Remark Holdings (NASDAQ: MARK) shares plunged over 48% on Wednesday, retracting some gains earned post collaboration with Microsoft (NASDAQ: MSFT) on Tuesday.
Remark and Microsoft announced a five-year partnership on Tuesday, encompassing cloud services and marketing initiatives. Under this agreement, Remark’s AI division will utilize Microsoft Azure cloud services worth $80 million.
In addition to the partnership, Microsoft will facilitate new customer acquisition for Remark AI via its cloud services. This will involve co-marketing the unit’s services on the Microsoft Azure Marketplace. Furthermore, Microsoft will provide Remark AI with $2 million in Azure cloud services credits and $700,000 in consulting and migration credits.
At the same time, Remark (NASDAQ: MARK) implemented amendments to the company’s bylaws. The modifications altered the necessary backing for votes at shareholder meetings from a majority to one-third of the shares that are eligible to vote.
Overview of Recent Remark (NASDAQ: MARK) Stock Activity
Following the revelation of the deal with Microsoft, Remark’s shares saw a significant rise of 264.4% during the standard trading hours on Tuesday. This uptick coincided with a substantial trading volume, as nearly 214 million shares were transacted.
MARK stock, which had seen significant gains, experienced a downturn on Wednesday, closing at a 48.40% loss. This event coincided with the trading of an estimated 40 million shares. It is important to note that the company’s typical daily trading volume hovers around 5.36 million shares.
