Chinese Luxury Watch Importer Top Win Flops On Nasdaq Debut Amid Whack From Trump Tariffs, But Retail Wants In On 'Pump And Dump'

Hong Kong-based luxury watch importer Top Win International Ltd made a dramatic U.S. market debut on Wednesday, soaring nearly 90% on the Nasdaq before reversing into the red as markets reeled from President Donald Trump's retaliatory tariffs.

Top Win announced the pricing of its initial public offering (IPO) at $4.00 per share, which included 2,664,000 ordinary shares.

The stock hit an intraday high of $13.20 but soon plunged as Trump unveiled sweeping reciprocal tariffs targeting what his cabinet has dubbed the "worst offenders" in U.S. trade. 

In extended trading, shares tumbled over 25%.

China now reportedly faces tariffs exceeding 50% on many goods, while other major trading partners were also hit with levies. 

Switzerland, a key player in luxury watchmaking, saw a 31% tariff imposed on its U.S. exports, affecting brands like Rolex, Patek Philippe, Vacheron Constantin, Longines, and Tissot.

The ripple effect is inevitable, as importers must decide whether to absorb the added costs or pass them on to retailers or consumers by hiking prices.

Top Win primarily operates in Hong Kong, sourcing its goods from Europe, Japan, and Singapore, according to a regulatory filing. However, the company stated that its growth strategy includes expanding its market presence by reaching new geographical customers.

On Stocktwits, Top Win's stock was the top trending symbol late Wednesday night, with its follower count soaring by 277% and message volume ballooning by over 4,000% in the past 24 hours.

Sentiment on the platform was overwhelmingly bullish. Several retail watchers said they were buying the after-hours dip, labeling the stock a "pump and dump."

"No one knows what will happen tomorrow. These are lotto plays. It's a meme, and the market may pump it," said another user.

According to its prospectus filing with the U.S. Securities and Exchange Commission, Top Win reported revenue of $7.9 million for the six months ended June 30, 2024, down from $11.5 million a year earlier. 

The company posted a net loss of $0.2 million for the first half of 2024, compared to a net income of $0.3 million a year earlier.

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