Lates News

Morningstar analyst Ivan Su's report stated that in the long term, investment in AI by Kuaishou Technology may further benefit its advertising revenue. Although Kuaishou Technology exceeded expectations in the second quarter, its better-than-expected performance was mainly driven by e-commerce and its AI video generation tools, which are businesses with low long-term visibility. These AI investments drove second-quarter advertising revenue to achieve low single-digit growth. Morningstar stated "Although this pace lags behind Tencent, we still believe there is a lot of room for continuous improvement in the future." Kuaishou Technology's distribution of a special dividend of 2 billion Hong Kong dollars is a positive signal reflecting management's intention to return excess cash to shareholders and pointing out that the further upside in Kuaishou Technology's stock price should come from the commercialization of its Lingtui tool, which is still in the early stages.