NQ Sinks on Audit: Tech Winners and Losers

NEW YORK (TheStreet) Shares of LightInTheBox Holding  (LITB) continued to rise, jumping 3.17% to $6.83 nearly a week after they revised their second quarter 2014 guidance.

The international online retailer announced Friday that they were raising their Q2 guidance from $84-86 million to $86-88 million. This update raises the year-over-year increase in guidance from 19% to 22%. That day, LightInTheBox shares surged more than 25%.

"We are encouraged by the better-than-expected results for the second quarter," Alan Guo, the CEO of the Beijing-based company, said in a statement. "We look forward to providing investors with more details about our performance on our second quarter earnings conference call." 

Chinese e-commerce companies have performed particularly well this week. 58.com (WUBA), Dangdang (DANG), and JD.com (JD) all saw double-digit gains.

NQ Mobile (NQ) shares plunged 32.10% to $4.61 following the announcement of irregularities with the company's audit.

A company press release stated that auditors PricewaterhouseCoopers "would need to perform additional procedures and expand the scope of its 2013 audit work." The press release stated that the company "was considering PwC's request." In addition, the same press released announced that the company was replacing the chair of its audit committee, a highly unusual step in the middle of such an audit.

NQ has been plagued by accusations of fraud. For example, Muddy Waters Research, a firm run by short-seller Carson Block, called the company a "massive fraud," citing, among other things, cash balances are "highly likely to not be real." By 11:40 am yesterday, the volume of trades was almost double the company's daily average.

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