Kingsoft Cloud Rises 1.55% as Bearish Signals Mount

Market Snapshot

Takeaway: The technical outlook for Kingsoft Cloud (KC.O) is weak, with a recent price rise of 1.55% contrasting sharply with a bearish signal-driven market. Investors are advised to avoid the stock due to the dominance of bearish indicators in the technical analysis.

News Highlights

Recent news events suggest no direct relevance to Kingsoft Cloud, but broader market dynamics include:

• Quebec removes trade barriers: Expected to boost interprovincial commerce and GDP by May 2025, which may indirectly support market sentiment.
• Delhi's new ice rink: Likely to boost local tourism and sports infrastructure, but no immediate link to Kingsoft Cloud.
• Chase Buchanan Wealth Management: Became the only global expat-focused CII International Professional Partner, highlighting growing interest in professional financial services—possibly a positive backdrop for the industry.

Analyst Views & Fundamentals

The recent analyst activity for Kingsoft Cloud shows a strong disparity. The only active analyst, Leo Chiang from Deutsche Bank, gave a "Strong Buy" rating on September 16, 2025. However, this prediction has a historical win rate of 0.0% and an average post-prediction return of -4.61%.

• Average rating score (simple mean): 5.00
• Weighted rating score (performance-weighted): 0.00
• Ratings consistency: Analyst ratings are divergent—only one active analyst with a "Strong Buy," versus the stock's weak technical signal.
• Price trend vs. expectations: The current price has risen by 1.55%, but this contrasts with the overall bearish technical and weak analyst signal, indicating a mismatch between price and fundamentals.

Fundamental factors (values and model scores):

• Inventory turnover ratio: 47.85 (score: 3.00)
• Net income-to-revenue margin: -16.59% (score: 2.00)
• Basic EPS YoY growth: 59.18% (score: 1.00)
• Diluted EPS YoY growth: 59.18% (score: 1.00)
• Net profit attributable to parent company YoY growth: 56.15% (score: 1.00)
• Net operating cash flow / total liabilities: 14.85% (score: 1.00)
• Asset-to-market value ratio: -49.60% (score: 2.00)
• Cash-to-market value ratio: 79.73% (score: 2.00)

While some key performance metrics like EPS growth appear strong, the negative net income-to-revenue and asset ratios signal underlying structural pressures.

Money-Flow Trends

Money flow for Kingsoft Cloud shows a negative overall trend, with large and extra-large investors contributing to the bearish sentiment.

• Big-money flow (Large/Extra-large): Both categories show a negative trend and a 49.50% inflow ratio.
• Small investor flow: Positive trend with a 51.06% inflow ratio, suggesting retail interest remains cautiously optimistic.

This suggests retail investors may still be looking for entry points, but big money is exiting or staying cautious. The fund flow score is 7.78 (good), reflecting a balanced but negative trend overall.

Key Technical Signals

Technical analysis of Kingsoft Cloud highlights a number of bearish signals:

• Long Lower Shadow: Score of 1.00 (internal diagnostic score), indicating bearish strength in a candlestick pattern typically seen before a drop.
• RSI Overbought: Score of 1.00 (internal diagnostic score), warning that the stock has risen beyond a healthy level.
• Marubozu White: Score of 1.00 (internal diagnostic score), a bearish reversal pattern seen recently on February 6 and February 2, 2026.
• MACD Death Cross: Score of 2.57 (internal diagnostic score), a neutral-to-bearish signal seen on February 4, 2026.

Key insights include:

• 4 bearish indicators vs. 0 bullish
• Weak technical signal state
• High risk of price decline

These bearish patterns, combined with the lack of positive momentum, suggest that the stock may face further downward pressure in the short to medium term.

Conclusion

Kingsoft Cloud (KC.O) is facing a bearish technical outlook and mixed fundamentals. While some growth metrics like earnings per share are impressive, the negative net income margin and bearish technical signals suggest caution. With a technical score of 1.39 and a fundamental score of 2.52, the stock appears overextended and vulnerable to correction.

Actionable takeaway: Consider avoiding new positions or waiting for a pullback. Investors should monitor technical signals and earnings for any signs of reversal.