Luckin Coffee Stock Logs Worst Day In Over 8 Months On Blue Bottle Deal Talk — Retail Goes All In On The Dip

Shares fell as investors weighed the risks of a potential shift into premium coffee through acquisitions.

• Coca-Cola’s Costa Coffee was also evaluated but is no longer viewed as a likely acquisition target, according to the report. 
• The talks come amid broader changes, including Luckin’s overseas expansion and efforts toward a U.S. relisting.
• Despite the selloff, retail sentiment stayed upbeat and traders framed the drop as a buying opportunity.

Luckin Coffee shares slid on Tuesday, putting the stock on track for its worst day in about eight months, as investors weighed reports that the Chinese coffee chain is exploring acquisitions in the premium segment at a time when it is also working toward a return to U.S. public markets.

The stock fell 7.6% to $31.89 on Tuesday, before edging up about 0.3% in after-hours trade.

Deal Speculation Spurs Selloff

Luckin and its backer, Centurium Capital, are reportedly holding early-stage discussions around potential acquisitions, including Nestle’s Blue Bottle Coffee. While the talks are preliminary and may not result in a deal, the possibility of a move into higher-end coffee appeared to unsettle investors, Bloomberg noted.

Shares fell as the market digested what such a shift could mean for a company best known for its low-priced drinks and rapid store expansion.

Premium Brands Said To Be Under Review

Luckin has supposedly been evaluating several options to raise its profile in the premium coffee space. In addition to Blue Bottle, the company has looked at the China operator of % Arabica coffee stores. Coca-Cola’s Costa Coffee was also considered but is no longer seen as a likely target, Bloomberg said. 

Meanwhile, Nestle has been reviewing strategic options for Blue Bottle with advisers, according to a Reuters report.

US Relisting Plans Take Shape

The talks of the acquisition emerged weeks after Luckin said it is actively exploring the option of relisting in the U.S., less than half a decade after it was forced off Nasdaq following an accounting fraud. At an event organized by the government in Xiamen in November, Luckin’s CEO Jinyi Guo said the company is actively pushing to go back onto a U.S. main board, though Luckin later said that no timeline had been set.

Luckin was on Nasdaq’s list from 2019 to 2020 before being kicked off the exchange after it admitted that it had fabricated more than $310 million in revenue. It subsequently paid $180 million to the U.S. Securities and Exchange Commission to settle charges, and has since gone through a restructuring that includes exiting Chapter 15 bankruptcy.

From Discount Coffee To Bigger Ambitions

Luckin has since re-emerged with a model focused on low prices and breakneck expansion, rapidly opening thousands of stores and eventually surpassing Starbucks’ store count in China. The chain has also expanded overseas, with cafes in Singapore, Malaysia, Hong Kong and, more recently, the U.S.

Luckin’s foray into premium coffee would mark a shift for the company as it looks to widen its appeal and position itself as a global challenger even as Starbucks sold a majority stake in its China business to a local investor last month. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for Luckin was ‘extremely bullish’ amid ‘extremely high’ message volume.

One bullish user said they went all in on Luckin, selling other holdings to buy more shares on the dip.

Another user speculated, “Luckin like it will settle in the low $20 by EOY. Still time to scratch up what is left.”

Luckin’s stock has risen 24% so far in 2025.

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