TikTok Rival stock slips amid US app removal and video platform criticism

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Shares of Kuaishou Technology, owner of a popular Chinese short film platform that competes with ByteDance Ltd., fell 15% on Thursday after the company removed a US app and the industry in which it operates was criticized by state media.

Kuaishou, which means “quick hand” in Chinese, slipped to a new closing low, crystallizing a 70% decline since its first trading day and ending 22.5% below its public offering price initial. Shares of Tencent Holdings Ltd., which owns a large stake in the company, fell nearly 4% on Thursday to their lowest level in more than a year. Kuaishou shares fell another 9% on Friday morning in Hong Kong, after a six-month lock-in period expired for many of the company’s major shareholders, allowing them to sell part of their stakes.

Beijing-based Kuaishou registered in February with great fanfare after raising $ 5.4 billion from global investors. The shares initially climbed, taking the company’s market cap to over $ 220 billion in a matter of days. It had fallen to around $ 48 billion as of Thursday, according to FactSet.

Kuaishou recently removed a video sharing app called Zynn from U.S. app stores and informed users that Zynn’s services would be terminated soon. In response to a question, a company spokesperson said service would be halted by August 20 and called the move a “normal operating adjustment” that would not affect the company’s global strategy. ‘company.

Zynn was deployed in May 2020 and was a rival to ByteDance’s hugely popular TikTok app. It sparked controversy last year after some netizens questioned Zynn’s offers to pay people to invite friends to join the platform.


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