American Virtual Cloud Technologies, Inc. (AVCT) stock rebounded in the pre-market on Tuesday after it succumbed to corrections in regular trading. The reason behind the recovery was the announcement of Kandy and Etisalat’s record growth in the Middle East.
During regular trading, the stock fluctuated between a high of 2.64 and a low of 2.31 at 35.01 million shares. The stock closed the session with a loss of 7.00% at $2.39 on Tuesday. Following the news, AVCT recovered in the pre-market, gaining 7.95% at $2.58.
AVCT and its Movement
The IT solutions provider, American Virtual Cloud Technologies, Inc. was founded in 2016. Currently, its 71.35 million outstanding shares trade at a market capitalization of $203.53 million.
During the regular session, AVCT saw a downtrend due to corrections, shedding its previous day’s gains. Previously, the company had announced the expansion of its Kandy Communications business to 40 countries on December 15. As per the announcement, Kandy’s PSTN replacement service is now available in 40 countries including Brazil and China. This news had caused an uproar in the stock which ultimately resulted in its fall on Tuesday. Further, Tuesday’s announcement put AVCT back on a bullish path in the after-hours session.
Moreover, the stock has lost 4.40% in the past five days, mostly due to corrections after gains on Kandy’s expansion news. Furthermore, AVCT has added a value of 62.59% in the past month while losing 66.81% year to date.
Kandy and Etisalat
As per Tuesday’s announcement, AVCT’s Kandy reported record growth of its partnership with Etisalat. The Etisalat CloudTalk and Business Edge are powered by Kandy’s Unified Communications and Collaboration platform. Over 50,000 end users are enabled to have a safe, secure and multi-functional communication and collaboration platform through it. Moreover, the Etisalat CloudTalk Meeting also provides services to mobile workforces. In addition, Etisalat and Kandy are also working on cutting-edge communications solutions for their enterprise customers.
Etisalat is a leading telecom group in emerging markets with high credit ratings and performance. The company is based in Abu Dhabi, UAE. Furthermore, the company had consolidated net revenue of AED 51.7 billion with AED 9.0 billion net profit in 2020. Moreover, Etisalat Group’s services are provided in 16 countries across the Middle East, Asia, and Africa.
