Why Kingsoft Cloud Holdings Stock Was Vaulting Higher This Week
Chinese tech company Kingsoft Cloud Holdings (NASDAQ: KC) was in a cloud for much of this week. According to data compiled by S&P Global Market Intelligence, the company's American Depositary Receipts (ADRs) were rising at a 16% clip week to date as of Friday before market open. A general bullish move toward Chinese stocks is a major part of this, as is a modest but meaningful analyst price target bump.
China seems to be moving past -- or being pushed away from -- its strict zero-COVID regime into a less restrictive means of handling the coronavirus pandemic. This has given investors hope that the now-handcuffed national economy will be able to move more freely, benefiting the country's companies.
If they start to get back on their feet, those enterprises will theoretically have larger budgets for tech products and services. This, of course, would benefit domestic tech enterprises, of which Kingsoft is one of a great many.
Source Fool.com
