Kuaishou-W stock plummeted 5.02% during intraday trading on Wednesday, extending losses from earlier in the session.

The sharp decline follows the company's recently released first-quarter financial results, which showed a significant year-over-year drop in profitability. Net profit fell 27% to RMB 2.905 billion, while adjusted net profit declined 26.3%. The company's gross margin also contracted from 54.6% to 51.2%, pressured by an 18.4% surge in bandwidth and server hosting costs as intensive AI investment continued.

Furthermore, the stock faced headwinds from broad weakness across the Interactive Media and Services sector, with major peers including Tencent, Meitu, Baidu, Bilibili, and Newborn Town all trading lower during the session.