NETE Net Element stock Story

NETE -  USA Stock  

USD 11.47  0.20  1.71%

It looks like Datasea will continue to recover much faster as its share price surged up 4.55% today to Net Element's 30.6101%. As many rational traders are trying to avoid technology space, it makes sense to digest Net Element a little further and understand how it stands against Datasea and other similar entities. We are going to discuss some of the competitive aspects of both Net Element and Datasea.
Published over six months ago
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What should I trade first Net Element (NASDAQ:NETE) or Datasea?
By analyzing existing technical and fundamental indicators between Net Element and Datasea, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Datasea with a short position in Net Element. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Net Element has an asset utilization ratio of 274.68 percent. This indicates that the company is making $2.75 for each dollar of assets. An increasing asset utilization means that Net Element is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as NETE Net Element or DTSS Datasea is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Net Element's Liquidity

Net Element financial leverage refers to using borrowed capital as a funding source to finance Net Element ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Net Element financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Net Element's total debt and its cash.

Correlation Between NETE Net Element and Datasea

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Net Element together with similar or unrelated positions with a negative correlation. For example, you can also add Datasea to your portfolio. If Datasea is not perfectly correlated to Net Element it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Net Element for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between NETE and DTSS for more information.


Are you currently holding both Net Element and Datasea in your portfolio?
Please note if you are using this as a pair-trade strategy between Net Element and Datasea, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Detailed Perspective On Net Element

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Net Element revenue. Based on the latest financial disclosure, Net Element reported 62.94 M of revenue. This is 98.46% lower than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The revenue for all United States stocks is 99.33% higher than that of the company. As for Datasea we see revenue of 1.42 M, which is much higher than that of the Software—Infrastructure

62.9 M
NETE62.94 Million97.79
DTSS1.42 Million2.21

Our perspective of the latest Net Element surge

Coefficient of variation is down to 40432.23. It may indicate a possible volatility dip. Net Element is displaying above-average volatility over the selected time horizon. Investors should scrutinize Net Element independently to ensure intended market timing strategies are aligned with expectations about Net Element volatility.

The Bottom Line

Although many other companies within the software—infrastructure industry are still a little expensive, even after the recent corrections, Net Element may offer a potential longer-term growth to shareholders. To conclude, as of the 20th of November 2020, our latest 30 days 'Buy-Sell' recommendation on the firm is Cautious Hold. We believe Net Element is currently overvalued with very high probability of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Net Element. Please refer to our Terms of Use for any information regarding our disclosure principles.

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