Kuaishou Slumps as Spending Spree Drives Losses
- Its user numbers are on the wane though advertising surged
- Kuaishou is now seeking to expand its overseas footprint
Kuaishou Technology advertisements at a subway station in Beijing, China.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
Kuaishou Technology tumbled the most in nearly three weeks after reporting a wider-than-expected loss as the short-video giant increased spending to retain users.
The stock sank as much as 12.5% in early trading Thursday, the most since Aug. 6. Monthly and daily active users slid from the previous quarter and its net loss of 7 billion yuan ($1 billion) exceeded the 6.25 billion yuan projected, even as sales rose a better-than-expected 49% to 19.1 billion yuan for the three months ended June.