Kuaishou Technology’s Stock Price Plummets to 40.05 HKD, Marking a Significant 9.80% Drop

Kuaishou Technology (1024)

40.05 HKD -4.35 (-9.80%) Volume: 91.55M

Kuaishou Technology’s stock price is currently standing at 40.05 HKD, experiencing a significant drop of -9.80% in this trading session with a high trading volume of 91.55M, underlining a bearish trend with a year-to-date percentage change of -24.55%.

Latest developments on Kuaishou Technology

Kuaishou Technology shares experienced a drop today due to slower e-commerce growth in the second quarter, despite reporting a remarkable 167% surge in profit. The company announced its Q2 2024 unaudited financial results, showing a slowdown in revenue growth. This news comes amidst JD.com dragging down China tech shares following Walmart’s planned exit. Kuaishou Technology, known for its AI and e-commerce initiatives, has adjusted service fee caps in response to market conditions. Despite the stock price movement, the company continues to innovate, with Sora-like Kling generating over 10 million AI videos.

Kuaishou Technology on Smartkarma

Analysts on Smartkarma, like Ming Lu, have been bullish on Kuaishou Technology, with reports indicating significant margin improvements and stock upside potential. In the 2nd quarter of 2024, the company saw a 5 pp improvement in gross margin and a 7 pp improvement in operating margin year over year. Revenue also grew by 12%, with the main business up by 22%. Ming Lu set a stock upside of about 100% and recommended a buy.

Another analyst, Ying Pan, reiterated a buy rating on Kuaishou Technology, raising the target price to HK$83 thanks to the out-performance in the off-season, driven by Generative AI. The company’s strong revenue and income performance, fueled by GAI, led to the target price increase. Analysts believe in the company’s growth potential and its ability to deliver strong financial results, prompting a positive sentiment towards investing in Kuaishou Technology.

A look at Kuaishou Technology Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Kuaishou Technology has a positive long-term outlook. With high scores in Growth and Resilience, the company is positioned for strong expansion and has demonstrated the ability to withstand market challenges. Additionally, a solid Momentum score indicates that Kuaishou Technology is gaining traction in the industry. However, lower scores in Value and Dividend suggest that investors may need to carefully consider the company’s financial health and potential returns.

Kuaishou Technology, operating as a content community and social platform, focuses on providing users with a platform to create, upload, and watch short videos on mobile devices. With a global reach, the company offers its services to users worldwide. Despite mixed scores in different areas, Kuaishou Technology‘s overall outlook remains promising, especially in terms of growth potential and resilience in the market.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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