Why Did Color Star Plunge 27.2% Amid Rebranding?

On August 20, 2025, Color Star experienced a significant drop of 27.2% in pre-market trading, marking a notable shift in its stock performance.

Color Star Technology, formerly known as Huitao Technology Co., Ltd., has announced a series of significant changes. The company will change its corporate name to Zeta Network Group and its stock ticker symbol from ADD to ZNB, effective August 22, 2025. This rebranding effort is part of a broader strategy to reposition the company in the market.

In addition to the name change, Color Star Technology has implemented a 25-for-1 reverse share split. This move is aimed at increasing the stock price and potentially attracting more investors by making the shares more valuable on a per-share basis. The reverse split is expected to take effect on the same date as the name change.

These strategic changes come as the company seeks to enhance its market presence and financial stability. The rebranding to Zeta Network Group and the reverse share split are part of a comprehensive plan to improve the company's overall performance and investor confidence.