Why Kingsoft Cloud Is Down More Than 40% Today
Shares of Chinese cloud computing service provider Kingsoft Cloud Holdings (NASDAQ: KC) are lower by 43.7% as of 11:36 a.m. ET on Monday in response to a downgrade from an analyst at J.P. Morgan. The sell-off, however, merely extends what's become a long-lived, steep pullback.
It's not exactly the surprise of the century. Kingsoft had already been on the receiving end of several downgrades since September of last year, driving the stock down 93% between last February's peak and Friday's close. Monday's 32% drubbing only extends that losing streak and, incredibly, isn't the worst single day shares have suffered of late.
The specifics: A J.P. Morgan analyst lowered his view of this cloud computing outfit from neutral to underweight, cutting its price target from $8 per share to $3.50. Still, that target is above Kingsoft's current price near $2.75.
Source Fool.com
