Categories Technology

Chinese mobile internet firm Cheetah Mobile dips to record low

Cheetah Mobile (NYSE: CMCM) stock plunged to a record low of $3.43 on Thursday as investors remained concerned about the Chinese mobile internet firm’s future. The company faces certain challenges in growing revenue in the near-term as well as the plan to increase its investments in artificial intelligence could hurt the profitability in the near-term.

The company’s overseas business has been experiencing difficulties due to the recent global business environment as well as misleading statements on its business. This had made considerable damage including a pause in collaboration with certain business partners in the international market.

Cheetah Mobile is expected to take a few measures in the second half of 2019 for generating profit and cash flow from the utility product business and mobile entertainment business. The company plans to implement cost control, streamline and refine product lines, and dedicate more focus on AI business, which is still in the early stage of development.

Photo Courtesy: Cheetah Mobile / Facebook post

The main challenge that the company faces is its AI business showing meaningful revenue contribution. Investors also fear that the company will need more time in taking revenue contribution from AI business. Meanwhile, market analysts have remained on the sidelines and suggested a “hold” rating on the stock.

The company’s utility products include Clean Master, Security Master, Battery Doctor, Cheetah web Browser, CM mobile Browser, CM Launcher, Cheetah Keyboard, Photo Grid, CM Locker, Duba Anti-virus, and SafeWallet. Also, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. The products also include Cheetah Voicepod, Cheetah portable Translator, and Cheetah reception robot GreetBot.

For the first quarter, the company reported a 90% dip in earnings as disruptions to the overseas mobile utility business hurt revenues by 5%. Revenues from the mobile entertainment business grew by 42% driven by the growth of both mobile games business and LiveMe business.

Also read: comScore stock plunges to a record low

The company benefited from mobile games such as Bricks n Balls, Piano Tiles 2, Rolling Sky, and Dancing Line. In the first quarter of 2019, we also launched a number of casual games, which also contributed to the revenue growth, although their aggregate revenue contributions were still insignificant.

Shares of Cheetah Mobile opened lower on Thursday but changed course to the green territory on the NYSE. The stock has fallen over 66% in the past year and over 44% in the past three months.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top