Chinanet Online Holdings Inc (NASDAQ: CNET) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company released its unaudited financial results from the second quarter, with the results proving to be positive. Of course, this excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The results;
- what we’re seeing from CNET as a result; and
- what we’ll be watching for with regard to the stock ahead.
CNET Releases Unaudited Financial Results
As mentioned above, ChinaNet-Online Holdings is having an incredibly strong start to the trading session this morning after announcing its unaudited financial results for the second quarter. Here’s what we saw from the report:
- Revenue – Revenues saw strong gains, increasing by $114.5% to land at $22.5 million during the quarter. Also, revenue from search engine marketing and data services increased by 142.1% to 19.4 million.
- Losses – During the quarter, CNET generated a net loss attributable to shareholders in the amount of $9.5 million.
In a statement, Mr. Handong Cheng, Chairman, President and CEO at CNET, had the following to offer:
We continued to grow our existing search engine marketing and data service business while developing a new growth engine in blockchain. During the quarter, we initially launched the beta, and later the official version of BO!News, the first blockchain-powered mobile application to improve the efficiency and transparency of marketing and advertising activities. We also formed Business Opportunity Social Ecosystem (BOSE), a blockchain-based transaction system to improve distribution fairness, enhance transaction credibility, and increase monetization opportunities for the marketing and advertising business community. Going forward, we will remain committed to introducing and integrating additional blockchain applications into our ecosystem, pave our path back to profitable growth, and solidify our leadership position in China’s rapidly expanding blockchain industry.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of ChinaNet Online Holdings, the news proved to be overwhelmingly positive. After all, more than 100% growth in revenue is just about always a good thing. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top early on. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:06), CNET is trading at $2.66 per share after a gain of $0.75 per share or 38.27% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CNET. In particular, we’re interested in following the story surrounding the company’s continued work to expand revenues and its online platform. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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