Cheer Holding, Inc. (NASDAQ: CHR) has become one of the most dramatic micro-cap stories on the Nasdaq in late 2025. The Beijing-based AI and mobile internet company is simultaneously:
- Trading around five cents a share
- Facing an active Nasdaq delisting process
- Reviewing two preliminary buyout offers at more than 10x the current price
- Raising fresh capital through highly dilutive offerings
For traders and investors tracking CHR on December 9, 2025, this is a classic “event-driven penny stock” story where corporate actions and listing status matter as much as fundamentals.
Below is a structured look at the latest price action, news, forecasts and risks.
Cheer Holding Stock Today: A Five-Cent, Micro-Cap Rollercoaster
As of December 9, 2025, Cheer Holding’s Class A shares trade on Nasdaq under the ticker CHR at roughly $0.048–$0.05 per share. Recent data from multiple quote providers puts:
- Last close (Dec 8, 2025): about $0.048, up roughly 18% on the day [1]
- Recent intraday range: roughly $0.0425–$0.048 [2]
- 52‑week range: approximately $0.036–$3.10 [3]
- Performance in 2025: down about 98% from ~$2.49 at the start of the year, according to MarketBeat’s performance summary [4]
Different data vendors report slightly different market caps (from under $1 million to around $5 million) and share counts, reflecting how fast the capital structure is changing after multiple offerings in 2025. Broadly, CHR is now a tiny, ultra-volatile micro‑cap with daily volume often in the tens of millions of shares. [5]
What Cheer Holding Actually Does
Cheer Holding positions itself as a “next-generation mobile internet infrastructure and platform” provider in China, building a digital ecosystem that blends AI, web3, VR/AR and cloud infrastructure. [6]
Key parts of its ecosystem include:
- CHEERS Video – a short‑video and media app with tens of millions of monthly active users.
- CHEERS e‑Mall – an integrated e‑commerce platform leveraging livestreaming and short video.
- CHEERS Telepathy – an AI-powered content and portrait creation platform.
- CHEERS Open Data & Polaris Intelligent Cloud – data and cloud infrastructure aimed at enterprise and developer use cases.
- Other apps and services such as CheerReal (digital collectibles/NFTs), CheerCar, CheerChat, livestreaming and content production. [7]
On October 28, 2025, the company launched CHEERS Telepathy AI 3.0, touting a “full‑stack” portrait creation platform that:
- Generates 4K portraits in seconds from a single image across 1,000+ scenes
- Includes a “One‑Click Album to Video” feature at 30 fps
- Uses a new Polaris Intelligent Cloud 3.0 engine claimed to be 38% faster for 4K generation and about 98.4% accurate in pose/lighting matching
- Is trained on hundreds of millions of high‑resolution portraits and provides an open API for partners [8]
So on paper, Cheer is not a shell: it runs a sizeable app ecosystem with meaningful user metrics and an AI product strategy built around content creation and digital experiences.
Financial Performance: Profitable on Paper, But Under Strain
Full-Year 2024
For the year ended December 31, 2024, Cheer reported: [9]
- Revenue: about US$147.2 million, down ~3% year‑over‑year
- Net income: roughly US$26.0 million
- Operating cash flow: about US$22.9 million
- Cash & cash equivalents: ~US$197.7 million
- Working capital: ~US$265.7 million
The company described solid app‑usage metrics across CHEERS Video, CHEERS e‑Mall, CHEERS Telepathy and other apps, with particular growth in the AI‑driven Telepathy product.
First Half of 2025
On July 30, 2025, and then in a corrected release on August 6, Cheer reported for H1 2025: [10]
- Revenue:US$71.0 million
- Net income: about US$7.8 million, down significantly from US$12.4 million in H1 2024
- Cash & equivalents: around US$203.2 million
- Working capital: roughly US$284.5 million as of June 30, 2025
Business mix was heavily skewed toward the digital ecosystem:
- About 92% of revenue (US$65.5 million) came from the CHEERS App internet business, with the remainder from traditional media. [11]
Operational metrics for H1 2025 included: [12]
- CHEERS Video: ~440 million cumulative downloads and ~51.1 million monthly active users
- CHEERS Telepathy: monthly active users up more than 260% year‑over‑year to about 3.3 million
“Crazy Cheap” Multiples – With a Catch
Data aggregators such as StockAnalysis show trailing twelve‑month revenue around US$147 million and net income over US$21 million, yielding an apparently absurd trailing P/E around 0.02 at current prices. [13]
That headline number is deeply misleading for two reasons:
- Share count has exploded. As of December 31, 2024, Cheer had about 10.3 million Class A shares outstanding; more recent estimates put the share count above 100 million after multiple offerings and warrant structures. [14]
- Recent earnings will be spread over a far larger base. Unless profits grow dramatically, per‑share earnings will collapse as new shares (and warrant exercises) are fully reflected, making the headline P/E largely obsolete.
In short, the raw earnings snapshot looks strong, but capital structure changes, dilution and business risk largely explain why the market is not pricing CHR like a conventional profitable tech stock.
Capital Raises, Dilution and a Vanishing Buyback Story
Cheer’s 2025 capital markets activity has been aggressive:
- $8.5 million public offering (October 2025)
- Roughly 12.7 million units at $0.67 per unit
- Each unit included one Class A share (or pre‑funded warrant) plus Series A and Series B warrants with exercise price $0.7035
- Series B warrants allowed a “zero‑exercise‑price” option to receive more than five shares per warrant, implying extreme potential dilution [15]
- $15 million registered direct offering (announced November 5, 2025)
- Up to 187.5 million Class A shares (or pre‑funded warrants) at $0.08 per share
- Univest Securities acting as sole placement agent
- Proceeds earmarked for general corporate purposes and user‑acquisition spending [16]
Shareholders had actually authorized a US$50 million share repurchase program in December 2024, theoretically allowing Cheer to buy back stock over 36 months. [17] There is no evidence in public filings that this authorization has been used in a material way; instead, 2025 has been dominated by new share issuance at rapidly falling prices.
Add to this the May 12, 2025 AGM, where investors approved: [18]
- An increase in authorized Class A ordinary shares from 200 million to 500 million
- Board authority to implement a reverse share consolidation at ratios of 1‑for‑10, 1‑for‑25 or 1‑for‑50
The pattern—announcing a large buyback, then following with heavy issuance and optional reverse splits—is a major red flag for many investors.
Buyout Proposals at $0.56 and $0.52 per Share
The single biggest bullish headline around CHR in late 2025 has been two preliminary non‑binding acquisition proposals.
On November 5, 2025, Cheer disclosed that its board had received: [19]
- A proposal from Zhongsheng Dingxin Investment Fund Management (Beijing) Co., Ltd. (an existing shareholder) to acquire all outstanding Class A shares at US$0.56 in cash per share.
- A proposal from Excel Ally Ventures Limited to acquire all outstanding Class A shares at US$0.52 in cash per share.
On November 18, 2025, Cheer announced that its board had formed a Special Committee of independent directors to evaluate these proposals and any alternatives. The committee is chaired by Bing Zhang, alongside independent directors Zhihong Tan and Yong Li, with authority to hire independent financial and legal advisers. [20]
The company has explicitly cautioned that:
- Both offers are preliminary and non‑binding
- There is no assurance any definitive offer will be made or completed
- The company does not commit to providing regular updates beyond what the law requires [21]
Market Reaction
On the morning of November 5, CHR briefly traded around $0.31, more than 100% above the prior close near $0.136, on surging volume as traders reacted to the buyout headlines. [22]
However, the simultaneous announcement of the $15 million direct offering at $0.08 quickly shifted attention back to dilution, and the stock later slid back to a few cents.
With CHR currently around $0.05, the stock trades at a 90%-plus discount to both indicative offer prices. The market is clearly pricing a low probability that minority shareholders ultimately receive anything like $0.52–$0.56 per share—whether because:
- The bidders walk away
- Terms are revised downward
- A transaction occurs at the holding‑company level in a way that doesn’t fully reward existing U.S.‐listed shareholders
For now, the buyout story is an option, not a base case.
Nasdaq Delisting Risk: Low Price and $1 Minimum Bid Rules
Cheer’s listing status is a critical part of the thesis.
October 2025: Standard $1 Minimum Bid Deficiency
On October 16, 2025, Nasdaq notified Cheer that CHR was below the $1.00 minimum bid requirement under Listing Rule 5550(a)(2) for 30 consecutive business days. The company received until April 14, 2026 to regain compliance by trading at or above $1 for at least ten consecutive business days. [23]
This kind of deficiency notice is common among penny stocks and does not immediately threaten trading.
November 2025: “Low Priced Stocks” Delisting Determination
The real problem came later. On November 21, 2025, Cheer announced that Nasdaq staff had issued a delisting determination because: [24]
- CHR’s closing bid was at or below $0.10 for ten consecutive trading days, triggering Nasdaq’s “Low Priced Stocks” rule under Listing Rule 5810(c)(3)(A)(iii).
- The company simultaneously remained out of compliance with the earlier $1 minimum requirement.
Unless Cheer requested a hearing before the Nasdaq Hearings Panel by November 26, 2025, Nasdaq indicated that: [25]
- Trading in CHR would be suspended on December 1, 2025
- A Form 25‑NSE would be filed to remove the listing from Nasdaq Capital Market
Cheer has stated that it intends to request such a hearing, which would stay any suspension and Form 25 filing while the panel reviews the case. [26]
As of December 9, 2025, CHR is still quoted on Nasdaq, implying that the delisting process is in a procedural limbo while the appeal and potential remedies (including a shareholder‑approved reverse split) are considered.
Technicals, Short Interest and Sentiment
Price Action and Volatility
Across the past weeks:
- CHR has frequently moved 10–20% in a single day, with recent daily ranges around 12–13%. [27]
- Over the last year, the stock is down roughly 98%, from more than $2 at the start of 2025 and over $3 at its 52‑week high. [28]
That level of volatility is typical of event-driven penny stocks and makes CHR more of a trading vehicle than a conventional long‑term holding for most investors.
Short Interest: Conflicting Data
MarketBeat’s data shows: [29]
- Short interest: roughly 53% of float
- Short interest up ~158% versus last month
- Consensus rating: “Sell” from the limited analyst coverage available
By contrast, StockTitan’s summary page lists short interest around 0.7% of float and insider ownership near 40%, illustrating how messy micro‑cap data can become when share counts and floats are in flux. [30]
The safe takeaway is not the exact short‑interest figure but that sentiment is extremely polarized:
- CHR has a following among speculative traders on social platforms
- Traditional equity research coverage is minimal and cautious
- Data providers disagree on key metrics, reinforcing the need to double‑check any numbers used in a thesis
Third‑Party Forecasts and AI/Quant Models
Various quantitative and AI-driven services publish short‑ and long‑term price forecasts for CHR. They disagree dramatically, which is itself the most informative signal.
StockInvest.us: Negative, “Sell Candidate”
Technical analysis site StockInvest.us currently labels Cheer Holding as a “Sell candidate”, citing “several negative signals” and expecting the stock to “perform weakly in the next couple of days or weeks.” [31]
They estimate a “fair” opening price for December 9, 2025 around $0.0462, modestly below the prior close, and highlight:
- Nearby resistance in the $0.048–$0.052 area
- Short‑term support zones around $0.044 and $0.041–$0.040
This is a bearish short‑term technical view: limited upside, meaningful downside risk.
Intellectia.ai: Short-Term Bullish, Long-Term Moonshot
By contrast, Intellectia.ai, an AI‑driven technical platform, currently categorizes CHR as a “Strong Buy candidate”: [32]
- It notes 4 bullish vs 3 bearish technical signals and a recent price move up with rising volume.
- It sees short‑term price action in an uptrend starting early November, despite a broader downtrend.
- Its algorithmic “similar chart” analysis forecasts a roughly 10% upward shift over the next month from the current level.
More strikingly, Intellectia’s 2026 projections show average monthly prices above US$1.30 with peaks near US$1.85, implying multi‑bagger potential from today’s five‑cent level. These long‑dated numbers are based on pattern matching and backtests rather than traditional discounted cash-flow analysis.
XBP / StocksTelegraph: Very Bearish Near-Term
Another forecast engine, hosted by StocksTelegraph/XBP, takes the opposite side again: [33]
- Predicts CHR could fall to around $0.01 within two weeks, a drop of more than ‑75% from recent prices.
- Shows a two‑week projected range of $0.00–$0.03, with an average target of $0.01.
- Characterizes short‑term sentiment as bearish, with technical indicators suggesting ongoing weakness.
Its longer‑term grids, extending into 2026, frequently assign average prices of $0.00 or very low values in many months, effectively modeling a material probability of the stock going to zero—a common outcome in micro‑caps that eventually get delisted and fade into illiquidity.
How to Treat These Forecasts
All three systems use backward‑looking price data and technical indicators, not deep fundamental analysis of:
- Chinese regulatory risk
- Offshore/VIE structures
- Governance and related‑party dynamics
- Delisting paths or buyout deal structures
In a name as illiquid, event‑driven and micro‑cap as CHR, any algorithmic forecast should be considered speculative at best. The real price drivers over the next year are likely to be:
- Nasdaq’s hearing and delisting decision
- Any definitive agreement (or cancellation) around a take‑private deal
- Further equity or warrant offerings
- Changes in Chinese tech and U.S.–China capital‑markets policy
Key Risks and Catalysts to Watch
For anyone following Cheer Holding from December 9, 2025 onward, the main decision points are clear.
1. Nasdaq Listing Outcome
- Catalyst: Hearing before the Nasdaq Hearings Panel on the delisting determination under the low‑price rule. [34]
- Scenarios:
- Panel grants extra time subject to conditions (often including a reverse split).
- Panel denies relief and CHR eventually leaves Nasdaq for an OTC venue.
Outcome will directly affect liquidity, spreads and institutional accessibility.
2. Fate of the Buyout Proposals
- Catalyst: Any update from the Special Committee on the $0.56 and $0.52 go‑private proposals. [35]
- Scenarios:
- A definitive merger agreement at or near the indicated prices
- A renegotiated deal at a lower price
- Bidders withdraw, leaving shareholders with a standalone, heavily diluted micro‑cap
Given the massive gap between current price and indicative bids, even small hints about the committee’s stance could trigger sharp moves.
3. Reverse Split and Further Capital Raises
Cheer’s board already has authority to conduct a 1‑for‑10 to 1‑for‑50 reverse split and has shown a willingness to issue large blocks of new equity and warrants. [36]
Investors should watch for:
- Reverse split announcements around the time of any Nasdaq panel decision
- New shelf registrations or follow‑on offerings
- Terms of outstanding and newly issued warrants
In many penny‑stock cases, reverse splits are followed by more issuance, not less.
4. Real-World Traction of AI Products
On the fundamental side, it will matter whether:
- CHEERS Telepathy AI 3.0 gains real paying users or enterprise/API partners [37]
- Advertising and e‑commerce revenue stabilize or continue to slide in a challenging macro environment [38]
So far, press releases emphasize downloads and MAUs, but the market will likely want to see more granular monetization data before assigning a richer multiple.
Is Cheer Holding Stock a Speculative Opportunity or a Value Trap?
From an analytical standpoint, CHR combines:
- Fundamental positives
- Profitability in 2024 and H1 2025 on a consolidated basis [39]
- Large reported cash and working capital
- A real ecosystem of apps and AI tools with millions of users
- Structural and governance risks
- Heavy dilution, with share count ballooning via low‑priced offerings and complex warrants
- An authorized reverse split and ongoing Nasdaq delisting over low price
- Event risk around non‑binding buyout bids that may never crystallize
- Limited and cautious sell‑side coverage, with at least one analyst rating the stock a Sell [40]
For short‑term traders, CHR is essentially an event-driven lottery ticket tied to:
- News from the Nasdaq hearings
- Headlines about the Special Committee and bid negotiations
- Retail and algorithmic momentum flows in the penny‑stock space
For long‑term investors, the bar is much higher. You would need conviction that:
- The company’s cash and earnings are durable and transparently accessible to public shareholders, not just accounting artifacts; and
- Management will shift from dilution and capital‑markets engineering toward shareholder‑friendly capital allocation.
Until those questions are resolved, the combination of Nasdaq delisting risk, dilution, and binary corporate events means CHR sits firmly in high‑risk, speculative territory, despite what ultra‑low P/E ratios or optimistic AI-generated price targets might suggest.
References
1. finance.yahoo.com, 2. www.investing.com, 3. stockanalysis.com, 4. www.marketbeat.com, 5. www.stocktitan.net, 6. www.globenewswire.com, 7. www.globenewswire.com, 8. www.stocktitan.net, 9. www.globenewswire.com, 10. www.stocktitan.net, 11. www.stocktitan.net, 12. www.stocktitan.net, 13. stockanalysis.com, 14. www.globenewswire.com, 15. www.stocktitan.net, 16. www.stocktitan.net, 17. www.globenewswire.com, 18. www.stocktitan.net, 19. www.stocktitan.net, 20. www.stocktitan.net, 21. www.stocktitan.net, 22. ragingbull.com, 23. www.nasdaq.com, 24. www.investing.com, 25. www.investing.com, 26. www.investing.com, 27. www.investing.com, 28. www.marketbeat.com, 29. www.marketbeat.com, 30. www.stocktitan.net, 31. stockinvest.us, 32. intellectia.ai, 33. preview.xbpnews.com, 34. www.investing.com, 35. www.stocktitan.net, 36. www.stocktitan.net, 37. www.stocktitan.net, 38. www.globenewswire.com, 39. www.globenewswire.com, 40. www.marketbeat.com
