Kingsoft Cloud Holdings Ltd (KC) saw its stock price plummet 8.14% in early trading on Wednesday following the release of its first-quarter 2025 financial results. The significant drop came as the company's revenue fell short of analyst expectations, despite showing year-over-year growth.

The cloud service provider reported a net loss of 0.08 Chinese Renminbi per share for the quarter. While this represents a slight improvement from the 0.10 Renminbi loss per share in the same period last year, it failed to impress investors. More critically, Kingsoft Cloud's revenue of 1.97 billion Chinese Renminbi ($271.5 million), although up 10.9% from 1.78 billion Renminbi year-over-year, missed the average analyst estimate of 2.20 billion Renminbi.

Despite some positive aspects in the report, such as the company's growing AI-related business and improved adjusted EBITDA, the market reaction was decidedly negative. The revenue miss, combined with ongoing profitability challenges in the competitive cloud computing market, appears to have overshadowed the company's progress in other areas. As trading continues, investors and analysts will likely scrutinize the full earnings report for more details on Kingsoft Cloud's growth strategies and outlook in the evolving cloud services landscape.