Why Zhihu Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
Zhihu Inc. (NYSE:ZH) shares rose in premarket trading after reporting a 2.2% year-over-year increase in Q4 sales to $160.3 million, with average monthly active users reaching 99 million and monthly subscribing members up 9.2% to 14.2 million. Gross profit rose 7.1% to $94.8 million, and gross margin expanded to 59.1%. The company also reported a narrowed quarterly adjusted loss per ADS of $(0.02) and had $769.4 million in cash and equivalents. Additionally, Zhihu repurchased 26.3 million Class A ordinary shares for $58.5 million. Despite a 38% loss over the past year, ZH shares are up 3.79% to $0.74 in premarket trading. Investors can also gain exposure to ZH through the Matthews Emerging Markets Discovery Active ETF (NASDAQ:MEMS).
March 26, 2024 | 1:15 pm
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POSITIVE IMPACT
Matthews Emerging Markets Discovery Active ETF (MEMS) offers exposure to Zhihu Inc., which reported positive Q4 earnings, potentially impacting MEMS positively.
Given that MEMS offers exposure to Zhihu Inc., the positive earnings report from Zhihu could attract more investors to MEMS, potentially leading to a positive short-term impact on its price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Zhihu Inc. reported a year-over-year increase in Q4 sales, user growth, and an expanded gross margin, alongside a narrowed loss per ADS. Shares rose 3.79% to $0.74 in premarket trading.
The positive earnings report, showing growth in sales, users, and an improved gross margin, alongside a narrowed loss, likely contributed to the premarket stock price increase. The repurchase of shares also signals confidence in the company's future, supporting a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100