MOGU's AI Venture: A Risky Move Amidst Declining Revenue and Negative Margins

MOGU Inc's subsidiary has acquired a minority stake in a Chinese AI infrastructure technology company, marking a strategic move into technology. However, the company faces significant financial challenges, including declining revenue and negative margins. Valuation metrics suggest the stock is overvalued, with a low Piotroski F-Score indicating operational difficulties. The company operates in the consumer cyclical sector and faces sector-specific risks, including volatility and high beta.