ZW Data Action Technologies (CNET) AI Stock Analysis

• Market Cap: $2.81M
• Dividend Yield: N/A
• Average Volume (3M): 326.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -66.59%
• EPS Growth: 67.63%
• Country: US
• Employees: 25
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 3,268,469
• 10 Day Avg. Volume: 14,272
• 30 Day Avg. Volume: 326,582
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -1.77
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: -0.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-20.00% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is held down primarily by weak financial performance—declining revenue, thin gross margins, ongoing net losses, and negative operating/free cash flow—despite low leverage. Technicals also reflect a clear downtrend (below major moving averages with negative MACD). Valuation provides limited support due to a negative P/E and no dividend data, while the recent minority-stake acquisition is a modest positive but not yet enough to offset fundamental pressures.

Positive Factors

Innovative Technology Platforms

The company's use of innovative technology platforms positions it to effectively deliver targeted marketing solutions, enhancing client engagement and potentially driving long-term growth in the digital marketing sector.

Diverse Revenue Streams

A multi-faceted business model with diverse revenue streams from digital marketing, e-commerce, and advertising provides resilience against market fluctuations, supporting long-term business sustainability.

Partnerships and Collaborations

Strategic partnerships and collaborations enhance service offerings and create additional revenue opportunities, strengthening competitive positioning and fostering long-term growth potential.

Negative Factors

Declining Revenue

Significant revenue decline over recent years indicates challenges in market competitiveness and demand, potentially impacting the company's ability to sustain operations and invest in growth.

Negative Equity

Negative equity reflects financial instability and solvency risks, limiting the company's ability to raise capital and invest in strategic initiatives, which could hinder long-term growth.

Cash Flow Issues

Negative cash flow indicates inadequate cash generation to cover operational needs, posing challenges for sustaining operations and funding future growth, impacting long-term financial health.

ZW Data Action Technologies Business Overview & Revenue Model

Company Description

ZW Data Action Technologies Inc., through its subsidiaries, provides omni-channel advertising, precision marketing, and data analysis management systems in the People's Republic of China. It offers Internet advertising, precision marketing, and related data services through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. The company also develops and operates blockchain technology-based products and services. In addition, it provides other e-commerce online to offline advertising and marketing and related value-added technical services, as well as strategic corporation management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. ZW Data Action Technologies Inc. was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

ZW Data Action Technologies generates revenue through a multi-faceted business model that includes digital marketing services, e-commerce solutions, and online advertising. The company earns money by offering customized marketing strategies and solutions that utilize data analytics to optimize clients' digital presence and improve their return on investment. Additionally, ZW Data Action Technologies partners with various platforms and providers to enhance its service offerings, driving additional revenue through these collaborations. The company's e-commerce operations also contribute to its earnings by facilitating transactions and offering related services to businesses seeking to expand their online sales channels.

ZW Data Action Technologies Financial Statement Overview

Summary

Weak operating fundamentals dominate: TTM revenue fell ~19.8%, gross margin is very thin (~4.8%), and profitability remains deeply negative (TTM net margin ~-33%). The main offset is a conservatively financed balance sheet with very low leverage (TTM debt-to-equity ~0.004), but returns are still sharply negative (TTM ROE ~-60%) and cash generation is negative (TTM OCF ~-$1.6M; FCF ~-$1.7M).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined ~19.8% versus the prior period, extending a multi-year pattern of volatility and contraction (2021: $47.3M to 2024: $15.4M to TTM: $6.2M). Profitability remains weak: gross margin is very thin in TTM (~4.8%) and net results are deeply negative (TTM net margin ~-33%), although losses improved versus 2022 (net margin ~-37%). Overall, the business is still operating below break-even with limited gross profit to absorb operating costs.

Balance Sheet

Leverage is very low in the most recent periods, with TTM debt-to-equity near zero (~0.004) and modest debt levels in 2023–2024, reducing financial strain and refinancing risk. However, returns to shareholders are sharply negative (TTM return on equity ~-60%), reflecting ongoing losses and pressure on equity over time. The balance sheet looks conservatively financed, but profitability is not currently supporting a healthy return profile.

Cash Flow

Cash generation is a clear weakness: TTM operating cash flow is negative (~-$1.6M) and free cash flow is also negative (~-$1.7M), indicating the company is consuming cash to run the business. There is improvement from 2021–2022 levels (operating and free cash outflows were larger), and TTM free cash flow loss narrowed versus 2024, but cash flow remains structurally challenged and not yet self-funding.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.17M	15.44M	30.59M	26.23M	47.33M	38.41M
Gross Profit	296.00K	446.00K	-436.00K	-194.00K	98.00K	632.00K
EBITDA	-1.49M	-2.80M	-3.13M	-6.44M	-12.75M	-4.83M
Net Income	-2.06M	-3.76M	-5.97M	-9.79M	-2.75M	-5.22M
Balance Sheet
Total Assets	9.65M	9.69M	11.23M	19.66M	32.63M	20.67M
Cash, Cash Equivalents and Short-Term Investments	1.76M	812.00K	817.00K	4.39M	7.17M	4.30M
Total Debt	184.00K	122.00K	247.00K	2.11M	2.40M	387.00K
Total Liabilities	6.24M	5.97M	4.98M	7.36M	10.87M	8.19M
Stockholders Equity	3.35M	3.66M	6.25M	12.30M	21.77M	12.54M
Cash Flow
Free Cash Flow	-1.68M	-2.06M	-2.09M	-3.15M	-10.33M	-1.68M
Operating Cash Flow	-1.62M	-2.06M	-2.01M	-3.15M	-8.84M	326.00K
Investing Cash Flow	708.71K	895.00K	-1.54M	552.00K	-5.47M	-3.47M
Financing Cash Flow	1.56M	1.15M	0.00	-40.00K	17.11M	5.82M

ZW Data Action Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNET, the sentiment is Negative. The current price of 1.25 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 1.18, and below the 200-day MA of 1.54, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNET.

ZW Data Action Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNET	44 Neutral	$2.81M	-0.97	-50.26%	―	-66.59%	67.63%
DRCT	43 Neutral	$3.22M	-0.02	―	―	-62.46%	-12.90%
TNMG	41 Neutral	$7.51M	-0.05	-164.27%	―	4.59%	-920.22%

ZW Data Action Technologies Corporate Events

ZW Data Action Technologies Holds Annual Stockholders Meeting

On December 1, 2025, ZW Data Action Technologies held its Annual Meeting of stockholders, where several key decisions were made. The stockholders elected seven directors to the Board, ratified the appointment of ARK Pro CPA & Co. as independent accountants for fiscal 2025, approved the 2025 Omnibus Equity Incentive Plan, and approved executive compensation. These decisions are pivotal for the company’s governance and operational strategies moving forward.