Youxin Technology Stock Soars 59% on Salesforce Partner Deal
Shares surge after-hours on news of acquiring a 51% stake in enterprise CRM specialist Celnet Technology.
Shares of Youxin Technology Ltd (NASDAQ:YAAS) rocketed more than 59% in after-hours trading Tuesday following a significant strategic move to expand its footprint in the enterprise software market. The surge came after the company in Celnet Technology Co., Ltd., a key partner of Salesforce in China.
The deal, valued at approximately $736,461 in cash plus performance-based equity rewards, marks a pivotal effort by Youxin to bolster its offerings. Celnet is a prominent player in China's customer relationship management (CRM) sector, specializing in AI-powered services for enterprise clients. The firm has a strong track record, having completed over 580 projects for more than 350 enterprise customers.
The dramatic after-hours climb to $0.12 per share was a stark reversal from the stock's performance during regular trading hours, where it fell 10.75%. Despite the significant jump, Youxin's stock remains near its 52-week low, having fallen over 97% in the past year, reflecting broader challenges for the company.
Shaozhang Lin, CEO of Youxin Technology, stated that the acquisition is expected to create powerful synergies. The combination of Youxin's retail-focused Software-as-a-Service (SaaS) platforms with Celnet's deep enterprise CRM expertise aims to create a comprehensive digital transformation ecosystem. , with 90% of its members holding Salesforce certifications, a factor that likely appealed to Youxin.
This strategic acquisition could enhance Youxin's competitive position significantly, positioning it as a more formidable player in China's rapidly growing market for digital enterprise solutions. Investors reacted positively to the news, signaling confidence that the move could help reverse the stock's long-term downward trend. However, the company's small market capitalization of just $4.55 million underscores the high-risk, high-reward nature of the investment. to see if the integration of Celnet can translate this after-hours enthusiasm into sustained growth.