Down 90% in 5 Years, This Chinese Tech Stock Is in Serious Trouble
Cheetah Mobile (NYSE: CMCM), a Chinese maker of mobile apps and games, lost 90% of its value over the past five years as its revenue and earnings plummeted. Its recent first-quarter report also didn't inspire much confidence in a near-term recovery.
Cheetah's revenue fell 51% annually to 528.1 million yuan ($74.6 million) during the quarter. It posted an adjusted net loss of 97.7 million yuan ($13.8 million), or $0.10 per ADS, compared to a profit of 33.8 million yuan a year ago.
Cheetah expects its revenue to decline another 60%-65% annually in the second quarter, but it didn't offer any bottom-line guidance. Those bleak numbers indicate the company is still in serious trouble, so investors should steer clear of its battered stock.
Source Fool.com
