Didi Global (DIDI.US) is surging in today's premarket trade. Shares of the company are trading 60% above Friday's closing level following a Wall Street Journal report. WSJ reported that Chinese authorities are about to end a probe into the company. Report says that it may happen as soon as this week. This would allow Didi's app to return to mobile stores - a critical issue for survival of the ride-hailing company. However, this does not mean that Didi will not face any punishment for how it handled data security. Wall Street Journal says that Didi is facing a potentially massive financial penalty. On top of that, WSJ says that the company may be forced to transfer 1% of its shares to the state, which would increase the influence of Chinese authorities on the company going forward.
While this stock is currently trading at a 60% premium compared to Friday's close, this massive jump would be barely noticeable on the company's chart. Share price of Didi slumped more than 80% off its peak in September 2021 and today's price jump would leave the stock trading around 70% below record highs.
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Source: xStation5
