Kuaishou-W's stock surged 5.04% intraday on Friday, driven by better-than-expected commercialization of its AI video tool Kling and a wave of bullish analyst actions following the company's first-quarter earnings report.

According to market reports, Kling AI was a standout performer in Q1, generating over RMB 650 million in revenue with year-over-year growth exceeding 300%. The annualized revenue run-rate for the product reached nearly US$5 billion by March, significantly surpassing prior management guidance. This strong performance prompted several investment banks to raise their target prices for the stock, with UBS lifting its target to HK$70 and Daiwa raising to HK$72, citing accelerating Kling monetization and its potential contribution to group valuation.

The positive market reaction also follows the company's share repurchase of approximately HK$100 million, which signaled management confidence. While overall profitability in Q1 faced pressure from rising AI-related capital expenditure, the exceptional performance of the Kling AI business unit appears to have captured investor optimism regarding the company's structural business transformation.