STOCKS TELEGRAPH

Tag: CooTek (Cayman) Inc

  • CooTek (Cayman) Inc. (CTK) Stock Plunging Deep in Premarket Following Announcement of Date of Financials Release.

    CooTek (Cayman) Inc. (CTK) is a leader in mobile internet business engaged in mobile gaming, virtual literature and novels, and scenario-based content apps. The company offers client-focused features, to make striking apps for the targeted clientele. One of the main and important products of the company to support 110 languages at a time is TouchPal smart input method.

    The price of CTK stock during regular trading on March 4, 2022, was $0.21 with a loss of 12.3%. At last check in the premarket on March 7, 2022, the stock plunged further by 9.3%.

    CTK: Events and Happenings

    On March 7, 2022, CTK reported that it will release its fourth-quarter 2021 financial statement ended December 31, 2021, on March 15, 2022. On January 28, 2022, CTK announced that it outdid in the list of December 2021 Most Downloaded iOS Chinese Overseas Games, with a total of up to 2.5 million downloads and a 216.5% monthly increase. On Google Play, it was positioned the second place on the list. On January 14, 2022, CTK updated on the receipt of the notification by NYSE regarding

    • Non-compliance with the NYSE’s standards due to its shareholders’ equity and total market capitalization.
    • Its due date for the submission of a business plan that demonstrated compliance is April 5, 2022,and
    • Its applicable cure period to reclaim compliance expires on July 5, 2023.

    CTK: Key Financials

    On December 8, 2021, CTK announced its unaudited financial statement for Q3 2021 ended September 30, 2021. Some of the important features are as follows

    Revenue 

    Net revenue in the third quarter of 2021 was $51.1 million corresponding to $105.7 million in the same quarter of 2020. The company recorded a decrease of 52% in its net revenue over the year. Also, it missed the revenue estimates by $31.3 million.

    EPS

    Net loss basic and diluted in Q3 2021 was $0.4 million or $0.0001 per share versus $22.0 million or $0.007 per share in the same quarter of 2020. The company observed a considerable decline in its net loss over the year and also EPS estimates remained in line with the estimations.

    Conclusion

    CTK stock downplayed 62% year-to-date as the company is still facing pandemic challenges. Its stock plummeted in the current premarket session as the company reported its financial statement release date. Also, the company is gearing for the release of the financial results and estimates revenue of about $49.6 million.

  • CooTek (Cayman) Inc. (CTK) stock Rebounds After Hours Following its Descend to 52-week Low

    CooTek (Cayman) Inc. (CTK) stock Rebounds After Hours Following its Descend to 52-week Low

    On January 18, CooTek (Cayman) Inc. (CTK) stock rebounded in the after-hours following its descend during the regular session. The stock had been falling down since before the company announced receiving a non-compliance letter from NYSE.

    During the regular session, the stock varied between $0.4135 and $0.3533 at 792.02K shares. CTK closed the session at $0.3550, losing a huge 13,69%. Following the big loss, the stock rebounded in the after-hours to gain 7.04%. Consequently, the stock was trading at $0.3800 per share in the after-hours on Tuesday.

    The mobile internet company, CooTek (Cayman) Inc. develops mobile applications and artificial intelligence technology. Currently, its 62.28 million outstanding shares trade at a market capitalization of $27.64 million.

    CTK Stock Movement and Reasons

    On January 14, the company announced receipt of the NYSE non-compliance letter. While the announcement was responsible for further fuelling CTK’s decline, it had been in the red even before that. While already being in the red, the addition of the non-compliance letter caused the stock to reach its new 52-week low. Hence, the stock dropped down to $0.3533 in Tuesday’s regular session. Therefore, this brought a good buying opportunity for investors. Resultantly, the stock rebounded in the after-hours on Tuesday.

    Overall, CTK stock has seen some major losses, as its lost 18.01% in the past five days alone. Moreover, the stock stands at a year-to-date loss of 42.21% while it subtracted a huge 86.90% last year.

    NYSE Non-Compliance Letter

    As per the announcement, the company received a non-compliance letter from the New York Stock Exchange, dated January 05, 2022. According to the letter:

    • The company is in non-compliance with the NYSE standards because of its total market capitalization and stockholders’ equity.
    • April 05, 2022, is the given due date for CTK to submit a business plan demonstrating compliance.
    • On July 05, 2023, the applicable cure period for regaining compliance will expire.

    Furthermore, the company is in non-compliance with NYSE’s continued listing standards as its total market capitalization has been below US$50 million for consecutive 30 days. Additionally, its stockholders’ equity is also less than US$50 million.

    Based on the announcement, the company is working on regaining compliance with NYSE listing standards.

    CTK Financial Highlights

    In the third quarter of 2021, the company’s revenues decreased 52% year over year to US$51.1 million. Comparatively, the year-ago quarter’s revenues were $105.7 million.

    CTK incurred a net loss of US$0.4 million in Q3 of 2021, against $22.0 million in the year-ago quarter.

  • CooTek (Cayman) Inc. (CTK) Stock in Recovery Mode as it Finally Turns Green in the After Hours

    CooTek (Cayman) Inc. (CTK) stock gained 22.15% in the after-hours, finally entering green after more than a week. The stock has been trading in the red since the company posted its Q3 earnings on December 08.

    In the regular trading session, the stock lost 10.37% at the closing price of $0.4831. The tides turned in the after-hours, as the stock went up to reach $0.5901 at 1.15M shares.

    Currently, the 62.28 million outstanding shares of CTK trade at a market capitalization of $36.22 million.

    CTK stock Movement

    The CTK stock has been in the red since a day before the company announced its Q3 earnings. The deficient earnings did nothing but plunge it further down in the red. Trading and closing below the price of $1.00 for a long time, resulted in the company receiving a non-compliance letter. Moreover, the company announced the receipt of the NYSE non-compliance letter on December 13. Hence, this news did not help the stock at all, as it continued to trade in the red. Consequently, the stock lost 25.68% in the previous five days alone.

    Currently, the stock seems to be finally rebounding after being in the red for so long. CTK started trading in the green during the aftermarket on Wednesday.

    Non-Compliance Letter

    On December 13, CTK announced receiving a letter from the New York Stock Exchange, dated December 06. As per the letter, CTK’s American Depository Shares (ADSs) price is below the compliance standard of $1.00 or above. Further, the non-compliance letter was issued as the ADSs closed at a price below $1.00 for over 30 days consecutively. Moreover, the company has six months to bring the ADS price to or above $1.00 for regaining compliance. If CTK failed to regain compliance within the due period, NYSE will start suspension and delisting protocol.

    Moreover, the company announced that it will monitor market conditions closely and overview its options.

    CTK’s Financials

    The company announced its third-quarter unaudited financial results on December 08, 2021. CTK had revenue of $51.1 million in the third quarter of 2021, against $105.7 million in the year-ago quarter. This shows a decrease of 52% year-over-year.

    Further, the gross profit margin decreased by 58% year-over-year to $42.0 million, against $98.9 million a year ago.

    In addition, the adjusted net income was $0.4 million, against $1.1 million in the previous quarter of 2021.