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ZW Data Action Technologies (CNET)
NASDAQ:CNET

ZW Data Action Technologies (CNET) AI Stock Analysis

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ZW Data Action Technologies

(NASDAQ:CNET)

Rating:38Underperform
Price Target:
ZW Data Action Technologies is struggling with severe financial instability, marked by declining revenues and consistent losses. The technical analysis suggests a lack of upward momentum, while valuation metrics highlight the risks due to negative earnings. Without clear signs of improvement in financial performance or positive corporate developments, the stock remains highly risky.

ZW Data Action Technologies (CNET) vs. SPDR S&P 500 ETF (SPY)

ZW Data Action Technologies Business Overview & Revenue Model

Company DescriptionZW 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 MoneyZW 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
ZW Data Action Technologies faces significant financial challenges, with declining revenues, persistent losses, and negative equity. The company's financial stability is at risk due to shrinking revenues and poor cash flow management. Without strong corrective measures, the company's financial health remains vulnerable.
Income Statement
30
Negative
ZW Data Action Technologies has experienced declining revenues from $58.08M in 2019 to $15.44M in 2024, indicating a significant revenue contraction. Gross profit margins were negative in 2023 and 2022, highlighting operational inefficiencies. Negative EBIT and EBITDA margins reflect ongoing losses, with a net profit margin of -24.4% in 2024, indicating significant challenges in achieving profitability.
Balance Sheet
25
Negative
The company has a negative stockholders' equity of $-2.33M in 2024, indicating financial instability. With no debt in 2024, the debt-to-equity ratio cannot be calculated, but negative equity is a concern. The equity ratio is negative due to high liabilities relative to assets, signaling weak financial health and potential solvency risks.
Cash Flow
35
Negative
Operating cash flow was negative in recent years, with a free cash flow of $-2.06M in 2024, showing cash drain issues. The operating cash flow to net income ratio is negative, reflecting inadequate cash generation relative to net income losses. Despite this, investing cash flow improved in 2024, but overall cash flow health remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.56M15.44M30.59M26.23M47.33M38.41M
Gross Profit534.00K446.00K-436.00K-194.00K98.00K632.00K
EBITDA-2.92M-2.80M-3.13M-6.78M-12.96M-4.83M
Net Income-3.44M-3.76M-5.97M-9.79M-2.69M-5.22M
Balance Sheet
Total Assets9.54M9.69M11.23M19.66M32.63M20.67M
Cash, Cash Equivalents and Short-Term Investments807.00K812.00K817.00K4.39M7.17M4.30M
Total Debt206.00K122.00K247.00K2.11M2.40M387.00K
Total Liabilities6.37M5.97M4.98M7.36M10.87M8.19M
Stockholders Equity3.11M3.66M6.25M12.30M21.77M12.54M
Cash Flow
Free Cash Flow-3.33M-2.06M-2.09M-3.19M-10.33M-1.68M
Operating Cash Flow-2.69M-2.06M-2.01M-3.19M-8.84M326.00K
Investing Cash Flow1.37M895.00K-1.54M552.00K-5.47M-3.47M
Financing Cash Flow1.65M1.15M0.00-40.00K17.11M5.82M

ZW Data Action Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.49
Price Trends
50DMA
1.44
Positive
100DMA
1.49
Positive
200DMA
1.70
Negative
Market Momentum
MACD
0.02
Negative
RSI
54.49
Neutral
STOCH
58.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNET, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.44, and below the 200-day MA of 1.70, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNET.

ZW Data Action Technologies Risk Analysis

ZW Data Action Technologies disclosed 52 risk factors in its most recent earnings report. ZW Data Action Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ZW Data Action Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CHCHR
74
Outperform
$18.21M0.628.88%-3.37%-23.21%
61
Neutral
$40.40B-0.91-12.15%3.89%2.03%-69.70%
47
Neutral
$11.82M-320.07%-69.54%-19665.56%
40
Underperform
$8.83M-36.44%97.63%-945.35%
38
Underperform
$3.31M-80.78%-49.52%-86.35%
$3.99M
31
Underperform
$52.04M-157.27%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNET
ZW Data Action Technologies
1.49
-1.63
-52.24%
LDWY
Lendway
5.00
0.55
12.36%
CHR
Cheer Holding
1.58
-1.02
-39.23%
BAOS
Baosheng Media Group Holdings
2.60
0.72
38.30%
DRCT
Direct Digital Holdings
0.61
-3.26
-84.24%
VSME
VS Media Holdings Limited Class A
1.06
-0.56
-34.57%

ZW Data Action Technologies Corporate Events

Executive/Board Changes
ZW Data Action Technologies Announces Board Changes
Neutral
Dec 27, 2024

ZW Data Action Technologies Inc. announced the resignation of Kevin Choi as an independent director, with no disagreement cited between him and the company. Justin Tam, with extensive experience in business development and healthcare technology, has been appointed as the new independent director, meeting qualifications according to Nasdaq Marketplace Rules.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025