ZW Data Action Technologies (CNET) AI Stock Analysis

• Market Cap: $4.05M
• Dividend Yield: N/A
• Average Volume (3M): 326.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 0.71
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: -1.93
• 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 ▼(-18.70% Downside)

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

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	706.00K	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: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.23 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.54, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 46.88 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	$4.05M	-1.42	-50.26%	―	-66.59%	67.63%
LDWY	39 Underperform	$6.24M	-2.45	―	―	95.23%	34.97%
DRCT	39 Underperform	―	-0.03	―	―	-62.46%	-12.90%
TNMG	38 Underperform	$6.26M	-0.73	-164.27%	―	4.59%	-920.35%

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.

ZW Data Action Technologies Acquires Stake in Modest Attack

On October 28, 2025, ZW Data Action Technologies Inc., through its subsidiary CNET Technology Limited, agreed to purchase a 9.9% equity interest in Modest Attack Limited from Fun Star Group INC. for $625,000 in cash and 150,000 shares of common stock. This acquisition is expected to enhance ZW Data Action Technologies’ strategic positioning, with the transaction subject to customary closing conditions.