Color Star Technology Ltd (NASDAQ:CSCW) Stock Continues to Trend Lower: Down 16% in a Week

Global entertainment technology firm Color Star Technology Ltd (NASDAQ:CSCW) has seen its stock suffer from a pretty strong selloff in the past few days and the situation remained unchanged on Monday as the stock tanked by 6%. The decline in the stock on Monday took its gains over the course of the past week to as much as 16%.

Market Stats

On Monday, CSCW stock closed lower by 6.24% at $0.6372 with more than 11.49 million shares, compared to its average volume of 5.85 million shares. The stock has moved within a range of $0.6210 – 0.7150 after opening the trade at $0.6855.

Earnings Recap

The company is primarily involved with applying artificial intelligence and advanced technology in the entertainment space. The company had revealed its financial results for the 2021 fiscal year last week and yesterday, Color Star announced that it remained committed to the task of creating new entertainment products specifically meant for the metaverse.

In this regard, it should be noted that it was at the start of 2021 that the company had first announced that it was in the process of developing its metaverse concept and products which were related to metaverse entertainment.

Since that announcement, Color Star had come into considerable focus among investors. Despite the poor performance of the Color Star stock in the past few days, it could be argued that it is an innovative company and hence, investors could consider keeping the stock in their watch lists at this point.

Key Quote

Mr. Basil Wilson, CEO of Color Star, commented: “Everyone and every company has a different understanding of the metaverse concept. We at Color Star believe that the metaverse should be a world that allows all users to express their passions and experience life state that is different from real life. Color Star’s entertainment metaverse can be based in a city, or a different planet, that combines virtual reality with reality, where one can regain his or her values and have new experiences. There will be no “losers” in Color Star’s metaverse; everyone can have a wonderful life and even become a superstar. There will be no harm, danger, or war, because everything is ideal, beautiful, and good – even the air are colors of the rainbow. This is the kind of metaverse that Color Star strives to create and bring to global users.”

Traders Corner

CSCW stock is trading below the 50-Day and 200-Day Moving averages of $0.73 and $0.96 respectively. However, the stock is trading above the 20-Day moving average of $0.64. The stock is up 25% in the past month.