Zhangmen Education Inc. (ZME) stock declined in the pre-market. The stock declined by 12.44% to reach $1.83. In the last trading session, the stock closed at $2.09. This is a 38.41% gain in one day. But in the pre-hours trading session, it declined by 12.44%. Let’s see the financial and important news about Zhangmen Education Inc. (ZME).
The Johnson Fistel, LLP investigation about Zhangmen Education Inc. (ZME) IPO:
The Johnson Fistel, LLP which is a shareholders rights Law Firm, is all set to look into and investigate the claims against the company against the violation of federal securities laws. Zhangmen Education Inc. (ZME) is a leading online education company in China. They provided a personalized online education to K-12 students.
ZME sold 3.6 million ADS (American depositary shares) that priced at $11.50 per share in its initial public offering or IPO on 8th June 2021. But since the IPO the stock of Zhangmen Education Inc. (ZME) plunged and as of today 18th November 2021 at the time of this writing it closed at $2.09.
The law firm wants to investigate to determine that whether the company filing with Unite States SEC (Security Exchange Commission) misinterpreted the company’s financial and operational outlook in regards to its Initial Public Offering (IPO).
Financial highlights of 2nd quarter 2021:
- The Net revenue of the ZME was $194.7 million which is a 35% increase from the same quarter of the last year.
- Gross profit was $85.7 million which is a 30.1% increase from the same quarter of the last year. But the gross margin decreased slightly due to the increased contribution from their small class business. That is due to the fact that the business is new that’s why it has a relatively low gross margin.
- The operating expenses were $208.2 million for the second quarter. That is an increase of 102.5%.
- The net loss in the 2nd quarter was $110.0 million as compared to the 2nd quarter of the last year which was $173.8 million.
Conclusion
The upcoming days for the Zhangmen Education Inc. (ZME) stock will be important. Any major development in the case will have a significant effect on the stock of its company. Investors should keep a watch on the news related to the company for any major development in the case.
