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Jam_invest's avatar

Very interesting indeed… and I believe the portion of the market cap covered by net cash even increases to closer to 40%, if we also include non-current deposits and financial assets.

Any thoughts on how you regard the prospects for Kuaishou relative to the other Chinese big tech names?

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The Great Wall Street's avatar

Exactly, I left out non-current assets to keep it simple, as I don’t value this company based on cash.

One reason the stock doesn’t get much attention is that Kuaishou primarily operates in China, with a small presence in Indonesia and Brazil, so it’s not well-known outside those regions. An investment bank report I read mentioned that very few international investors show interest in Kuaishou—mostly domestic investors do.

For example, look at X.com—it’s a company with a $25 billion market cap, and nobody’s talking about them. I actually like that.

The key question is Kuaishou’s competitive position against Douyin (ByteDance) and Tencent. Right now, they have a strong foothold in lower-tier cities, and their advancements in AI and advertising spend are promising. However, there’s always a risk that Tencent or ByteDance could target their market share, so I’m monitoring this closely. For now, they’re holding up well, gaining market share in e-commerce, and their ad spend is outperforming the industry average.

That said, this isn’t a ‘buy and forget’ situation—it requires careful, ongoing monitoring.

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mendo's avatar

what were their issues with Xinba

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