Kuaishou: Upgrade To Hold Amid Mixed Growth Outlook

2025-05-30 10:00:00 ET

Summary

• Kuaishou delivered a largely in-line quarter, with live-streaming revenue beating expectations and e-commerce growth decelerating amid macro headwinds.
• AI initiatives, particularly Kling 2.0, are gaining traction, but tech differentiation remains limited, and the revenue contribution is still modest.
• Merchant support and external marketing are driving engagement, yet competition and China’s weak macro backdrop continue to pressure margins and growth.
• Upgrade Kuaishou to HOLD from SELL, seeing limited downside; I prefer PDD and JD for better quality and growth prospects in China e-commerce.

Kuaishou ( KUASF ) (KSHTY) reported 1Q25 results with revenue and non-GAAP earnings slightly ahead of expectations due to a beat on livestreaming, while e-commerce and online marketing both came largely in line with consensus. Operating metrics continue to hold up with DAUs growing at 3.6% y/y to 408mn....

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