Shares of the Borqs Technologies, Inc. (BRQS) stock were continuing the downtrend in the pre-market trading session today on July 27, 2021. BRQS stock price saw a downtrend of 3.50% to drop at $0.70 a share at the time of this writing. The stock went down by 10.14% at the previous closing. Let’s try to figure out the reason behind this bearish sentiment.
What’s Happening?
Borqs Technologies, Inc is a technology-related services provider in the People’s Republic of China. There is no press release or any BRQS related news to justify the bearish sentiment. Moreover, no analyst downgrades or shrank targeted per share price of the BRQS stock have been in the recent news. This spreads curiosity among investors who are eager to know the culprit behind the falling BRQS stock price. It is better to look at some previous events of the Borqs Technologies.
BRQS stock Joint Venture with Chinese Government:
On July 22, 2021, BRQS stock did announce related to its joint venture with Huzhou, China government. In connection with its joint venture, the Borqs technology received several bids from the real estate developers in order to build a 1.9 million sq.ft 5G industrial park in Huzhou, China for US$110 million. 1.7 million sq.ft. which Huzhou South Taihu New Area government has granted to Borqs stock is included in the $110 million value. This industrial park will comprise of research and office complex, convention centers, manufacturing facilities, and hotels.
The Borqs JV entity has the responsibility to manage the whole development project. Moreover, it is expecting 20% to 30% ownership of the facilities under this project. The bidding, as well as the selection process, is possible to conclude in the third quarter of 2021.
BRQS stock Contract with SkyCentrics:
About a month ago, BRQS stock did announce the initiation of delivery of cellular CTA-2045 EcoPort products to SkyCentrics. This initiation was the result of a previously announced partnership contract between Borqs Technologies and SkyCentrics in October 2020. SkyCentrics is the leading machine learning and artificial intelligence solution provider for optimization in various areas.
Wrap Up:
BRQS stock is passing through hard times as far as market sentiment is concerned. The penny stock has a market cap of 89.046 million and a 10,639,791 average volume.
