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CooTek Inc (NYSE:CTK) Stock Pulls Back After The News Update

Ash K , , , ,

The game development industry in China has grown at an eye watering rate in the past few years and nowadays, the game development companies are increasingly looking to compete in the massive global market.

Market Stats

On Tuesday, CTK stock  moved down 2.73% to $1.07 with more than 354k, compared to its average volume of 305k shares. The stock has moved within a range of $1.0500 – 1.1027 after opening the trade at $1.10.

In-App Advertisement Model Benefits CooTek’s Mobile Games to Grow Exponentially

If you are looking to get into that particular sector then the CooTek Inc (NYSE:CTK) stock could be worth looking into. Although the stock declined by as much as 5% on Tuesday, it might still be a good move to take a closer look. CooTek has decided to skirt the intense competition from much bigger rivals and has instead concentrated on fast casual games which are fairly simple to follow.

The company has made considerable investments in the mobile gaming space but at the same time it has continued to work on its entertainment content business as well. At this point in time, the company is looking to create a whole content ecosystem that is going to be based on mobile phone games, assorted content and also online literature.

While mobile gaming remains the current point of focus for CooTek, the bulk of the company’s revenues are currently generated by content related products. Investors could consider adding the stock to their watch lists.

Key Quote

“The threshold of producing hyper-casual games is not high. Among the mass production, only when the conversion rate reaches a certain level and the cost per install (CPI) is low enough, for example, $0.2-0.3 per installation, that we can consider it a feasible idea and put it into action,” Lu explained.

Traders Corner

CTK stock is trading below the 20-Day and 50-Day Moving averages of $1.14 and $1.28 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.14. The stock is down 34% in the past 3-month.