CooTek Cayman (NYSE:CTK) is a mobile internet company with a global vision that offers content-rich mobile applications, focusing on three categories: online literature, scenario-based content apps and mobile games. Since the launch of its global pan-entertainment strategy, CTK has built an expansive content-based ecosystem.
CooTek’s hit game Love Fantasy topped the most downloaded iOS Chinese overseas games chart in December 2021, surpassing big names such as PUBG and Genshin Impact.
The company is now looking to make its first step towards the Metaverse. The Chairman, Karl Zhang, said: “We have been further strengthening our exposure in the overseas mobile games and online literature markets based on our recently launched Metaverse and NFT plan. We developed and published 14 new mobile games in the third quarter of 2021 and currently have a pipeline of 15-20 games in the fourth quarter of 2021 with 2 key mobile casual games.”
Crypto has been showing signs of progress and especially Metaverse coins such as Mana. The price has held the 200-day moving average. We could be seeing a further move up which would lead Metaverse-linked stock plays higher too. And our favourite is CooTek Cayman.
Potential move ahead
CTK has a market cap of $18M and a share float of 21.7 million. Volume hit 21.5 million during yesterdays trading day, about 14 times the daily average. Also to note is the impressive move up in after hours. Volume stayed high as the stock gained 47% after gaining 37% during the day.
The price closed after hours at $0.50. We think a strong continuation could see the price up to $1 during March. However, resistance at $0.765 (December 30th highs) will need to breakthrough first.
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