--- title: "Kuaishou Plunges After Earnings Report: What's the Market Worried About?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39543843.md" description: "After the release of the 2025 financial report, Kuaishou's stock price fell by more than 10% in a single day. On the surface, this report is not a "bomb"—revenue of 39.568 billion yuan slightly exceeded expectations, and adjusted net profit of 5.463 billion yuan met expectations. So, where exactly does the market's concern come from? Synthesizing information from various parties, the market's anxiety mainly focuses on two levels: first, whether the trend of slowing growth has been established, and second, whether the squeeze on short-term profits from AI investment can be absorbed. Let's break down these two issues. 1) The overall revenue growth rate is indeed declining, but the performance of related businesses is different..." datetime: "2026-03-26T11:02:50.000Z" locales: - [en](https://longbridge.com/en/topics/39543843.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39543843.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39543843.md) author: "[仝志斌](https://longbridge.com/en/profiles/10247393.md)" --- # Kuaishou Plunges After Earnings Report: What's the Market Worried About? After the release of its 2025 financial report, Kuaishou's stock price fell more than 10% in a single day. On the surface, this report was not a "bomb"—revenue of 39.568 billion yuan slightly exceeded expectations, and adjusted net profit of 5.463 billion yuan met expectations. So, where exactly are the market's concerns coming from? Combining information from various sources, market anxiety mainly focuses on two levels: first, whether the trend of slowing growth has been established; second, whether the squeeze on short-term profits from AI investments can be absorbed. Let's break down these two issues. 1) The overall revenue growth rate is indeed declining, but the performance of related businesses is different. For example, online marketing revenue (advertising revenue) grew 14.5% year-on-year, exceeding the 12.9% year-on-year growth of GMV. This is extremely rare in Kuaishou's history. Simply put, advertising revenue is beginning to gradually break free from excessive reliance on e-commerce, and the proportion of external circulation on the platform is increasing. Kuaishou is accelerating its transition from an e-commerce platform to a traffic company. I have consistently emphasized this perspective in the past, and it is now gradually being realized. Kuaishou's total revenue grew 12.5% year-on-year in 2025, down from the previous growth rate of over 15%. However, a detailed breakdown shows significant differences in the performance of different businesses: 2) Affected by a series of factors including the high base in 2024 (State Subsidies), total retail sales growth in 2025 was relatively weak. A typical example is the year-on-year growth of total retail sales in December dropping to 0.9%. Therefore, looking at Kuaishou's GMV growth rate alone, it is indeed declining. But if compared with the overall market and similar companies, Kuaishou's growth rate should be within an ideal range. The short-term decline in growth rate is not a problem unique to this company. The current growth advantage over the market means that once the external environment improves, Kuaishou is expected to gain more bargaining chips. 3) The AI era has arrived. Current investments are to defend its moat in the future. Kling can only support Kuaishou's second growth curve in the medium to short term. In other words, Kuaishou's short video platform is Kling's natural "reserve revenue," providing it with rich revenue scenarios. The short-term investment should be worthwhile. 4) From a market qualitative perspective, Kuaishou's current operations are increasingly leaning towards value stocks (pursuing profits, distributing dividends, and seeking shareholder returns). However, at this time, external liquidity shocks are quite severe (geopolitics leading to global liquidity tightening). Therefore, the company's strategy and external liquidity shocks have collided, causing short-term confusion in market pricing. The turbulence in the Hang Seng Tech Index over the past month is also due to this reason. Once the external environment improves, it is these types of companies that will rebound first. The performance of the Hang Seng Tech Index over the past few years has repeatedly verified this. Currently, there are many "emotional" factors in the market and public opinion regarding Kuaishou's pricing. Future market pricing will gradually return to rationality. Overall, the problems Kuaishou currently faces are more about the normal growing pains of a growth transition period and the temporary suppression from the external environment, rather than a fundamental breakdown in its underlying business logic. Market concerns about slowing growth and doubts about AI investments have been relatively fully reflected in the current stock price. Short-term stock price fluctuations are often the result of the combined effects of information, sentiment, and liquidity. For investors, the key is to distinguish between short-term disturbances and long-term trends. Kuaishou's business foundation remains solid, AI commercialization is already being realized, and its valuation is at a historical low. As for when the market will reprice it, that depends on the evolution of the external environment and the effectiveness of the company's subsequent expectation management. $KUAISHOU-W(01024.HK) ### Related Stocks - [STECH.HK](https://longbridge.com/en/quote/STECH.HK.md) - [07552.HK](https://longbridge.com/en/quote/07552.HK.md) - [03067.HK](https://longbridge.com/en/quote/03067.HK.md) - [03032.HK](https://longbridge.com/en/quote/03032.HK.md) - [07226.HK](https://longbridge.com/en/quote/07226.HK.md) - [01024.HK](https://longbridge.com/en/quote/01024.HK.md) - [03033.HK](https://longbridge.com/en/quote/03033.HK.md) - [03088.HK](https://longbridge.com/en/quote/03088.HK.md) - [159742.CN](https://longbridge.com/en/quote/159742.CN.md) - [513130.CN](https://longbridge.com/en/quote/513130.CN.md) - [81024.HK](https://longbridge.com/en/quote/81024.HK.md)