On March 04, Datasea Inc. (DTSS) stock fell further down after hours to trade at a value of $2.50 per share. The stock seems to be losing under profit booking as it had been bullish for more than a week.
In the regular trading session on Friday, the stock suffered a loss of 2.59% at a below-average volume. The stock traded between a high of $2.75 and a low of $2.60 during the session. DTSS closed the session at a price of $2.63 as 224.97K shares exchanged hands. Following this, the stock plunged by a further 4.94% or $0.13 in the after hours.
Founded in 2014, the smart security systems provider, Datasea Inc. is headquartered in China. Currently, its 24.24 million outstanding shares trade at a market capitalization of $63.76 million.
DTSS stock Movement and Reasons
As the Russia-Ukraine conflict escalated on February 24 and the stock market saw a downtrend, most cybersecurity stocks went up. The reason for the upsurge in cybersecurity stocks is cyber-attacks being an active part of the conflict. Thus, being a security systems provider DTSS also entered a bullish trend on February 24. The stock had been gaining since then but with occasional small profit booking events. Therefore, after gaining continuously for nearly two weeks, the stock was bound for corrections and profit booking. Subsequently, the stock fell prey to corrections and profit booking on Friday.
Q2 Fiscal 2022 Results
On February 11, the company declared its financial results for the fiscal Q2 2022 which ended on December 31, 2021.
In the quarter, DTSS reported revenue of $8,979,479 against that of $126,184 for the year-ago period. This marks a humungous increase of 7016% YOY.
Moreover, the company had a gross profit of $246,299 in fiscal Q2 2022, against $86,070 in the prior-year quarter. This marks an increase of 186% YOY.
Additionally, the research and development expenses increased by 221% YOY to $432,355 in fiscal Q2 2022. This compares to R&D expenses of $134,509 in fiscal Q2 of 2021.
DTSS’ Partnerships for Acoustic Intelligence
On January 18, the company announced its partnerships with leading Chinese research institutes for unlocking the full potential of acoustic intelligence in commercial applications.
Furthermore, the company also reported China’s inaugural white paper titled “Industry development and Technology Application of Acoustic Intelligence in china”. Co-authored with the Institute of Cloud Computing and Big Data and China Academy of Information and Communications Technology, the paper details facts and analyses of acoustic-intelligence technology.
