Why Datasea (DTSS) Stock Is Rising During Monday's Session

Datasea Inc DTSS shares are trading higher by 37% to $6.17 during Monday’s session after the company announced three sales agreements with its Chinese subsidiaries, totaling approximately $61.7 million.

Datasea’s subsidiary Guozhong Haoze secured a $30 million contract with Shenzhen Juhaowan Technology Co., Ltd. on May 15, 2024, to provide 5G AI multimodal communication services over 12 months. Similarly, Datasea’s Heilongjiang Xunrui subsidiary signed a $30 million contract with Shenzhen Yuzhongqing Technology Co., Ltd. on May 13.

Additionally, the company’s Shuhai Jingwei subsidiary finalized a $1.7 million agreement with Tianjin Qianli Culture Communication Co., Ltd. on June 8, to supply high-tech acoustic products, including air disinfection machines and sleep aids, by December 31.

CEO Liu Zhixin highlighted the significance of these deals, projecting a boost in customer orders and market traction for both 5G AI communications and acoustic product segments, driven by their innovative value in the 5G and healthy living markets.

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Is DTSS A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Datasea‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Datasea does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.97%, you'll need to buy a share of Global Net Lease by the Jul. 11, 2024. Once done, you can expect to receive a nominal payout of $0.28 on Jul. 16, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Datasea will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, DTSS has a 52-week high of $20.29 and a 52-week low of $1.42.