Ambow Education Partners With Cisco

Unlike the last time Ambow traded over 5 million shares on partnership news, this time investors weren't as sold on the hype.
Nov. 04, 2020 06:29
Ambow Education Partners With Cisco

Ambow Education Holding Ltd. (NYSE: AMBO) announced Tuesday that it has entered a strategic partnership with Cisco (Nasdaq: CSCO) to launch international career education, training, and certification services online.

The Chinese education services provider said two parties will provide high-quality online courses as well as authoritative certification of IT and the Internet, for college students and industry professionals globally. Additionally, two parties will cooperate on designing vocational education curriculums, building "smart classrooms" and strengthening innovation and entrepreneurship.

Jin Huang, the president and chief executive officer of Ambow, stated: "Ambow is no stranger to working with world-famous enterprises to continuously expand and integrate online education resources. "

Huang added, "The partnership programs, designed to improve activities for educational institutions and end users, involve cloud training, well-known certifications and job placement, which leverage Ambow's own patent technology, online and offline systems, and other high-quality global resources."

Cisco is the second global enterprise to team up following Ambow's strategic partnership with Amazon. Ambow's stock soared 125% on the news of the expanded partnership with Amazon in September.

Today, Ambow traded down 17.36% to $2.19 from yesterday's closing price of $2.65 on a volume of 6.14 million shares. The day before, the stock traded only 5,700 shares. Shareholders no doubt took advantage of the unusual volume today on the upbeat news to get out of some stock.

Investors who bought in on the last unusually high trading day of Sept. 28 (when the stock traded 28 millon shares on news of a partnership with Amazon) likely took this opportunity to get out of some shares after seeing the stock stedaily decline since the Sept. 28 midday high of over $6 per share.

This time, however, investors weren't as sold on the hype.