Is Meten EdtechX Education Group a Buy Under $1? By StockNews

Leading English language training provider Meten Holding Group’s (METX) stock has soared 54.5% in price over the past month thanks to the company’s strategic collaboration with AGM Group Holdings. However, given the company’s negative profit margins and mixed financials, can the stock continue rallying? Let’s discuss.Meten Holding Group Ltd. (METX), in Shenzhen, one of China’s top omnichannel English language training providers. It delivers English language and skills training to Chinese students and professionals. As of December 31, 2020, the company had 105 self-operated learning facilities in 28 cities throughout 15 provinces, autonomous regions, and municipalities, and 13 franchised learning centers in 12 cities across 11 provinces and municipalities.

The company’s shares have gained 54.5% in price over the past month to close yesterday’s trading session at $0.50, driven by METX’s partnership with AGM Group Holdings Inc., which is designed to boost its competitive position in the industry and position itself as a leading technology-driven blockchain and metaverse company.

However, METX’s shares have declined 74.9% year-to-date and 69.7% over the past six months. And the company’s underwhelming fundamentals could cause its shares to suffer a further pullback soon. In addition, the company’s inability to generate sufficient cash flows could mar its growth.

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