Movement Alert|Kingsoft Cloud Falls 5.11% in Regular Trading, Q1 Loss Widens as Sector Weakness Intensifies Selling Pressure

Market Focus06-11

On June 11, Kingsoft Cloud fell 5.11% in regular trading, trading at HKD 5.59/share, with trading volume of HKD 189 million, extending its recent downtrend.

On the news front, the company's Q1 earnings report revealed a widening net loss of RMB 344 million, representing an 8.7% year-over-year increase in losses. Adjusted gross margin dropped sharply from 17.1% in the prior quarter to 13.0%, primarily driven by a 116.4% year-over-year surge in depreciation costs associated with the expansion of its AI-powered cloud computing business. The aggressive capital expenditure on intelligent computing infrastructure has significantly pressured short-term profitability.

Additionally, the Internet Services and Infrastructure sector saw broad-based weakness, with GDS-SW down 8.14%, Sunevision down 3.01%, and Cloud Factory down 2.99%, creating sector-wide drag that amplified selling pressure on individual names including Kingsoft Cloud.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment