China’s Kuaishou slumps as analysts flag growth pressure despite strong results

Shares of Chinese short-video platform Kuaishou fell more than 13 per cent to HK$45.96 by midday in Hong Kong on Thursday, a day after reporting strong sales growth, as analysts warned that its core advertising and live-streaming businesses could face mounting pressure this year.

The sharp decline reflected investor concerns over a cautious growth outlook for the Beijing-based firm, compounded by its heavy spending on artificial intelligence, according to Zhang Xueru, an analyst at investment consultancy 86Research.

“Kuaishou’s revenue growth is expected to slow notably, while heavier AI investment is pressuring margins, leading to a market re-rating,” Zhang said.

Echoing that view, analysts at Chinese brokerage Huatai Securities attributed the subdued outlook to a combination of factors, including rising subsidies for the company’s e-commerce operations that could hurt advertising revenue growth.

Revenue for its live-streaming operations could also be hit by mainland China’s increasing scrutiny of the sector, according to Huatai Securities’ research note on Wednesday. It forecast Kuaishou’s 2026 revenue growth at 4.5 per cent, marking a “significant slowdown”.

The warnings came after Kuaishou reported fourth-quarter revenue of 39.57 billion yuan (US$5.7 billion) on Wednesday, a 12 per cent jump from a year earlier.