What happened
Shares of artificial intelligence and digital media specialist Remark Holdings (MARK -2.71%) are tumbling 25% in morning trading after a report of disastrous first-quarter earnings.
The company cited a litany of reasons for revenue plunging 67% from the year-ago period, including the Chinese New Year, the trade war between the U.S. and China, the COVID-19 pandemic, and working capital constraints.
Image source: Getty Images.
So what
The combined impact of these factors prevented Remark from rolling out new products while delaying testing and customization work on other projects. Revenue plunged to $400,000 from $1.2 million last year, though it did narrow its losses to $3.5 million from $5.9 million, but only because costs were cut in half, as it was unable to complete any projects and it laid off staff.
Now what
Remark Holdings stock has soared in 2020, rising from a literal penny stock to reach a high of around $3.50 in May. Those gains have since diminished, and today the shares are plunging.
It reportedly was able to repurpose its thermal imaging equipment for use in a post-pandemic world to scan large crowds and high-traffic areas for indications people may need secondary screening for COVID-19.
Its stock surged when it was rumored to have partnered with Wynn Resorts (WYNN -0.77%) as the casino operator prepared to reopen its gaming halls. The deal, though, could not be confirmed, and its stock has since lost about 45% of its value.
