Citibank: Kuaishou Technology's advertising business may face headwinds in the second half of the year

According to a report by Citi, Kwai's advertising business may face resistance in the second half of the year, and the company's advertising growth expectations for the second half of the year have been lowered from nearly 20% to 13%. The unexpected tightening of online payment policies in Brazil has affected local companies' advertising spending. Chinese food delivery platforms have also reduced their marketing expenses on Kwai's short video app, as their price wars have led to an increase in user traffic. However, Citi expects that Kwai's self-developed AI video generation tool Keling's performance will be better. After Keling recorded revenue of over 250 million yuan in the second quarter, Citi raised its revenue forecast for 2025 to 125 million US dollars. Citi believes that if the momentum in the second half of the year is stronger than expected, there may be room for revenue growth.