In response, Kuaishou continued its
Posted: Thu Dec 12, 2024 5:29 am
In response, Kuaishou continued its statement in the first quarter report, saying that they are committed to building a long-term sustainable live broadcast ecosystem. According to "Fun Business", Kuaishou has been strengthening the governance of live broadcast content in recent years, expanding live broadcast content and categories, and introducing high-quality unions and anchors.
E-commerce business has been an important focus of Kuaishou in recent years. The rapid growth of live e-commerce business is one of the main reasons for Kuaishou's turnaround, but the growth rate of Kuaishou's e-commerce is also slowing down. In the third quarter of 2024, the GMV of Kuaishou's e-commerce business was 334.2 billion yuan, a year-on-year increase of 15.1%; this growth rate is almost the same as Q2, and far lower than the growth rate of more than 20% or lithuania whatsapp number data 5 million 30% in previous quarters.
There are many reasons for the slowdown in Kuaishou's e-commerce growth, but more importantly, Kuaishou is facing fierce market competition and has not yet found new growth points to build up traffic advantages.
Overall, the slowdown in revenue growth and GMV performance that fell short of expectations have become the capital market's concerns about Kuaishou at this stage. Reflected in the stock price performance, the day after Kuaishou released its financial report, Kuaishou's stock price once fell by more than 12%; as of November 25, Kuaishou closed at HK$46.35 per share, with a cumulative decline of about 16% this year; it has fallen by nearly 90% from its highest point after listing, and its market value has evaporated by about HK$1.55 trillion.
Image source: Screenshot of Baidu Stock Market
Bloomberg Industry Research analyst Robert Lea and others commented that Kuaishou's profit margin in the third quarter was lower than expected. Under the pressure of rising profit margins, the company's general earnings forecasts for the fourth quarter and 2025 are at risk of being revised downward.
However, at present, Kuaishou has a response plan. On November 25, at Kuaishou's 2024 third quarter investor conference call, Kuaishou CEO Cheng Yixiao believed that as the penetration rate of short videos among the Internet population gradually increases, it will become more difficult to acquire new users. The company will achieve traffic growth through three specific strategies:
First, in terms of traffic distribution, we will continue to promote the upgrade of brand mechanisms and promote community development by supporting high-quality content; second, in terms of product optimization, the company will continue to consolidate its moat in social and private domains, increase interactive gameplay, and enhance user experience; third, in terms of content operation, we will create high-quality group content around users and achieve user breakthrough through influential major events.
On the one hand, there is marketing promotion that continues to "burn money", and on the other hand, there is investment in emerging businesses such as e-commerce, AI, and short dramas. Under the increasingly fierce industry competition, Kuaishou can only "achieve healthy and high-quality growth through good content, good products and a reasonable traffic mechanism" and realize the healthy and sustainable development of the platform if it focuses on users, strikes a balance between content and business, and finds a balance between traffic algorithm mechanism and social responsibility.
E-commerce business has been an important focus of Kuaishou in recent years. The rapid growth of live e-commerce business is one of the main reasons for Kuaishou's turnaround, but the growth rate of Kuaishou's e-commerce is also slowing down. In the third quarter of 2024, the GMV of Kuaishou's e-commerce business was 334.2 billion yuan, a year-on-year increase of 15.1%; this growth rate is almost the same as Q2, and far lower than the growth rate of more than 20% or lithuania whatsapp number data 5 million 30% in previous quarters.
There are many reasons for the slowdown in Kuaishou's e-commerce growth, but more importantly, Kuaishou is facing fierce market competition and has not yet found new growth points to build up traffic advantages.
Overall, the slowdown in revenue growth and GMV performance that fell short of expectations have become the capital market's concerns about Kuaishou at this stage. Reflected in the stock price performance, the day after Kuaishou released its financial report, Kuaishou's stock price once fell by more than 12%; as of November 25, Kuaishou closed at HK$46.35 per share, with a cumulative decline of about 16% this year; it has fallen by nearly 90% from its highest point after listing, and its market value has evaporated by about HK$1.55 trillion.
Image source: Screenshot of Baidu Stock Market
Bloomberg Industry Research analyst Robert Lea and others commented that Kuaishou's profit margin in the third quarter was lower than expected. Under the pressure of rising profit margins, the company's general earnings forecasts for the fourth quarter and 2025 are at risk of being revised downward.
However, at present, Kuaishou has a response plan. On November 25, at Kuaishou's 2024 third quarter investor conference call, Kuaishou CEO Cheng Yixiao believed that as the penetration rate of short videos among the Internet population gradually increases, it will become more difficult to acquire new users. The company will achieve traffic growth through three specific strategies:
First, in terms of traffic distribution, we will continue to promote the upgrade of brand mechanisms and promote community development by supporting high-quality content; second, in terms of product optimization, the company will continue to consolidate its moat in social and private domains, increase interactive gameplay, and enhance user experience; third, in terms of content operation, we will create high-quality group content around users and achieve user breakthrough through influential major events.
On the one hand, there is marketing promotion that continues to "burn money", and on the other hand, there is investment in emerging businesses such as e-commerce, AI, and short dramas. Under the increasingly fierce industry competition, Kuaishou can only "achieve healthy and high-quality growth through good content, good products and a reasonable traffic mechanism" and realize the healthy and sustainable development of the platform if it focuses on users, strikes a balance between content and business, and finds a balance between traffic algorithm mechanism and social responsibility.