Why Xunlei Limited Stock Just Jumped 20%

Shares of Chinese cloud computing provider Xunlei Limited (NASDAQ: XNET) are up 20% as of Noon EST Thursday. In contrast to the stock's sudden jump nearly one month ago, this time there appears to be at least a nominal reason for the pop: earnings.

Xunlei reported its financial results for fiscal Q3 2017 Thursday morning. Sales for the quarter grew 15.6% year over year to $47.3 million. Gross margins, however, declined steeply, falling 920 basis points to just 38.7%. At the same time, Xunlei's operating expenses exploded -- 61% higher to $48.7 million.

Thus, Xunlei actually spent more on operating costs than it collected in revenue for the quarter.

Source: Fool.com