--- title: "China’s Kuaishou slumps as analysts flag growth pressure despite strong results" type: "News" locale: "en" url: "https://longbridge.com/en/news/280610421.md" description: "Shares of Kuaishou fell over 13% to HK$45.96 despite reporting strong Q4 revenue growth of 12% year-on-year, raising concerns about its advertising and live-streaming businesses. Analysts predict a slowdown in revenue growth due to heavy AI investments and rising e-commerce subsidies. Huatai Securities forecasts Kuaishou's 2026 revenue growth at 4.5%. The company plans to increase capital expenditure to 26 billion yuan this year to support AI projects, with CEO Cheng Yixiao expecting revenue from Kling AI to double." datetime: "2026-03-26T10:25:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280610421.md) - [en](https://longbridge.com/en/news/280610421.md) - [zh-HK](https://longbridge.com/zh-HK/news/280610421.md) --- # 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. On the earnings call, co-founder and CEO Cheng Yixiao highlighted AI – including computing resources, AI agents and foundational AI models – as one of the key investment areas for the company. Kuaishou plans to increase its capital expenditure to 26 billion yuan this year, more than 70 per cent higher than last year’s 15 billion yuan, to build out projects including data and computing centres supporting its flagship Kling AI and other foundational AI models. Kling AI generated 340 million yuan in revenue in the fourth quarter, and Cheng said he expected that figure to double this year. The company’s shares closed down 14 per cent at HK$45.60. ### Related Stocks - [520670.CN](https://longbridge.com/en/quote/520670.CN.md) - [517770.CN](https://longbridge.com/en/quote/517770.CN.md) - [513330.CN](https://longbridge.com/en/quote/513330.CN.md) - [513770.CN](https://longbridge.com/en/quote/513770.CN.md) - [159805.CN](https://longbridge.com/en/quote/159805.CN.md) - [03033.HK](https://longbridge.com/en/quote/03033.HK.md) - [01024.HK](https://longbridge.com/en/quote/01024.HK.md) ## Related News & Research - [06:07 ETStandardC Launches AI Platform for Financial Institutions, Where Customer PII Is Never Shared With AI Models (Patent Pending)](https://longbridge.com/en/news/286892045.md) - [11:30 ETDageno Launches Issues Panel and High-volume Prompt Miner to Help Growing Brands Turn AI Search Signals Into Growth Tasks](https://longbridge.com/en/news/286939643.md) - [How AI is changing your investing game](https://longbridge.com/en/news/287144820.md) - [Hippocratic AI Expands Life Sciences Leadership Team as Pharma and Medtech Demand for Voice AI Agents Accelerates](https://longbridge.com/en/news/287107640.md) - [Sharon AI Appoints Mr. Andrew Penn as Chairman of the Board of Directors | SHAZ Stock News](https://longbridge.com/en/news/287210261.md)