Besides having one of the coolest names in the stock market, Cloopen Group (NYSE:RAAS) is one of the more exciting stocks in the market today. Currently, shares of RAAS stock are 20% higher on extremely high volume.
Today’s price action in this little-known stock is noteworthy. Accordingly, many investors may want to know what’s moving this cloud-based communications stock today.
Of note, Cloopen Group is a China-based company. Given the rally we’re seeing in Chinese equities recently, perhaps today’s move isn’t surprising. Investors seem to be pricing in a return to normal for Chinese equities after what could only be described as a disastrous first half. A string of regulatory crackdowns has driven Chinese stock prices to lows not seen since the pandemic began. However, some indications are that President Xi may be jumping back on the capitalism bandwagon of late.
Indeed, for Cloopen Group, this recent decline has been even more pronounced. RAAS stock opened the year around $50 per share. Currently, shares are trading around the $5-per-share level, representing a decline of nearly 90% year-to-date.
Let’s dive into a few things investors may want to know about this potential recovery stock.
What Investors Need to Know About RAAS Stock
- Cloopen Group is a company focused on cloud-based communications solutions.
- These solutions include embedded messaging, voice calls, audio and video calls and instant messaging.
- Accordingly, given the rising demand for these services as a result of the pandemic, RAAS stock was a high-flyer earlier this year.
- Cloopen Group recently reported earnings, which beat analyst expectations.
- Specifically, the company’s revenue came in at $42 million versus expected sales of around $40 million.
- This 5% top-line beat has gotten investors excited once again in this growth stock.
- With a valuation around $920 million, RAAS stock currently trades at around 5.5 times annualized sales.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.