STOCKS TELEGRAPH

Author: Shariq Khan

  • Danaos Corporation (DAC) stock gained in the Current Market; here is why?

    Danaos Corporation (DAC) stock gained in the current market after the Company announced that they have entered into new charted deals in a press release. DAC is valued at $78.63, gaining more than 6.19% from the previously closed value. At the end of the last trading session, the stock of DAC closed at $74.03. The stock traded volume in the previous trading session was around 308.13K shares.

    Reason for the DAC stock gain

    Danaos Corporation (DAC) announced in a press release today that they have entered into new charter deals for 11 of its vessels. They range between 2,500 to 10,000 TEU that have major liner companies. It will significantly enhance the cash flow visibility and charter coverage. According to the revenue weighted, the average contract duration of these charters is 4.7 years.

    Approximately $870 million was added to the Company’s contracted revenue backlog or the contracted EBITDA of roughly $700 million. Including these charters, as of December 31, 2021, the total contracted, operating revenue was $2.8 billion. It has an average contracted charter period of four years remaining. Besides, the working days are now 95% for 2022, 77% for 2023, and 57% for 2024 in the contract.

    Danaos Corporation (DAC) has also agreed to sell two 20-year-old 6,422 TEU vessels at $130 million. The buyers expect them delivered in November 2022. On July 1, 2021, Danaos Corporation (DAC) acquired these two vessels in a consolidation deal of Gemini Shipholdings Corporation, valued at $73 million.

    Effect on the DAC stock

    DAC gained in the market after the Company announced entering into 11 new charted contracts. The news positively affected the stock, and investors are taking a considerable interest In DAC. This month’s growth was massive, so the deal will bring more gains for the store.

    Conclusion

    Danaos Corporation’s (DAC) revenue will increase with this significant development, ultimately increasing its valuation. The stock price is also in a positive trend, so the stock could be a good choice for the investors in the long run.

  • Activision Blizzard, Inc. (ATVI) skyrocketed in the Current Market; here is why?

    Activision Blizzard, Inc. (ATVI) skyrocketed in the Current Market; here is why?

    Activision Blizzard, Inc. (ATVI) stock surged in the current market after the company announced that Microsoft had acquired them. ATVI was valued at $82.39 in the current market, gaining more than 26.01% from the previously closed value. At the end of the last trading session, ATVI closed at around $65.39. The stock volume traded in the previous trading session was around 11.62 million shares.

    Reason for the ATVI stock gain

    Activision Blizzard, Inc. (ATVI) announced in a press release today that Microsoft Corp. (MSFT) will acquire Activision Blizzard Inc. (ATVI). Activision Blizzard is a leader in game development and interactive entertainment content publisher. Microsoft will boost its growth with this acquisition across different gaming businesses like PC, console, mobile, and cloud to provide the foundation for the Metaverse.

    Microsoft will acquire Activision Blizzard for $68.7 billion or $95.00 per share, all paid in cash. This valuation includes the net cash of Activision Blizzard. After the deal, It will make Microsoft the world’s third-largest gaming company in terms of revenue.

    The current CEO of Activision Blizzard, Bobby Kotick, will continue his services at his current position. Along with his team, they will maintain their recent performance and focus on the growth of the business. When the acquisition is official, they will report to the CEO of Microsoft Gaming, Phil Spencer.

    The transaction will complete by the fiscal year 2023. The boards of directors of both Microsoft and Activision Blizzard have approved the transaction.

    Effect on the ATVI stock

    The stock of ATVI gained significantly after the massive acquisition. The investors are responding positively to the significant development in the company’s timeline. With this acquisition, Activision Blizzard will come under the vast brand umbrella of Microsoft. It will also complement Microsoft, making it the third gaming giant, having a diverse gaming portfolio.

    Conclusion

    This acquisition will increase the market share of Microsoft. The stock of ATVI could increase significantly in the future following the acquisition. Microsoft is a seasoned player in the industry. Its expertise will raise Activision Blizzard to new heights.

  • Summit Wireless Technologies, Inc. (WISA) stock is declining today; here is why?

    Summit Wireless Technologies, Inc. (WISA) stock is declining today; here is why?

    Summit Wireless Technologies, Inc. (WISA) stock declined in the current market after the company announced its preliminary results of revenues of fiscal 2021. WISA was valued at $1.28 in the current market, losing around 3.74% from the previously closed value. At the end of the last trading session, the stock of WISA closed at $1.34. The stock traded volume in the previous trading session was around 222.15K shares.

    WISA 2021 Preliminary Results

    • In the fourth quarter of 2021, the company expects around $2 million in revenue. It will increase by 90% from the fourth quarter of 2020. In the fourth quarter of 2020, the revenue was $1.038 million. The increase in the revenue is due to the introduction of Wave.
    • Summit Wireless Technologies, Inc. (WISA) expects fiscal 2021 revenue of around $6.541 million. It is an increase of 170% from fiscal 2020. The revenue in fiscal 2020 was $2.404 million.
    • As of December 31, 2021, the company expects preliminary cash and cash equivalents of around $13.1 million.
    • In the fourth quarter of 2021, the Wave attracted more than 1 million customers. The overall number in the whole fiscal year is more than 2 million. It is a massive increase of more than 445% from 2020 compared to the previous fiscal year. The numbers of customers were 365,800.
    • The fourth quarter of 2021 will be the 6th consecutive quarter seeing a consistent increase in the revenue.

    Effect on the WISA stock

    Summit Wireless Technologies, Inc. (WISA) is hoping for some positive numbers, but its value declined in the current market. It might be due to excessive trading after the demand of the stock. Seeing its previous trend, WISA might remain around the same position in the current market.

    Conclusion

    Summit Wireless Technologies, Inc. (WISA) outlook for fiscal 2022 is very optimistic. The company said that it would continue building WISA’s technology brand and expect to expand to the markets of Europe and China. It will help them to increase their customers between 3-5 million. They also intend to launch more products.

  • NextPlay Technologies, Inc. (NXTP) stock declined in the Pre-market; here is why?

    NextPlay Technologies, Inc. (NXTP) stock declined in the Pre-market; here is why?

    NextPlay Technologies, Inc. (NXTP) stock declined in the pre-market following its 3rd quarter results announcement. The stock of NXTP was valued at $0.73, losing more than 6.20% from the previously closed value. At the end of the last trading session, NXTP closed at $0.78. The stock volume traded in the previous trading session was approximately 1.84 million shares.

    Fiscal 2022 third-quarter highlights

    • The revenue of NextPlay Technologies was $4.2 million in the third quarter of fiscal 2022. It is an increase of 59% from the previous quarter. In the 3rd quarter of 2021, the revenue was zero.
    • The gross profit of NextPlay Technologies was $2.2 million. The consolidated gross profit improved to 53.5% from 51.9%.
    • NextPlay Technologies reported a strong balance sheet. As of the 3rd quarter, its assets are $121 million, and it has cash and cash equivalent up to $21.4 million.
    • NextPlay Technologies, Inc. (NXTP) has received conditional approvals for insurance and reinsurance licenses. It will enable the company to run digital primary insurance/reinsurance operations.
    • NextPlay Technologies, Inc. (NXTP) has launched NextPlay X Soma Labs; it’s a platform for NFTs and Metaverse.
    • NextPlay Technologies, Inc. (NXTP) also announced the MedTrek Fund. NextPlay will use its blockchain technology to securitize closed-end funds and build medical facilities.
    • NextPlay Technologies, Inc. (NXTP) made some changes in the upper management. Jorge E. Miro Hernandez will serve as president and COO of NextBank International. Carla P. Mendez was appointed as a chief administrative officer.

    Effect on the NXTP Stock

    The decline in the stock is not significant. Its value may regain because it might be affected by some external factors. Otherwise, its 3rd quarter reported was strong. In the past few days, NXTP has gained value.

    Conclusion

    NextPlay Technologies, Inc. (NXTP) growth rate is awe-inspiring. Its revenue has increased significantly compared to the 3rd quarter of last year. The gross margin is also very commendable. If the company managed to keep the growth rate consistent, its stock might gain significant value in the future.