Kingsoft (03888.HK) saw its shares plunge 5.12% in Friday's trading session following the release of disappointing first-quarter earnings results. The Chinese software and cloud services provider reported figures that fell short of analyst expectations, prompting a sell-off in the stock.
According to the earnings report, Kingsoft Cloud Holdings Ltd, a key subsidiary of Kingsoft, posted a quarterly adjusted loss of 77 fen per share for the quarter ended March 31. This loss was significantly higher than the 47 fen per share loss anticipated by analysts. While the company's revenue rose 10.9% to CNY1.97 billion compared to the same period last year, it still fell short of the CNY2.24 billion expected by Wall Street.
The market's negative reaction to these results highlights investors' concerns about Kingsoft's profitability and growth trajectory. Despite the current setback, it's worth noting that analysts maintain a generally positive outlook on the stock, with an average rating of "buy" and a median 12-month price target of $17.65. However, the company will need to address its performance issues to regain investor confidence and reverse the current downward trend in its stock price.
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