STOCKS TELEGRAPH

Tag: marketing

  • 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.

  • Bridgeline Digital, Inc. (BLIN) Stock Skyrockets as Latest Target of Meme Stock Phenomenon

    Bridgeline Digital, Inc. (BLIN) stock prices were up by a massive 26.84% as of the market closing on June 30th, 2021, bringing the price per share up to USD$4.30 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 25.58%, bringing it up to USD$5.40.

    Unbound CMS Contract

    June 22nd 2021 saw the company announced the signing of a long-term contract of Unbound CMS with one of the largest haircutting franchises in the U.S. With more than 1800 locations across the U.S., the customer has been a long term client with Unbound CMS since 2021, when their corporate site was designed and built by the Unbound Team. Over the years, Unbound integrated store locators and developed franchisee local sites, with each Unbound-powered franchise site having its own unique URL with webpages for each location.

    Unbound Merits

    The company made moves recently to consolidate the network of franchises under the main domain, hoping to streamline the overall digital experience, while also reducing costs over the long term. After market research into evaluating CMS options, Unbound was recognized as the most appropriate solution for the project. As per a key part of the closing of this franchise-specific renewal deal, Unbound will facilitate the provision of a powerful Local Pages solution. The contract to develop and implement the new digital strategy is set to last 36 months.

    Q2 2021 Financial Reports

    Total revenue for the second quarter of fiscal 2021, ended March 31st 2021, was reported at USD$2.9 million, up from the USD$2.7 million reported for the prior year period. With total revenue consisting of Licenses and Services revenue, the former exhibited 8% growth, while the latter grew by 2%. Gross profits were also up, by 16% up to USD$1.8 million for the quarter ended March 31st 2021, comparable to the USD$1.6 million reported in the prior year period.

    Meme Stock Phenomenon

    Despite these promising developments over the quarter, there has been no news coverage or change in the fundamentals of BLIN to justify the meteoric rise it has seen lately. It seems very likely that the company is fortuitously finding itself to be the next target of the meme stock phenomenon that has been taking over stock markets as of late. Driven by retail investors who use the social media platform Reddit, this phenomenon sees underperforming stocks with high short interests get pumped by a coordinated short squeeze.

    Future Outlook for BLIN

    Despite being rife with volatility on the basis of there not being sound reasons to invest in a company based on its merit, the activity affords BLIN extensive opportunities as it sees its equity value skyrocket. Investors are hopeful that the company will make moves to maintain the momentum generated by the Reddit-driven investor community.