LAIX Inc (NYSE:LAIX) Stock Is In Serious Downtrend: Time To Ignore?
In recent times the China based artificial intelligence firm LAIX Inc (NYSE:LAIX) has come on to the radars of some investors but this past Friday the stock suffered from a strong selloff and went down by as much as 27%.
While the decline recorded by the LAIX stock was alarming, it is also necessary for investors to keep in mind that there was no news about the company that could have brought about the selloff. In this situation, it might be a good idea for investors to get an idea about the company’s business and also look into its financial performance.
The company is involved in the creation and delivery of products that are meant for helping with learning the English language. Back on May 26, LAIX announced its unaudited financial results for the first fiscal quarter that ended on March 31, 2021.
The company managed to generate net income of RMB12.2 million as opposed to a net loss to the tune of RMB34.7 million in the quarter that ended on December 31, 2021. In the prior year period, the company had suffered a net loss of as much as RMB197 million. On the other hand, the gross margins in the first quarter came in at 77.6%. In the previous quarter, the gross margins had been 75.4%.
Market Reaction:
On Friday, LAIX stock slumped 26.76% at $1.04 with more than 2.30 million shares, compared to its average volume of 800k shares. The stock has moved within a range of $1.0300 – 1.2800 after opening the trade at $1.17. Over the past 52-week, the stock has been trading within a range of $1.0300 – 11.6500.
