Shares of the ECMOHO Limited (MOHO) stock were falling in today’s intraday trading on July 19, 2021, without any specific reason. The MOHO stock declined 7.38% to drop at $1.38 a share as of this writing. ECMOHO Limited is an investment holding company that provides integrated solutions to the health(non-medical) and wellness market. Let’s deep dive to explore more of it.
There is no MOHO stock-specific news in today’s date to justify the bearish sentiment. No analysts’ downgrades or shrank targeted per share price of the MOHO stock have been in the news to support today’s decline. It means MOHO stock is going down without any particular reason which is the general convention for most of the stocks as rises and falls are the norms of the stock market. So, what do you need to know now about this position? Let’s discuss some recent events of MOHO stock.
Strategic Cooperation Agreement:
On July 16, 2021, ECMOHO stock signed a strategic cooperation agreement with Chong Kundang Group, a pharmaceutical company in South Korea. The agreement was intended to provide the marketing as well as multichannel sales for retail solutions for Chong Kundang’s health products in China. Furthermore, the agreement would help CKD in providing high-quality diversified health and wellness products to Chinese consumers.
ECMOHO 618 Analysis:
ECMOHO stock held sales event ECMOHO 618 on June 18, 2021, that was primarily focused on increasing trends and the concept of “comprehensive health” in products related to consumers’ health.MOHO stock collaborated with top domestic and foreign brands during the sales event in order to introduce high-quality health care products. Store traffic and sales had been increased via implementing multiple efficient strategies by the MOHO stock. The consumers and sales data had been gathered in order to reach a more targeted audience for high sales conversions of demanded products. Many reputed domestic and foreign brands had been empowered through ECMOHO 618 sales event in which Puritan’s Pride, Harbin Pharmaceutical, Wyeth, and Nestlé were also included.
Financial View of the MOHO stock:
According to first-quarter 2021 financial results, product sales revenue decreased to US$26.4 million from US$60.7 million in the same tenure of 2020. On the other hand, services revenue surged to US$679,648 in the recently reported quarter from US$440,147 in the first quarter of 2020. The gross margin of product sales was 18% and 61% for the services as well.
MOHO stock is facing a bearish sentiment today despite the absence of any reason. Consumers are now more concerted to their health issues and health-related consumption after the rise of the Covid-19 pandemic. As MOHO stock is fully dedicated to fulfilling the needs of its consumers but first quarter of 2021 financial results were down as compared to the same quarter of the previous year. Hence investors are encouraged to do deep research before making any decision.