KUAISHOU-W (01024.HK)'s loss is predicted to further widen on the increasing marketing and R&D expenses, with its stock price forecast to remain volatile in near-term as its rival "Douyin" continues to outperform the company in terms of the number of DAUs, reported HSBC Global Research.
HSBC Global Research favors KUAISHOU-W's advertising and e-commerce businesses and expects the adjustment on revenue mix to improve the GPM. HSBC kept KUAISHOU-W at Buy with its target price being reduced from $350 to $200 due to the delay in the forecast profit turnaround to 2023 from 2022 caused by the limited room for monetization in near-term and declining live-streaming revenue.
HSBC Global Research favors KUAISHOU-W's advertising and e-commerce businesses and expects the adjustment on revenue mix to improve the GPM. HSBC kept KUAISHOU-W at Buy with its target price being reduced from $350 to $200 due to the delay in the forecast profit turnaround to 2023 from 2022 caused by the limited room for monetization in near-term and declining live-streaming revenue.