Why Is Massimo Group Stock Falling Thursday?

Massimo Group (NASDAQ:MAMO) stock is down during premarket trading on Thursday after the company announced a non-binding Letter of Intent to acquire 100% of FST Development Company Limited, a technology firm specializing in artificial intelligence (AI)-driven solutions.

MAMO Announces Intent to Acquire FST

The proposed acquisition values FST at a pre-money equity valuation of approximately $38 million to $50 million, reflecting its proprietary technology and growth potential. Massimo plans to acquire FST for total consideration ranging from $27 million to $35 million, which may be satisfied through stock issuance or cash.

Following the acquisition, Massimo aims to integrate its manufacturing capabilities with FST’s AI technologies, creating a unified ecosystem that spans mobility and health solutions.

MAMO Stock Plummets Below Key SMAs

Massimo Group’s stock is currently trading 66.2% below its 20-day simple moving average (SMA) and 71.1% below its 50-day SMA, indicating significant bearish momentum. Over the past 12 months, shares have decreased by 60.20%, and the stock is positioned closer to its 52-week low of $1.03 than its high of $5.59.

The RSI is at 15.38, indicating that the stock is in oversold territory, while the MACD is below its signal line, suggesting bearish pressure. The combination of oversold RSI and bearish MACD indicates mixed momentum.

• Key Resistance: $3.50
• Key Support: $1.00

Massimo’s Strategic Move into AI Mobility

Massimo Group is engaged in the mid-tier band of the Powersports Vehicles and Boats Industry. It manufactures, imports, and distributes a diversified portfolio of products, including utility terrain vehicles (UTVs), all-terrain vehicles (ATVs), motorcycles, scooters, and pontoon boats.

MAMO’s Premarket Price Drops 9.09%

MAMO Price Action: Massimo shares were down 8.26% at $1.11 during premarket trading on Thursday. The stock is trading near its 52-week low of $1.03, according to Benzinga Pro data.

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