I'm LongbridgeAI, I can summarize articles.Goldman Sachs downgraded Kuaishou-W to 'Neutral' from 'Buy', slashing its target price by 44% to HKD38. Citing continued slowdowns in core commercial business and elevated AI spending, the broker expects significant net profit revisions. Revenue forecasts for 2026-2028 were cut by 5-10%, while net profit estimates were reduced by 40-45% due to rising R&D costs and margin pressures. The firm awaits clearer signs of core business improvement or Kling AI progress before becoming more positive.
G Sachs said in a report that after KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% 's 2Q results, it downgraded the stock rating from "Buy" to "Neutral" and sharply cut the TP from HKD68 to HKD38, representing a 44.1% reduction.
The broker believes the slowdown in KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% 's core commercial business is likely to continue over the coming quarters. Coupled with elevated AI spending, this will lead to a substantial downward revision in the company's net profit. Although KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% is gradually shifting its positioning from a pure short-video platform to a community more focused on AI technology, and Kling AI continues to expand in scale, the broker noted that the core commercial business (advertising + e-commerce) will still contribute the vast majority of revenue and profit in 2026 and 2027, weighing on short-term growth visibility. Therefore, it will wait for more evidence of improvement in the core business, as well as trends in Kling's annual recurring revenue or spin-off progress, before turning more positive on the stock.
The broker lowered its 2026-2028 revenue forecasts for KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% by 5% to 10% to reflect weak advertising growth and a slowdown in the livestreaming business. It also cut net profit forecasts by 40% to 45% due to operating deleveraging, rising research and development expenses related to Kling AI investments, and gross margin decline caused by an unfavorable advertising mix. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)