CooTek (Cayman) Inc. (CTK) stock went up by 38.35% in the after-hours, following the news of the company’s Metaverse plans. According to this, the CooTek Metaverse will merge Novels and Games to create a new entertainment landscape.

During regular trading, the CTK stock was down by 9.44%, closing at $0.5421 with 1.99 million shares exchanging. Soon after the announcement, the stock bounced back to reach $0.7500 with 763.79 thousand shares in the after hours.

More about CTK

The mobile internet company CooTek (Cayman) Inc. (CTK) has a current market capitalization of $40.23 million. Moreover, the company has 62.28 million shares outstanding in the market.

In the previous five trading sessions, the stock has lost 27.49% of its value. While it went down by 49.34% in the past month, CTK has lost 80.43% year to date.

The CooTek Metaverse

On December 06, the CSO, Zhaowen Zhou of CTK, announced the company’s plans for its metaverse at the 2021 Xueqiu Investor Conference. According to the announcement, the company plans to combine online literature and games to construct and a new ecosystem of entertainment metaverse.

The company has two core segments, online literature, and games, which according to Mr. Zhou have a natural connection. As the virtual worlds and stories of novels can be further visualized through games. Hence, CTK plans to create a highly immersive metaverse where readers would be able to interact with the novel’s characters through games.

In addition, the virtual items in the novel-based games would be able to be turned into NFTs.

CTK’s New Business Strategy

Previously, the company had announced its new business strategy focusing on metaverse and NFT (Non-Fungible Token) on December 02. According to this, CTK has been working on the development of metaverse-related immersive and interactive digital content and games. Moreover, the announcement also shares the company’s focus on the NFT-based digital content copyright systems.

Financial Highlights

On September 08, CTK announced its unaudited second-quarter financial results for 2021. As per the second quarter of 2021, the company had net revenues of $83.2 million, against $126.4 million in Q2 2020. This 34% decrease was caused by portfolio products’ restructuring.

Furthermore, CTK had a non-GAAP adjusted net income of $1.1 million in the second quarter of 2020. This compares to $4.5 million in the year-ago quarter.

The company is set to announce its unaudited financial results for the third quarter of 2021, on December 08, 2021.