Why Did Lixiang Education Plunge 21.49%?

On May 7, 2025, Lixiang Education experienced a significant drop of 21.49% in pre-market trading, indicating a substantial decline in investor confidence.

Lixiang Education's stock price decline can be attributed to several factors. The company issued second-quarter sales guidance that fell below market estimates, which likely contributed to the negative sentiment among investors. This guidance suggests that the company may face challenges in meeting its revenue targets, leading to a decrease in stock value.

Additionally, the broader market trends and investor sentiment towards the education sector may have played a role in the stock's performance. The overall market conditions and any negative news related to the education industry could have exacerbated the decline in Lixiang Education's stock price.