Yahoo Finance TikTok Rival Kuaishou Bounces Back in Blistering Week-Long Rally
(Bloomberg) -- The biggest casualty of this year’s rout in Chinese technology stocks has rebounded more than 30% over the past week, leading a recovery in the sector thanks to cheap valuations and bets that the worst of Beijing’s regulatory crackdown is over.
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Kuaishou Technology, the TikTok rival that runs a video streaming app on the mainland, has surged about four times more than the Hang Seng Tech Index since Oct. 18.
The stock advanced 0.2% on Tuesday, putting it about 6% below its February initial public offer price. This comes after a wild ride that saw Kuaishou more than double within weeks of listing in Hong Kong before plunging 84% to an August low -- the widest peak-to-trough slump among global IPOs this year.
“For Kuaishou, its advertising sales growth trajectory remains quite encouraging even amid the regulatory crackdown,” said Bloomberg Intelligence analyst Matthew Kanterman. This looks to be driving some investors to call the bottom for the shares, he added.
Still, Kanterman cautioned that Kuaishou and the broader sector will remain vulnerable to the risk of negative headlines for some time to come.
(Updates with closing prices in third paragraph)
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