KUAISHOU-W (01024) shares are soaring over 5% in early trading on Monday, continuing its strong performance following the release of its better-than-expected second-quarter results. The stock has now accumulated gains of over 8% across two consecutive trading days, reflecting growing investor confidence in the company's outlook.
The robust performance stems from KUAISHOU-W's impressive Q2 results announced on August 21, which exceeded market expectations across key metrics. Notably, the company's core financial indicators, including profit levels, Kling business revenue, and e-commerce GMV, all surpassed analysts' forecasts. In response, 11 major financial institutions, including Goldman Sachs, Morgan Stanley, and Jefferies, have collectively raised their target prices for the stock.
Adding to investor optimism, KUAISHOU-W announced a special dividend distribution, signaling management's confidence in the company's future earnings prospects and abundant cash flow. Moreover, despite increased capital expenditure in artificial intelligence, the company has maintained stable overall profit margins. Analysts highlight that KUAISHOU-W's ongoing AI investments are likely to further benefit its ad revenue in the long run, particularly through its AI video-generation tool, Kling. As the market recognizes the growing commercialization potential in segments like Kling and e-commerce, KUAISHOU-W's medium to long-term growth prospects appear increasingly promising.