- Meten EdtechX Education Group Ltd. (NASDAQ: METX) announced the pricing of the underwritten public offering of ordinary shares for US$0.30 per share on Sep 1, 2021.
- Meten EdtechX stock was down 52% at 8:38 am ET in the premarket after galloping over 36% at the close the previous day.
- Baidu Inc has a P/E ratio of 8.62. The stock was up 1.60% at 8:39 am ET.
Stocks of Chinese companies Meten EdtechX Education Group Ltd. (NASDAQ: METX) and Baidu, Inc. (NASDAQ: BIDU) were trending on Wall Street Thursday after wavering over the past few weeks amid growing regulatory pressures on some of the China-based US-listed firms.
The METX) was trading at US$0.4407, down 52.07%, at 8:38 am ET while BIDU stock was up 1.60% to US$167.82 at 8:39 am ET from the previous close on Thursday.
Meten EdtechX Education Group Ltd.
The Shenzhen-based EdtechX provides English language and skills training classes through its digital platform and learning centers. The company has a market cap of US$95.9 million.
The stock saw a sudden jump in trading volume, from 1,991,993 in the previous session to 128,414,300 on Wednesday. The robust trading volume comes after the company announced the pricing of its underwritten public offering of its ordinary shares and pre-funded warrants.
It offered 200,000,000 ordinary shares for US$0.30 per share. The pre-funded warrants were offered at the same price. The gross proceeds are likely to be around US$60 million.
Source – pixabay
EdtechX also announced on Wednesday to enter the blockchain and cryptocurrency business. It is currently exploring the possibilities in the crypto market. The company’s revenue in Q2 of 2021, was US$31.7 million, and the adjusted net loss was US$11.7 million.
The company had 102 learning centers at the end of the June quarter of 2021.
The stock fell over 52% in the premarket on Wednesday after skyrocketing by over 36% at the market close on Sep 1. The stock’s 52-week highest and lowest prices were US$8.94 and US$0.46, respectively.
Baidu is a technology company headquartered in Beijing. It runs a popular search engine. There was no visible reason for the massive investors’ interest in the stock on Thursday.
The company earned revenue of US$4.86 billion in Q2 ended June 30, 2021, registering a 20% growth year-over-year. The net loss was US$90 million or US$0.26 per diluted in the quarter.
The company has a market cap of 57.5 billion, a P/E ratio of 8.62, and a forward P/E one year of 27.95. Baidu’s 52-week highest and lowest stock prices were US$354.82 and US$116.41, respectively. The stock is currently trading close to its lowest price.
The stock had closed at US$165.18 on Sep 1.
Chinese companies are increasingly facing stricter regulations from the government. It makes Chinese stocks vulnerable to uncertainties and volatile. However, any interest in stocks should be evaluated further before investing.