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Tag: CNET Stock

  • ZW Data Action Technologies Inc. (CNET) stock has experienced a downfall – What’s happening?

    ZW Data Action Technologies Inc. (CNET) experienced a decrease of 23.75% in aftermarket following the update that Meta earnings undergo disappointment as Facebook’s parent pushes into the metaverse. However, the last trading session closed at $0.80 with a decrease of 4.75%.

    Cooperation for NFT and Metaverse Market by CNET – What’s up?

    On 21st December 2021, CNET announced that it has collaborated with Guangzhou Digital Gold Information Technology Co., Ltd (Digital Gold Transformation). This agreement will be helpful in the development of IP+NFT products. Digital Gold Information is a firm committed to the creation of IP peripheral goods and IP business operations. Offline interaction and display, promotional strategies and co-branding, peripheral products, and digital merchandise are all part of its business. During this collaboration, the two parties will create the IP + NFT + Metaverse business model. This will be done by supplying peripheral items and digital commerce services for recognized IPs.

    What’s Next?

    NFT’s primary use cases rapidly broaden from bitcoin and games to collectibles, artwork, domain names, identification, and other sectors. CNET believes that IP + NFT + Metaverse will be a crucial implementation of the blockchain technology, as the interconnections of NFT with metaverse may be the future focus in the technology industry.

    Strategic Cooperation on Blockchain + Insurance by CNET 

    On 30th November 2021,  CNET reported that it has entered into a collaboration with Shanghai Weiyou Information Technology Co., Ltd. Certain “Blockchain + Insurance” services for small and medium-sized businesses are intended to be supplied through the Platform, adding to the insurance ecosystem by upgrading blockchain technology. Moreover, based on ZW Data’s blockchain technology, the two companies will collaborate to create and launch a cost-effective insurance platform.

    Furthermore, Weiyou Information will offer one-stop services through the Platform, ensuring that all connected insurance processes and data can be validated and tracked. Not only this but it will also help in enhancing transparency and credibility for all parties involved. Apart from Klover InsurTech’s present auto insurance, ZW Data and Weiyou Information will collaborate on additional forms of insurance product research and development. Meanwhile, in order to promote the Platform, the Company will work with a number of new media outlets.

    So what?

    Blockchain and other internet technologies are fast advancing and becoming a backbone in all industries. This will cause old corporate management models to be disrupted. The insurance business is projected to become a large and crucial market for blockchain implementation. Last but not the least, the company hopes that this collaboration will help CNET grow the blockchain-related services and technology in the long run.

  • ZW Data Action Technologies, Inc. (CNET) Stock Exhibits Volatility After Having Been Selected as Latest Meme Stock

    ZW Data Action Technologies, Inc. (CNET) stock prices were up by 6.50% as of the market closing on July 1st, 2021, bringing the price per share up to USD$2.13 at the end of the trading day. After-hours trading saw the stock plummet by 7.04%, bringing it down to USD$1.98.

    Revenue Reports

    Revenues for the quarter ended March 31st, 2021 were reported at USD$8.40 million, a 91.5% increase from the USD$4.38 reported in the same quarter of the prior year. The year-over-year difference is largely attributable to increases in revenue from the company’s internet advertising and related service business segment. This, in turn, has benefitted from the economic recovery since the Covid-19 outbreak in the second half of the prior year.

    Costs of Revenues

    Q1 2021 total cost of revenues came out to USD$9.11 million for the quarter ended March 31st, 2021, up a massive 161.5% from the USD$3.49 million reported for Q1 2020. The year-over-year difference was largely driven by increases in cost derived from the distribution of the right to use search engine marketing services that CNET had previously purchased from key search engines. Further contributing to the yearly difference were costs related to the provision of Internet advertising services with various ad portals.

    Gross Loss and Margins

    Gross loss for the quarter ended March 31st, 2021 was reported at USD$0.72 million down from the gross profit of USD$0.90 reported in the same period of the prior year. This difference over the year is primarily attributable to the negative gross margin rate resulting from the main stream of service revenues. Accordingly, the gross loss margin was 8.5% for the quarter, while the prior-year quarter reported a gross profit margin of 20.5%.

    Meme Stock Phenomenon

    With no recent news coverage since the end of May 2021 and no significant changes in fundamentals, CNET seems to have found itself to be the target of the meme stock phenomenon that has resurged through the markets lately. After the massive volatility around the end of June 29th, 2021, CNET stock continues to dip and rally in significant swings. Driven by retail investors who coordinate on the social media platform Reddit to execute a collaborative short squeeze of underperforming companies with little to no sound bases for being invested in, meme stocks have been all the rage lately.

    Future Outlook for CNET

    Armed with the fortuitous strengthening of the position of its equity value, CNET is poised to capitalize on the opportunities presented to it in a bid to usher in more organic growth. Investors are hopeful that management will be able to keep the snowball going rather than a massive downward correction, as is seen very often with meme stocks.