By Yifan Wang
Shares of Chinese short-video platform Kuaishou Technology dived in morning trade, after the company posted a sharply wider net loss for 2020.
The stock was down as much as 11% at HK$268 by the midday trading break.
Kuaishou late Tuesday reported a net loss of 116.64 billion yuan (US$17.90 billion) for last year, significantly higher than the CNY19.65 billion loss in 2019, partly dragged by its much heavier marketing spend.
The company’s revenue, which rose 50%, was in line with market expectations, while gross-profit margin, a measure often watched for fast-growing startups that haven’t yet turned a profit, also improved.
The earnings marked Kuaishou’s first annual financial release after the tech company raised $5.4 billion from its initial public offering in January–the world’s largest listing in over a year.
Despite Wednesday’s slump, Kuaishou shares are still trading at more than twice the IPO price, and a market capitalization of over $144 billion.
Write to Yifan Wang at [email protected]
(END) Dow Jones Newswires
March 24, 2021 00:33 ET (04:33 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
