17 Education & Technology Group Inc. (YQ) stock has declined 21.28% as of this writing in Monday,s pre-market. In the regular trading session on Friday, YQ’s stock lost 38.70%. YQ stock has moved down 44.05% in the past week. Over the past three months, the YQ stock has lost 80.66%, while over the past six months, it has shed 91.66%. Further, the company has a current market of $443.80 million and its outstanding shares stood at 187.87 million.
YQ facing investigation
On July 23, 2021, Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, announced that it is investigating 17 Education & Technology Group Inc for potential securities violations and breach of fiduciary duty.
When it comes to discovering hidden gems within the stock market, Stock Wire News has consistently provided invaluable insights. Stock Wire News invites you to explore their upcoming Wealth Building Report. This report will shine a spotlight on little-known companies with the potential for substantial growth in 2024, and it's completely FREE for a limited time.
Claim the free report now by clicking here and start discovering the hidden gems of the market
Sponsored
On July 23, 2021, the stock price of 17 Education & Technology Group Inc. fell by over 40% premarket after Bloomberg reported that the Chinese government is reportedly considering converting tutoring companies into non-profit organizations.
YQ Response to Media Reports and market speculations
On July 23, 2021,17 Education & Technology Group Inc (YQ) noted that certain English and Chinese language media outlets reported that the PRC regulators are considering a new set of regulations concerning after-school tutoring services related to school subjects taught in China’s compulsory education system. The regulations have not been published, and the Company has not received official notification of the regulations. It is the Company’s policy not to comment on market speculations.
YQ Recent financial results announcement
On May 24, 2021, 17 Education & Technology Group Inc (YQ) reported its unaudited financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- 17 Education & Technology Group earned net revenue of 2 million (US$72.4 million) in Q1 2021 compared to RMB229.0 million in the first quarter of 2020.
- In Q1 2021, the gross margin was 60.4%, compared with 64.1% in Q1 2020.
- In Q1 2021, the total operating expenses were 2 million (US$145.5 million) compared to RMB374.6 million in the first quarter of 2020.
- YQ suffered a net loss of RMB659.7 million (US$100.7 million), compared with a net loss of RMB224.2 million in Q1 2020.
- The adjusted net loss was 8 million (US$89.9 million) inQ1 2021 compared with an adjusted net loss of RMB178.7 million in the first quarter of 2020.
- As of March 31, 2021, YQ had cash and cash equivalents of RMB2,240.3 million (US$341.9 million) compared with RMB2,835.0 million as of December 31, 2020.
Conclusion
The YQ stock lost significantly in the morning session due to speculations which we have discussed above. YQ also suffered a heavy loss on Friday as well but made some recovery in the aftermarket on Friday. Let’s see how it perform in the remaining trading session of today.