ZW Data Action Technologies Inc logo

ZW Data Action Technologies Inc(CNET)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
WEAK BUY
BUY for 25 days
PROFIT SINCE LAST BUY
-5.07% ā–¼
LAST CLOSE
$1.31
09/22/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for CNET

09/22/2026: CNET (1-star) has a low Upturn Star Rating. Not recommended to BUY.

ZW Data Action Technologies is a small-cap company providing internet advertising and data analytics solutions to SMEs in China. Its main strength lies in its niche focus on helping smaller businesses optimize their digital presence. While the shift toward data-driven services presents a potential growth opportunity, the company faces stiff competition from dominant tech conglomerates and significant regulatory risks. Investors should monitor its ability to navigate the evolving Chinese regulatory landscape and maintain client retention in a highly competitive market. This stock is generally more suitable for investors with a high risk tolerance who are looking for exposure to the niche Chinese digital services sector.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorWeak fitThe company lacks the consistent high-growth characteristics typically sought by growth investors.
Momentum investorMixed fitMomentum fit is conditional on a clear and sustained positive upturn signal in share price.
Value investorWeak fitThe volatility and inconsistent earnings make it difficult to determine a reliable margin of safety.
Dividend investorWeak fitThe company does not pay dividends and retains capital for operational needs.
Low-risk investorWeak fitHigh volatility and sensitivity to regulatory/macro risks make this unsuitable for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is subject to frequent and large price swings that can result in significant capital losses.
Valuation riskHighInconsistent earnings make it challenging to justify current valuation levels.
Competition risk (Major tech platforms)StrongThe dominance of large players like Baidu and Tencent limits the company's ability to capture market share.
Business qualityMediumThe business relies on a volatile SME advertising market rather than recurring subscription income.
Dividend incomeLow / noneThe company does not provide income through dividends.
Execution riskHighSuccess depends on the company's ability to compete effectively in a difficult and changing regulatory environment.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -41.25%
Avg. Invested days 23
Today’s Advisory WEAK BUY
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/22/2026

Upturn Scorecard

Upturn Star Rating

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CNET receives a 2-star rating, supported by available scored pillars. The rating is constrained by weak unit economics, soft analyst coverage, and weak price momentum.

Company Fundamentals

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CNET has moderate overall fundamentals (3 stars), with soft financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+52.9%) is partially offset by soft cash generation (FCF margin -34.5%), negative revenue growth (-70.1%), soft profitability (net margin -38.4%).

Financial Health Rating

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CNET's financial health is supported by moderate liquidity, including working-capital and asset support (WC/assets 25.7%). Profitability is weak (1 stars), which helps explain the 2-star overall score.

Growth Momentum Score

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Earnings growth is CNET's strongest growth driver at +52.9% FY2025 versus FY2024 (strong, 5 stars). By comparison, free-cash-flow growth (+22.7%, solid) is also solid, while revenue growth (-70.1%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

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Institutional ownership is 0.7% and approximately 82.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 17.51% supports management-shareholder alignment.

Top 5 Institutional Investors

Virtu Financial LLC 0.41%
Citadel Advisors Llc 0.35%
Susquehanna International Group, LLP 0.34%
UBS Group AG 0.04%
SBI Securities Co Ltd 0.00%

Unit Economics (Per $1K Revenue)

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CNET generates approximately $77 of gross profit, $-423 of operating income, and $-345 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

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Effective Tax Rate: 0.06%

Quantitative Style Profile

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CNET has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 4.81M USD
Price to earnings Ratio -
1Y Target Price 27.7
Price to earnings Ratio -
1Y Target Price 27.7
Volume (30-day avg) 62.3K shares
Beta 0.84
52 Weeks Range 0.57 - 2.60
Updated Date 09/22/2026
52 Weeks Range 0.57 - 2.60
Updated Date 09/22/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.24

How Company Makes Money

Business areaWhat it includesRetail investor read
Advertising & MarketingRevenue generated from digital marketing campaigns, lead generation, and ad space sales.The company makes money by charging small businesses for helping them find customers online.
Data AnalyticsService fees for providing insights, reports, and marketing optimization tools to clients.The company charges for services that analyze marketing data to help clients improve their ad performance.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 1.33
Enterprise Value 4.35M
Price to Sales(TTM) 1.39
Enterprise Value 4.35M
Price to Sales(TTM) 1.39
Enterprise Value to Revenue 1.26
Enterprise Value to EBITDA -1.52
Shares Outstanding 3.67M
Shares Floating 3.03M
Shares Outstanding 3.67M
Shares Floating 3.03M
Percent Insiders 17.51
Percent Institutions 0.67

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

šŸ“ˆ Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

šŸ›”ļø Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

āš™ļø Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About ZW Data Action Technologies Inc

Exchange NASDAQ
Headquarters -
IPO Launch date 2009-08-14
Founder, Chairman, CEO, President, Acting CFO & Secretary Mr. Handong Cheng
Sector Communication Services
Industry Advertising Agencies
Full time employees 13
Full time employees 13

ZW Data Action Technologies Inc., together with its subsidiaries, provides omni-channel advertising, precision marketing, influencer marketing, and data analysis management systems in the People's Republic of China. It offers Internet advertising, e-commerce online to offline (O2O) advertising, marketing services, and related value-added technical services, as well as the related data and technical services to small and medium enterprises through its Internet portals, sales agents, distributors, and/or resellers. The company also develops and operates blockchain enabled web/mobile applications, as well as distribution of the right to use search engine marketing services; blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, it distributes health and wellness related products. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. The company was founded in 2003 and is based in Central, Hong Kong.