Stocks TelegraphStocks Telegraph
Stock Ideas

Qutoutiao Inc. (QTT) stock goes down today: Why is it so?

By Muhammad Ali
Published On December 2, 2021 2:44 PM UTC
Qutoutiao Inc. (QTT) stock goes down today: Why is it so?

Shares of the Qutoutiao Inc. (QTT) stock were declining in the current market after it announced its plan to change ADS Ratio Change. QTT stock price saw a downtrend of 16.58% to drop at $0.5006 a share at the time of this writing. The stock was green in the previous trade and went up by 0.02% at closing. Let’s dig in to understand more about this stock.

What’s Happening?

QTT stock is planning to change the ratio of its American Depositary Shares (“ADSs”) to its Class A ordinary shares. The par value is US$0.0001 per share. The company will change the ADS Ratio of four ADSs to one. Class A ordinary share to a new ADS Ratio of two ADSs to five Class A ordinary shares. This change will be effective on or about December 10, 2021.

The ADS change ratio will impose the same effect as a one-for-ten reverse ADS split. Every ADS holder will surrender on the effective date of the change in ADS ratio and exchange existing every ten ADSs then held for one new ADS. There is no chance of issuance of fractional new ADSs however depository back will sell an aggregate of fractional entitlements to new ADSs.

Financial View of QTT stock:

  • According to second-quarter 2021 financial results, QTT stock generated RMB1,202.0 million in net revenues. This represents a 16.6% decrease as compared to 1,441.0 million in the same quarter of last year.
  • The cost of revenues of the QTT stock decreased by 18.1% from Q2,2020 to drop at RMB327.7million in Q2,2021.
  • The company recorded RMB874.2 million in gross profit in the second quarter of 2021. The gross profit decreased by 16.0% from the same tenure of the previous year.
  • QTT stock suffered a net loss of MB209.5 million in the second quarter of 2021. In the same quarter of last year, the net loss of the company was RMB222.1 million. In the first quarter of 2021, QTT stock suffered an RMB149.0 million net loss.
  • Net loss margin in the second quarter was 17.4% as compared to 15.4% in the same period of the previous year.
  • The stock spent RMB136.2 million in research and development expenses in the second quarter of 2021.
  • By the end of the third quarter, QTT stock had US$158.3 million in cash, cash equivalents, and short-term investments.

Wrap Up:

Investors are not happy with the recent news of the QTT stock as the stock is facing bearish sentiment today. The performance in 2021 is not so much satisfactory as this stock lost approximately 69% year to date.

logo

Stocks Telegraph provides information and tools designed to assist investors and Wall Street players. A major goal is to offer financiers comprehensive information that will help them gain insight into investing.

Stocks Telegraph does not provide any advice or recommendations for buying or selling stocks, securities, or other financial products. Information contained on this website is for informational purposes only and should not be construed as professional financial, investment or other advice. Stocks Telegraph is not liable for any loss or damage that may occur as a result of reliance on this data.

© 2025 Stocks Telegraph All rights reserved.
Most stock quote data provided by financialmodelingprep.com

stockstelegraph

Don't have an account?

stockstelegraph

Don't have an account?

stockstelegraph

Already have an account?

stockstelegraph
Smart Screening Tools for Exceptional Returns
stockstelegraph

For just $1, you can unlock ST Grading’s top-rated stocks that consistently beat the market. Our AI-powered Smart Screener finds winning trades in seconds, helping you uncover hidden opportunities before others do.

Ready to Win Big?

Try Now for Just $1!
stockstelegraph