Datasea Inc. (DTSS), a company that provides smart security solutions in the People’s Republic of China, has declined 5.26% in aftermarket trading session. As a result, DTSS stock is trading at $1.62 at the time of the writing. The decline could be attributed to short selling by certain investors. On Friday, DTSS closed the day at $1.71 after increasing 1.79% during regular trading hours. Ler’s discuss recent developments related to DTSS stock.
Procurement Contract with Hangzhou Shuhai Zhangxun
On 18th November, DTSS announced that its wholly-owned subsidiary, by the name of Hangzhou Shuhai Zhangxun Information Technology Co., Ltd. had entered into a $378k procurement contract with the China Mobile Group Guangdong Co., Ltd. for the cloud transformation services. The company would provide hardware and software to China Mobile after the contract has taken place. The cloud services would include cloud computing, cloud database and cloud network offering.
DTSS Presentation
On 15th November, DTSS announced that it would give a presentation at the Q4 virtual investor summit. The management team of the company was to provide an overall view of the company business during the presentation. The presentation was also to include an update on the critical strategic and operational initiatives undertaken by the company. Zhixin Liu, CEO of Datasea commented on the development that the company s fusing its business goals into its each business decision, which in turn focuses on the long-term establishment of business advantages.
Procurement Contract with Jiangxi Zhouwang
On 18th October, DTSS announced that its wholly-owned subsidiary, namely Shuhai Zhangxun Information Technology Co., Ltd., had signed a $4.67 million procurement contract for the short message and 5G multimedia message services with Jiangxi Zhouwang Network Technology Co., Ltd. As a result of the contract, DTSS subsidiary Shuhai Zhangxun was to provide help to Jiangxi Zhouwang to reach its clients as well as provide the value-added telecommunication messaging services. The term of the contract is placed at one year.
Future Outlook for DTSS
The recent few months have proven to be a hard time for DTSS stock as it has continually faced a declining trend. During the last six months, DTSS stock has declined more than 30%. However, analysts are hopeful that the business expansion strategies adopted by the company could serve as a stimulus for the growth of DTSS stock in the future.