Why Shares of Cheetah Mobile Tumbled Today

Shares of Cheetah Mobile (NYSE: CMCM) slumped on Tuesday after the mobile app company announced its second-quarter results. The company missed analyst estimates for both revenue and earnings, sending the stock down about 17% by 12:30 p.m. EDT.

Cheetah Mobile reported second-quarter revenue of $177.2 million, up 14.8% year over year and about $2.4 million below the average analyst estimate. Utility products and related services generated $121 million of revenue, down 13.3% year over year. Mobile entertainment revenue soared 270.5% year over year to $54.7 million, driven by broadcasting revenue from Live.me and the mobile game portfolio.

Image source: Cheetah Mobile.http://www.cmcm.com/images/share/cheetah-mobile-share.jpg

Source: Fool.com