Stock Price Prediction

XNET stock is currently trading at $2.40, reflecting a 2.13% pre-market increase following the announcement of its acquisition of Shanghai Kuanghui Internet Technology Co. for RMB 500 million. Bulls view this positively as it strengthens Xunlei's ecosystem by integrating Hupu's sports content and user base, potentially driving revenue growth. With a healthy cash balance of $272 million and a share repurchase program, the stock could see further upside if the acquisition delivers as expected.

XNET stock currently trades at $2.40, and the bearish view stems from its declining cloud computing and live streaming revenues, as highlighted in its Q3 2024 earnings report. Despite a healthy cash balance of $272 million, the company faces challenges in sustaining growth, with a 4.9% YoY revenue decline and limited profitability improvements. Additionally, the recent acquisition of Hupu for RMB 500 million raises concerns about execution risks and potential overextension.