Meten Holding Group Ltd. (METX) continued on a slow bullish path with a slight gain of 0.46% pre-market, reaching $0.6869 as compared to a gain of 5.10% at the previous close of $0.68 but the whole scenario changed after it announced registered direct offering early morning on November 10. After Meten Holding registered a direct offering of ordinary shares at the market with a purchase price of $0.60 per ordinary share, the stock price took a sudden bearish turn. The stock went down 18.43% reaching $0.56 pre-market.
Following a strategic partnership with AGM Group Holdings Inc. for the development of METX’s block chain and cryptocurrency mining business on October 28, Meten Holding Group Ltd. (METX), the Chinese Omni channel ELT (English Language Training) service provider’s stock was on an uptrend.
Moreover, Chinese education stocks including METX, were on an uptrend following reports on China allowing them to continue their work. Formerly, due to restrictions imposed by the Chinese government on the stocks, they had been on a downtrend.
The uptrend soon took a U-turn for METX following the new developments early morning.
Meten Holding Group Ltd. (METX) is set to announce its third-quarter fiscal year 2021, financial results on Monday, November 22, 2021.
METX Earnings Report Q2
Earlier in August, it was revealed that the revenues for the second quarter of 2021 saw an increase of 8.2% from the second quarter of 2020, resulting in a revenue of $31.7 million. The net loss stood at $12.4 million while the loss from operations was $12.0 million in the second quarter of 2021.
Alan Peng, Chief Executive Officer of METX commented that the team is focused on positively navigating through the hurdles caused by the Covid-19 pandemic on the business, and adjusting their strategies plus objectives to meet the changing needs of the market.
How does the Future look?
Covid-19 pandemic brought about a consequential shift in the educational system, replacing traditional classroom-based learning with an online mode of learning. While it is a debatable change based on access to the internet and related facilities, the future prospects for growth in the market are huge as giants like Tesla work on making the internet more readily and easily accessible. The global education/training market is expected to grow at a rate of 9% annually.
While the market is growing, METX’s weak fundamentals may cause its gains to dwindle.
