Senmiao Technology Stock (AIHS) Plummets 40% on Changsha Yipeng Agreement
Senmiao Technology (AIHS) stock took a beating on Friday after the financing and servicing company announced a collaboration agreement with Changsha Yipeng Information Technology. The two companies will work together to develop an artificial intelligence (AI)-backed data management system.
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The system created by these two companies will be used to 'improve efficiency of online ride-hailing management platforms.' Changsha Yipeng will bring its experience creating AI management systems, while Senmiao Technology will contribute its data from the Chinese online ride-hailing industry. The two companies also intend to seek financing for the development and deployment of this system.
Investors were not pleased by today's announcement, which sent shares of AIHS stock down 38.83% in pre-market trading, following a 10.43% drop yesterday. Shares of AIHS have also fallen 3.74% year-to-date. As of this writing, more than 9 million shares of AIHS have traded, compared to a three-month daily average of 1.4 million shares.
Is Senmiao Technology Stock a Buy, Sell, or Hold?
Wall Street doesn't have the best coverage of Senmiao Technology, but TipRanks' AI analyst Spark has it covered. Spark rates AIHS an Underperform (36) with no price target. It cites 'significant financial challenges with declining revenues and negative equity,' as reasons for the rating.
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