TikTok Rival’s Inventory Slides Amid Removing of U.S. App, Criticism of Video Platforms
The shares of Kuaishou Technology, the owner of a popular Chinese short video platform that has been partnered with ByteDance Ltd.
Kuaishou, which means “quick hand” in Chinese, slid to a new closing low, declining 70% since its first day of trading and ending 22.5% below its market price. Tencent Holdings Ltd. shares, which have a sizable stake in the company, fell nearly 4% on Thursday to their lowest closing price in more than a year. Kuaishou shares fell another 9% in Hong Kong trading Friday morning after a six-month lock-up period expired for many of the company’s major shareholders, allowing them to sell some of their shares.
Beijing-headquartered Kuaishou was listed to a great roar in February after raising $ 5.4 billion from global investors. Shares initially rose, pushing the company’s market cap to over $ 220 billion in a matter of days. It was about $ 48 billion on Thursday, according to FactSet.
Kuaishou recently removed a video sharing app called Zynn from US app stores, informing users that Zynn’s services will soon be discontinued. In response to a query, a company spokesperson said the service will be suspended until August 20, calling the move a “normal operational adjustment” that would not affect the company’s global strategy.
Launched in May 2020, Zynn was a rival to the hugely popular privately owned TikTok app by ByteDance. It sparked controversy last year after some internet users questioned Zynn’s offers to pay people to invite friends to join the platform.