Mobility technology platform DiDi Global Inc. (DIDI) recently announced that it will remove its “DiDi Chuxing” mobile app from China as per the directions of the Cyberspace Administration of China (CAC). The company’s global operations are likely to remain unaffected.
CAC passed the orders as it believed that DiDi was collecting personal information of its users, which was in violation of Chinese laws and regulations.
Now that the app is no longer allowed to be downloaded in China, the company expects its revenues to take a hit in the country. Meanwhile, users who have downloaded the app before the orders were passed can continue using it. (See DiDi stock chart on TipRanks)
The stock has a Moderate Buy consensus rating based on 1 Buy. Atlantic Equities analyst Xiao Ai initiated a Buy on the stock with a price target of $25 (61% upside potential). Shares of the company have gained 9.8% over the past year.