently order these dishes (among others) through either Douyin's live streaming platform, QD Food WeChat, or the QD Food App.
However, this is just an appetizer for what is about to come (as this next point in my opinion is the reason why QD is up so largely). On July 17, 2022, QD hosted a "717 Foodies" festival on live stream, accumulating millions of viewers, which translated into QD selling over 9.5M of their dishes. Investors are excited and have already begun to speculate what this might mean for QD's next earnings release. Investors have sent the QD stock up this morning based on how much they think that these 9.5M meals sold will help QD, come their Q2 2022 earnings report.