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Remark Holdings Inc (NASDAQ:MARK) shares soared by more than 250% on Tuesday as traders circled a social media post from the company about a partnership with Microsoft Corp (NASDAQ:MSFT). After market close, the company provided an update that sent shares tumbling.
What Happened: AI solutions company Remark Holdings announced that it entered into an “$80 million dollar initial partnership” with Microsoft on Tuesday.
"It’s official!!! @Microsoft making #RemarkAI global together," the company said in a post on X.
A lot of X users commented on the post, asking why an official press release was not issued on the news. Benzinga reached out to the company and received confirmation of the deal directly from Remark CEO Kai-Shing Tao.
Remark then issued an official announcement in a regulatory filing late Tuesday showing the social media post was somewhat misleading.
Remark confirmed Microsoft entered into a five-year cloud services and marketing agreement with Remark on Jan. 29, but the details of the “$80 million” deal were different than anticipated, which sparked a selloff in shares.
“During the agreement period, our Remark AI business unit and its customers will consume $80 million of Microsoft Azure cloud services ("Azure Services") and Microsoft, to aid Remark AI in integrating new customers with Azure and driving use of Azure Services, will co-market Remark AI's solutions on the Microsoft Azure Marketplace and provide Remark AI with $2 million of Azure cloud services credits and approximately $0.7 million of consulting and migration credits,” the filing stated.
Remark noted the partnership is centered around its computer vision models, which it believed was “the most important essential part of the #AI landscape.” Remark uses AI-powered analytics computer vision and smart agent solutions to deliver an integrated suite of AI tools that help organizations understand their customer demographics and behavior.
Check This Out: Microsoft Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cloud Growth, ‘Applying AI At Scale’ And More
MARK Price Action: Remark Holdings shares closed Tuesday up 264.4% at $1.25 before falling in after-hours trading. The stock was down 36.4% at $0.795 at last check, according to Benzinga Pro.
Photo: Shutterstock
