# Cheng Yixiao

Kuaishou’s Paradox: Record Profits and a Desperate AI Pivot Fail to Reassure Markets

Despite reporting record profits, Kuaishou faces a crisis of confidence as its e-commerce growth slows and user acquisition hits a ceiling. The company's massive 260 billion RMB gamble on generative AI has so far failed to convince investors, who are wary of high costs and stiff competition from ByteDance.