NEW YORK (TheStreet) -- 500.com (WBAI - Get Report) plummeted nearly 10% after a downgrade from Deutsche Bank and as China-based stocks get hammered over Thursday's session. By mid-afternoon, shares took off 9.9% to $40.
Deutsche Bank downgraded the Chinese online lottery service to "sell" from "hold" with a price target of $26.
"We believe the run-up in 500.com shares leaves it exposed to perennial issues around licensing and regulation. The [Ministry of Finance], for instance, is likely close to issuing new sports lottery licenses and maybe even welfare licenses (the latter positive to 500.com if it becomes a recipient). A limited licensing regime would likely be positive for 500.com, but many licenses could drive up competition," wrote analyst Alan Hellawell in the report.
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