Muddy Waters Joins Short Sellers Pounding Away at GSX
- At least four detractors say GSX Techedu has overstated sales
- Chen says GSX is misunderstood; many analysts have buy rating
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To some short sellers, GSX Techedu Inc. is an “almost completely empty box,” with numbers that are too good to be true. To many analysts -- including those at Credit Suisse Group AG, which led the company’s initial public offering -- the Chinese online education firm remains a buy, and detractors just don’t understand the business model.
GSX is an after-school tutoring platform whose American depositary receipts began trading last June and had more than quadrupled earlier this year, boosting the fortune of billionaire chairman and founder Larry Chen.