Why Datasea Shares Are Falling Today

Datasea Inc. DTSS shares are down around 6% in the premarket session on Friday after ending yesterday’s run on the bourses with over 9% gain. 

In the last one month, the company has added almost 300% to its share value.

Yesterday, the company announced that on February 2, 2024, Guozhong Times (Beijing) Technology, a subsidiary of the Chinese operating company contractually controlled by the company, entered into a pact with Hangzhou Chongda Technology Co.

The deal inked on February 2 aims to increase the sales of 5G multimodal communication services in China.

Under the deal, Chongda can purchase 5G multimodal communication delivery services over 12 months, commencing on February 3, 2024, with an estimated total value of approximately $30 million.

“At the same time, the company is negotiating with major potential clients of 5G multimodal communication services and expects to reach more agreements,” Datasea CEO Zhixin Liu commented.

Datasea recorded $18.3 million in revenue from 5G multimodal communication related services in the first and second quarters of 2024 in the aggregate, proving its ability to provide customers with efficient and top-notch services. 

Price Action: DTSS shares are trading lower by 6.01% to $9.23 on the last check Friday.