Cheetah Mobile stock is ripping higher after the company reported awesome earnings.
Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “Our second quarter revenues exceeded the high end of our revenue guidance for the quarter. Notably, this revenue growth was driven by our mobile games and AI-related businesses. During the quarter, revenues from our mobile games business increased by 109% year over year while revenues from AI and other businesses increased by 236% year over year. These robust growth performances are a testament to our continuous product enhancement and innovation. By leveraging our massive user base and cash generated from our utility product business, we have increasingly streamlined our operations to bolster these two growing business segments. Looking ahead, we will continue to invest heavily in our AI-related business to build our growth engine over the long-term in a new technological era.”
Mr. Vincent Jiang, Cheetah Mobile’s Chief Financial Officer, commented, “In the quarter, our utility products and related services continued to generate a solid profit of RMB121 million while losses from the mobile entertainment business continued to narrow. As of June 30, 2019, we had cash, cash equivalents, restricted cash, short-term investments of US$488 million, and long-term investments of US$287 million. Looking ahead, we are confident in our long-term growth prospects and believe that our strong cash generation capabilities in utilities products and related services and games, combined with our healthy cash balance, will enable us to continue expanding into the AI space through the integration of AI technology and innovative product design.”
BB triggered a buy alert a 6:49 AM (Pacific) at $3.71. The stock is up 12% from that price alert. Make sure you sign up to BB stocks to get price alerts like this that display right on the stock chart.
CMCM is a Chinese company and so it does not meet the minimum requirements for inclusion in the GST Portfolio at this time with the ongoing trade wars. However, readers may be able to time a quick swing trade in the stock.
Disclosure: I do not hold any position in CMCM stock.