KE Holdings Inc. (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services in China, saw its stock plummet 6.10% in pre-market trading on Tuesday. This significant drop comes on the heels of two major announcements from the company: a final cash dividend declaration and the release of its fourth-quarter financial results.
The company announced a final cash dividend of approximately US$0.4 billion in aggregate, or US$0.36 per American Depositary Share (ADS). The dividend will be paid to shareholders of record as of April 9, 2025. While dividends are typically viewed positively, the market's reaction suggests investors may have expected a larger payout or are concerned about the company's use of cash.
Additionally, KE Holdings reported its fourth-quarter results, posting adjusted earnings per ADS of $0.16 and net revenues of $4.3 billion. The market's negative reaction could indicate that these figures fell short of investor expectations, potentially raising concerns about the company's growth trajectory or profitability in the competitive Chinese real estate market.
The pre-market plunge highlights the sensitivity of KE Holdings' stock to financial announcements and investor sentiment. As the market digests this information, it remains to be seen how the stock will perform during regular trading hours and in the coming days.
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