Qunabox Group (HKG:917) saw its stock price plummet by 5.04% during Friday's intraday trading, continuing a downward trend that has plagued the company in recent weeks. This latest drop comes on the heels of a significant 25% decline in the stock's value over the past 30 days, erasing a substantial portion of the gains made earlier in the year.

The recent selloff appears to be driven by a combination of factors. Investors may be engaging in profit-taking following the stock's impressive 96% gain over the past year. Additionally, concerns about the company's high valuation have likely contributed to the downward pressure. Qunabox Group currently trades at a price-to-sales (P/S) ratio of 17.5x, which is significantly higher than the industry median of around 1.1x for the Hong Kong Media sector.

Despite the recent stock price decline, Qunabox Group has demonstrated strong financial performance. The company reported a 33% increase in revenue last year and an impressive 167% growth over the past three years. This robust revenue expansion has likely been a key factor in supporting the stock's high valuation. However, as the market reassesses the company's growth prospects and overall valuation, investors appear to be adopting a more cautious stance, leading to the current downward pressure on the stock price.