The stock of Meten Holding Group Ltd. (METX) gained value in the Pre-market today. The stock was valued at $0.3106 gaining 9.75% from the previously closed value. At the end of the last trading session, the stock closed at $0.26. The average volume of the stock traded in the trading session was around 170.70 million.
Reason for the METX stock gain:
The reason for the METX stock gain is not related to a recent development by the company. But 2 weeks ago the company announced their financial results for the 3rd quarter of 2021. The company announced that due to the covid-19 pandemic situation they moving forward to close their offline educational institutes except for 1 or 2 centers. The fixed cost of the company will be greatly reduced by it. Due to this, the company is expected to increase its profitability in the next quarter.
They also said that being an educational giant in the industry they are looking forward to focusing on Metaverse. They are looking forward to finding out new opportunities that are related to the Metaverse. The company said that they are moving forward to use their offline centers as a career planning and building professional skills of the individuals to train them with the required set of skills related to the Metaverse.
The Company said that it will also explore the emerging industry of blockchain and cryptocurrency and is trying to explore overseas opportunities. During the last month, they have formed a strategic and business partnership with AGM Group Holdings. The company is seeking opportunities in mine construction, mining, and manufacturing, and mining machines sales. They are looking forward to joining a cryptocurrency fund as a limited partner to further expand their business vision and seek opportunities to invest in companies with extraordinary potentials.
Effect on the stock rise:
The investors are seen to trust the company in their vision and were seen to be interested in buying its stock. Due to this, the stock of the company increased almost 10% in the Pre-market. The company is moving to establish its new business strategies to generate more income streams and diversify its investments to increase profitability and expand its business. This could benefit the investors in the future in terms of capital gain.
Conclusion:
The rise of the new coronavirus variant is a threat for every industry. Any positive or negative development in the situation in terms of the variant spreading could affect the stock value and market as a whole.
