STOCKS TELEGRAPH

Tag: Technology

  • Applied Optoelectronics, Inc. (AAOI) Stock Continues Downward Trend Despite Promising Q2 2021 Guidance

    Applied Optoelectronics, Inc. (AAOI) Stock Continues Downward Trend Despite Promising Q2 2021 Guidance

    Applied Optoelectronics, Inc. (AAOI) stock prices were down 1.31% as of the market closing on July 15th, 2021, bringing the price per share down to USD$7.52. Subsequent premarket fluctuations saw the stock fall by another 5.59%, bringing it down to USD$7.10.

    Weathering the Storm

    With the company having appropriately forecasted market dynamics, its financial reports for the first quarter of 2021 were in line with its expectations. While the data center business reported minor softening, the stellar recovery seen by the telecom market more than made up for it, as did the continued strength of the company’s CATV business. The quarter culminated with a significant backlog of CATV products, which the company expects to facilitate the driving of growth in the second quarter of 2021.

    Financial Improvement

    GAAP revenue for the first quarter of 2021 was reported at USD$49.7, up from the USD$40.5 reported for the first quarter of 2020. The previous quarter reported GAAP revenue in the amount of USD$52.3. GAAP gross margin was up to 21.6% for the quarter, up from the 15.7% reported in the prior-year quarter. Non-GAAP gross margin was up to 24.6% from the 19.5% reported for the first quarter of 2020, down from 27.5% in the prior quarter.

    GAAP Net Loss

    AAOI reported GAAP net loss in the amount of USD$15.6 million for the 2021 quarter, representing a net loss of USD$0.59 per basic share. This is an improvement from the USD$16.8 million net loss reported for the prior year quarter, representing a net loss of USD$0.83 per basic share for Q1 2020. However, this is still up from the USD$13.4 million reported for Q4 2020, coming out to USD$0.57 per basic share.

    Trajectory of Success

    The company anticipates revenues for the second quarter of 2021 to be in the range of USD$51 million and USD$56 million. Based on market dynamics, non-GAAP gross margin is expected to be in the range of 25.5% and 27.5%. Non-GAAP net loss is forecasted to be in the range of USD$3.8 million to USD$5.6 million, representing a loss per share of USD$0.14 to USD$0.2, based on roughly 27.2 million shares.

    Future Outlook for AAOI

    With the pandemic continuing to rage on despite accelerated global efforts towards universal immunizations, AAOI’s investors are looking to the company for strategic decisions or changes in fundamentals to address the persisting adverse market environment. The company is keen to allocate resources towards facilitating meeting its guidance for the second quarter of 2021.

  • Endo International PLC (ENDP) Stock Continues Trending Down as Legal Trials Continue

    Endo International PLC (ENDP) stock prices were down 3.06% as of the market closing on July 15th, 2021, bringing the price per share down to USD$3.49 at the end of the trading day. Subsequent premarket fluctuations have seen the stock dip by 4.01%, bringing it down to USD$3.35.

    Health Canada Approval

    June 9th 2021 saw the company announce the approval of Wakix (pitolisant) by Health Canada for the treatment of excessive daytime sleepiness (EDS) or cataplexy in adult patients with narcolepsy. The approval of the treatment by Health Canada will facilitate the provision of a much-needed treatment for Canadians that suffer from narcolepsy. The treatment also affords patients the option to manage their EDS or as a treatment for their cataplexy attacks. The company is continuing to offer novel treatment options to help support the unmet needs of the Canadian patient demographic.

    ENDP Partnerships

    The company intends to collaborate with the Canadian Agency for Drugs and Technologies in Health (CADTH), as well as the Institut national d’excellenceensanteen services sociaux (INESSS). This partnership will facilitate the hasty provision of Wakix to its patients. 2018 saw the company’s subsidiary, Endo Ventures Ltd., entered into an agreement with Bioproject SCR. This partnership will see the company register, commercialize and distribute pitolisant on an exclusive basis across Canada. The commercialization of pitolisant in Canada will be conduced by Paladin Labs, an operating company of ENDP.

    Ahead of the Competition

    Wakix is in a class of its own, being the first and only Health Canada approved treatment for EDS and cataplexy symptoms in adult patents with narcolepsy. The first-in-class highly selective histamine 3 receptor antagonist/inverse agonist works through an innovative and unique mechanism of action. It increases the levels of histamine and other wakefulness promoting neurotransmitters in the brain.

    Mechanics of Wakix

    The tablet is to be taken once daily, every morning upon waking up. Wakix is thus far the only treatment for cataplexy that is not a controlled drug, having been approved by Health Canada. The treatment is currently marketed across Europe and the United States, serving as a registered trademark of Bioproject Europe Ltd.

    Future Outlook for ENDP

    Armed with the massively successful scope of the commercialization of Wakix having proliferated the entirety of the North American market, ENDP is poised to capitalize on the expanded opportunities for growth. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • DiDi Global Inc. (DIDI) Stock Continues Downward Spiral as Chinese Government Continues Crackdown on Tech Space

    DiDi Global Inc. (DIDI) Stock Continues Downward Spiral as Chinese Government Continues Crackdown on Tech Space

    DiDi Global Inc. (DIDI) stock prices were down 2.06% as of the market closing on July 15th, 2021, bringing the price per share down to USD$12.36 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall 6.96%, bringing it down to USD$11.50.

    CAC Investigation

    July 16th 2021 saw the Cyberspace Administration of China (CAC) report that officials from at least seven departments initiated the conducting of a cybersecurity review of DIDI, having sent officials on July 16th, 2021. The regulatory officials included the CAC, Ministry of Public Security, Ministry of State Security, Ministry of Transport, Ministry of Natural Resources, State Taxation Administration, and State Administration for Market Regulation.

    Government Involvement

    With the CAC not offering many details in its statement, the involvement of the myriad of government agencies signals the heavier regulatory pressure on the company, which will celebrate a decade of being in business in the upcoming year. The Chinese government is in the process of revamping its policies in regard to the privacy and data security. This includes the drafting of a Personal Information Protection Law, which will see tech platforms being required to impose stricter measures to ensure secure storage of user data.

    New Legislation

    September 2021 will see China implement its new Data Security Law, which will require companies that process “critical data” to conduct risk assessments and submit reports. The regulations will also call on organizations that process data affecting the country’s national security to submit annual reviews. The company currently has a market cap of around USD$60 billion and is reported to store all of its Chinese user and road data in China.

    DIDI IPO

    The Cyberspace Administration of China launched the data-related cybersecurity investigation into the company two days after its IPO. The New York initial public offering saw the company generate USD$4.4 billion in the capital. Furthermore, the company was ordered by the regulators to remove its application from the market space in China. This is expected to negatively affect the company’s revenue, despite the app continuing to be used by users who already had it downloaded.

    Future Outlook for DIDI

    With the Chinese government cracking down on companies like DIDI, shareholders are concerned about the future prospects of the commercial potential of their investments. The company is keen to comply with the newly announced regulations in a bid to consolidate its market footprint and mitigate the losses expected.

  • IMV, Inc. (IMV) Stock Plummets Following Announcement of Pricing of its Registered Public Offering

    IMV, Inc. (IMV) stock prices were down by 24.52% shortly after market trading commenced on July 15th, 2021, bringing the price per share down to USD$1.57 early on in the trading day.

    Public Offering

    July 15th, 2021 saw the company announce the pricing of its underwritten public offering, wherein the company would oversee the sale of 14,285,714 units to the public. Each unit will be priced at USD$1.75 per unit, with the offering expected to generate gross proceeds in the amount of roughly USD$25 million, before the deduction of expenses related to the offering. The capital generated is exclusive of ay proceeds expected from the exercising of underlying warrants.

    Details of the Offering

    Each unit will be comprised of a single common share and three quarter of one common share purchase warrant. Each warrant will allow its bearer to purchase one common share at a price of USD$2.10 per common shares, with an expiry date of 60 months following the closing date of the offering. Given the satisfaction of customary closing conditions, the offering is expected to close around July 20th, 2021.

    Allocation of Capital

    The company plans to use the net proceeds from the offering for the continued clinical development of maveropepimut-S in diffuse large B cell lymphoma, breast cancer, ovarian cancer, bladder cancer, and microsatellite instability high. The funds will also be allocated towards the start of the clinical development of a new product, DPC-SurMAGE, in bladder cancer, as well as the continued development of the company’s proprietary drug delivery platform (DPX).

    Solid Liquidity Position

    IMV reported a solid liquidity position of USD$30.5 million in cash and cash equivalents as of March 31st, 2021, in addition to having access to working capital in the amount of USD$31.6 million. This is up from the USD$26.3 million in cash and cash equivalents, and USD$25.6 million in working capital as of December 31st, 2020. As per its existing plan of operations, and discounting the USD$47.7 million remaining under its USD$50 million ATM facility executed in October 2020. The company expects its funds to see its operations through to Q1 2022.

    Future Outlook for IMV

    Armed with the influx of capital from its offering further consolidating an already strong liquidity position, IMV is poised to capitalize on the opportunities afforded to it. The company is keen to leverage its extensive resources to push for a continued trajectory of success. Investors are hopeful that the management will be able to facilitate significant and sustained increases in shareholder value.

  • AMC Entertainment Holdings, Inc. (AMC) Stock Rebounds from Four Consecutive Days of Downward Spiral

    AMC Entertainment Holdings, Inc. (AMC) stock prices were up 9.72% shortly after the trading day commenced on July 15th 2021, signaling a recovery from a steep decline over the past few days. The stock currently sits at a price of USD$36.68.

    AMC Stock Price Fluctuations

    AMC Entertainment share prices were down significantly on Wednesday, July 14th, 2021, trading below half of its recent peak prices, putting retail investors to the test. July 15th, 2021 saw the stock recover from four straight days of losses, having closed at USD$33.43 before the resurgence. This represents a 54% decrease from its all-time high of USD$72.62, which it hit in early June of 2021. The stock fell to USD$33.25 in the past several weeks, its lowest point since June 1st, 2021.

    Meme Stock Phenomenon

    AMC has been at the focal point of the recent meme stock phenomenon that has been proliferating the markets as of late, marking the rise of the retail investor as bearish hedge funds bear the brunt of the movement. Its status as a meme stock has seen the stock sit at a price 1476% higher than its price from a year ago. Shareholders are concerned that the dip in performance would start a snowball effect as investors lose confidence and jump ship, fearful of further losses.

    Post-Pandemic Economy

    The decline in AMC equity value came in spite of a strong weekend at the box office, when Walt Disney Co. and Marvel’s collaborative superhero adventure movie, Black Widow, garnered USD$80 million in what has been the biggest opening weekend for a movie since the onset of the global coronavirus pandemic. Disney generated an additional USD$60 million globally from direct-to-consumer sales via its streaming service, which has become a major competitor for movie theaters.

    Expected Financials

    The company expects to report USD$3.16 in adjusted loss per share on revenue of USD$2.41 billion. As of the close of the trading day on July 13th, 2021, 16% of the companies shares were sold short, coming out to a total of 78 million shares. This is comparable to the 75 million shares sold short as of June 30th, 2021.

    Future Outlook for AMC

    Armed with the recent recovery of its stock value, AMC is poised to capitalize on the resurgence of the momentum that has carried the company through a stellar and fortuitous year. The company is keen to leverage its resources to drive in sustained and organic growth as the culmination of the global pandemic looms closer. Investors are hopeful for significant and sustained increases in shareholder value over the long term.

  • Datasea, Inc. (DTSS) Stock Skyrockets Following Announcement of 5G Agreements with Six Chinese Companies

    Datasea, Inc. (DTSS) stock prices soared by 46.4061% some time after market trading commenced on July 14th, 2021, bringing the price per share up to USD$4.2897 early on in the trading day.

    Purchase and Distribution Agreements

    July 14th, 2021 saw the company announce the signing of six purchase and distribution agreements by its wholly-owned subsidiary company, ShuhaiZhangxun Information Technology. The agreements will provide 5G Message-marketing Cloud Platform (5G MMCP) Version 3.0, while further enhancing product availability across China by adding new district partners. 5G MMCP is designed to unify customer and prospect marketing signals in a single view with functions such as precise SaaS value-added services, data monetization, and message marketing.

    Details of Agreements

    The companies that DTSS entered into the agreement with are spread out across Nei Mongol, Anhui, Chongqing, and Zhejiang. As per the agreement, DTSS and its partners will collaborate to capitalize on the exclusive authorization in designated districts in regard to the distribution of 5G MMCP Version 3.0, with access to commissions from sales. In return, the partnering companies will compensate DTSS for the provision of 5G messaging products and services. The total value of the deals comes out to roughly USD$136,940, of which DTSS has received USD$75,796.

    Building on Success

    The company’s research and development team continues its ongoing efforts to advance and consolidate its product offerings, with the constant development proving transformational, with the right execution. Concurrently, the company is continuing the rapid expansion of its distribution network across the country, with its most recent partnerships signaling the success of their strategy.

    Expanding Scope of DTSS

    The company has also reported seeing a surge in demand, as well as increasing inquiries from customers and business partners in regard to 5G MMCP. With the company pushing for the expansion of the scope of commercialization of 5G messaging to be introduced in the Chinese market, the company is keen to work closely with its customers and business partners in order to expand and consolidate its market footprint with a comprehensive marketing plan.

    Future Outlook for DTSS

    Armed with several new collaborative partners, DTSS is keen to leverage the resources at its disposal to continue proliferating the telecommunications market. Current and potential investors are confident that management will be able to allocate resources appropriately, so as to ensure significant and sustained increases in shareholder value.

  • eMagin Corp. (EMAN) Stock Undergoes Minor Volatility Coinciding with Participation in TechBlick Conference

    eMagin Corp. (EMAN) stock prices were down 6.03% at the end of the trading day on July 13th, 2021, bringing the price per share down to USD$2.96. Subsequent premarket fluctuations have seen the stock recover by 2.36%, bringing it up to USD$3.03.

    Revenue Breakdown

    The first quarter of 2021 saw the company report total revenues, which consists of both product revenue and contract revenue, in the amount of USD$6.8 million, up from the USD$6.7 million reported in the prior year quarter. Product revenue for the quarter were reported at USD$6.1 million, USD$0.5 million improvement from the numbers reported for Q1 2020. This increase was largely driven by the increase in display revenues, which, in turn, were derived from higher sales to medical and veterinary customers. Contract revenues were down to USD$0.7 million from the USD$1.1 million reported in the prior year quarter, reflecting the completion of various government contracts in the 2020 quarter.

    Gross Margin and Profit

    Total gross margin for the quarter was reported at 25%, with a gross profit of USD$1.7 million. This is comparable to the 21% gross margin and USD$1.4 million in gross profits for the 2020 quarter. The year-over-year improvements were largely driven by improvements in yields, higher product revenues, and the impact of a change in overhead allocation. The gains were partially offset by lower contract revenues for the 2020 quarter.

    Net Loss Reports

    Net loss for the 2021 quarter was reported at USD$7.4 million, representing a net loss of USD$0.10 per share, up from the USD$1.4 million in the prior year quarter, representing a net loss of USD$0.03 per share. This year-over-year difference is largely attributable to USD$7.2 million non-cash loss related to the change in fair value of a warranty liability for the current period.

    Solid Liquidity Position

    The company reported a solid liquidity position of USD$10.7 million in cash and cash equivalents as of March 31st 2021. Further consolidating the healthy financial position is the availability of USD$8.3 million in working capital. The first quarter of 2021 saw the company repay USD$1.7 million as per its asset-based lending facility, as well as realized proceeds from the exercise of warrants in the amount of USD$5.1 million.

    Future Outlook for EMAN

    Armed with a solid liquidity position and the success of its quarterly financial report, EMAN is poised to capitalize on the continued growth it expects for the upcoming quarters. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to extrapolate the company’s recent success, resulting in significant and sustained increases in shareholder value.

  • Energous Corp. (WATT) Stock Trending Higher Following Availability of Latest Wireless Charging Technology

    Energous Corp. (WATT) stock prices were down by 5.67% as of the market closing on July 13th, 2021, bringing the price per share down to USD$2.33. Subsequent premarket fluctuations have seen the stock rise by 4.29%, bringing it up to USD$2.43.

    Active Energy Harvesting Developer Kit

    July 14th 2021 saw the developer of WattUp announce the availability of its newest 5.5W Active Energy Harvesting Developer Kit, which will serve to enable at-a-distance wireless charging for the expanding ecosystem of industrial Internet of Things and other connected devices. This is a major step forward from the existing passive solutions that harness ambient energy from their surroundings, typically offering very low amounts of power. They are also unpredictable in terms of how much power is generated.

    Functionality of the Kit

    The company’s active energy harvesting solution includes a dedicated transmitter that has a 5.5W output of conducted power in a designated area or direction via the RF-based, WattUp wireless charging technology. The RF-based energy is collected by Energous-enabled receiving devices, which have the facility to be combined with RF energy harvesting IC technology from e-peas.

    Scope of Technology

    The company’s 5.5W active energy harvesting solution supports the charging of anywhere from one to several devices, with a single transmitter facilitating the simultaneous charging of several devices. The active energy harvesting technology is applicable to a myriad of industries and applications, ranging from drug store monitors and patient trackers in a healthcare setting to smoke detectors and motion sensors in a smart home. The technology also serves to facilitate fault prevention and other safety sensing in an industrial environment.

    Reliability of Technology

    The developer kit facilitates the incorporation of active energy harvesting into the solutions of developers of wireless devices while ensuring consistent and safe power levels. The pioneering technology serves to support a much wider range of IoT devices than ever before, fulfilling the requirement of guaranteed levels of power not addressed by existing passive energy harvesting technologies, establishing a basis for exponential growth in more power-critical applications.

    Future Outlook for WATT

    Armed with a technology that is set to revolutionize the wireless charging space, WATT is poised to capitalize on the consolidation and expansion of its market footprint. Investors are hopeful for the expansive scope of commercialization and accelerated proliferation of the technology across various market sectors, thus driving increases in shareholder value.

  • MediaCo Holding, Inc. (MDIA) Stock on a Rollercoaster Ride as Latest Target of Meme Stock Phenomenon

    MediaCo Holding, Inc. (MDIA) stock prices plummeted by 51.18% as of the market closing on July 13th, 2021, bringing the price per share down to USD$8.30. Subsequent premarket fluctuations have seen the stock surge by 20.24%, bringing it up to USD$9.98.

    Changes in MDIA Leadership

    The latest news from the company came on June 11th 2021, when the company announced the appointing of a new Chief Executive Officer, effective as of July 1st 2021. Mr. Lindsay has a wealth of experience, spanning two decades of leadership across the media, television and advertising spaces. He will be responsible for deciding MDIA’s overall strategic vision, aiming to expand its radio and outdoor divisions.

    Volume of Shares Traded

    The company’s stock price started climbing on July 12th, 2021 after an extended period of relative stability. The massive surge of volume of shares traded went from a few dozen thousand up to a peak of almost 10 million over the course of a day. With no reason to assume developments that have not yet reached the public, this movement happened too rapidly for the stock to have gained momentum among investors, thereby resulting in a snowball effect.

    Contextualizing MDIA’s Volatility

    Rather, in the absence of any media coverage of significant developments or changes in fundamentals, it is highly likely that MDIA has found itself to be the latest target of the meme stock phenomenon that has been spreading like wildfire across the stock markets. The pumping and inflating of the equity value of underperforming companies go as far as to see companies heading towards bankruptcy being brought back from the brink of closure.

    Meme Stock Phenomenon

    A common denominator among the stocks being targeted by the meme stock movement seems to be high short interest, signaling institutional investors’ confidence in the company’s stock price falling. Accordingly, retail investors coordinate to execute a collaborative short squeeze, seeking to capitalize on the confidence of the institutional investors. As a result, some of the biggest names in finance have seen losses in the billions, with some going as far as to declare bankruptcy. Given the largely random driving forces behind the movement, these gains in stock prices are rife with inherent volatility and risk.

    Future Outlook for WORX

    Nevertheless, armed with the fortuitous surge in equity value, MDIA is poised to capitalize on the opportunities afforded to it from the expanded scope of exposure it has received as a result of its recent rollercoaster ride. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate more organic growth over the long term.

  • INmune Bio, Inc. (INMB) Stock on the Rise Following First Patient Treatment in INKmune Phase 1 Clinical Trial

    INmune Bio, Inc. (INMB) stock prices were up by 12.67% as of the market closing on July 13th, 2021, bringing the price per share up to USD$26.68. Subsequent premarket fluctuations saw the stock rise by 7.01%, bringing it up to USD$28.55.

    INKmune

    July 12th, 2021 saw the company announce the use of INKmune, its Natural Killer (NK) cell priming platform, had been used to treat the first patient in Phase 1 clinical trial. The treatment is being explored as a viable option for patients with high-risk myelodysplastic syndrome. MDS is a hematopoietic stem cell disorder that is indicated by functionally defective NK cells, with the level of dysfunction being predictive of overall survival. Roughly 33% of MDS cases develop into acute myelogenous leukemia (AML). With no known cure for MDS, existing therapies like chemotherapy and bone marrow/stem cell transplantation have varying degrees of success.

    Research Conducted

    With levels of NK function in MDS patients being predictive of overall survival, 15 years of lab research into potential patient treatment has raised hopes. The enhancement of low-level NK activity in patients with poor prognosis to the level of those with better overall survival, thereby altering the course of the disease, could be highly commercially promising.

    Scope of Research

    Lab work has shown INKmune binding to multiple NK receptors and initiates the activation of more than 3000 genes associated with function, trafficking, proliferation, and overall survival. With not a single cytokine available that has such a myriad of physiological effects, INKmune is being referred to as a psuedokine.

    Expanded Opportunities

    The treatment of the first patient in the trial serves as a major milestone, with the company being the first to study the INKmune platform in a formal clinical setting. With it being widely known that dysfunctional NK cells in cancer patients are not effective at eradicating residual disease after chemotherapy, leading to relapse and poor outcomes. The company has shown that with the delivery of tumor-specific activating signals to NK cells with INKmune, autologous tumor killing can be initiated.

    Future Outlook for INMB

    Armed with the significant milestone of having treated the first patient in the study, INMB is poised to capitalize on the opportunities afforded to it as a result. The company is keen to push for the accelerated development and eventual commercialization and proliferation of the treatment. Current and potential investors are hopefully that management will continue to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.