Why Lizhi Stock Dropped 10% on Tuesday

Lizhi (NASDAQ: LIZI) shareholders lost ground to the market on Tuesday, with the stock dropping 10% by 3:15 p.m. EDT, according to data provided by S&P Global Market Intelligence. The audio platform specialist sank after reporting its latest earnings results.

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The Chinese tech producer revealed solid sales growth for the period that ended in late June. A 7% uptick in paying users, along with higher average spending, helped push revenue up 59%. Management highlighted other key wins in the second quarter, including a big boost in gross profit margin. "We are very pleased to continue our strong growth momentum," CEO Marco Lai said in a press release.

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Source Fool.com