Kingsoft Cloud (KC) is a cloud computing company that is based out of China. When looking at China stocks there aren’t many that I like at all, most of this comes down to the fact that I honestly don’t understand fully how the Chinese run business and it scares me a little bit. My father is a financial advisor and he’s told me since I was young he likes to take US stocks over Chinese if he has the ability to.
Kingsoft Cloud is enticing to me, it is one of the very few Chinese businesses to scale growth to billion-dollar revenue. In May of 2020 Kingsoft IPO’d at $17 a share, right now it’s hovering around $50 a share and has seen highs of over $75.
Kingsoft mainly provides cloud computing, storage, and cloud-related delivery products, when you look at the main clients most of them are Chinese but they service over 100 countries worldwide.
In cloud computing, they offer high-performance computing resources for all clientele. To add to this, they also offer cloud networks, databases, security, data storage, and Artificial Intelligence products. In the world of cloud computing and technology, Kingcloud almost offers it all.
Now it comes to the hard part, do you invest in China? There are a couple of reasons why investing in China doesn’t look so bad. Pointing out the obvious is for diversification purposes, having multiple countries is something that mitigates risk within your own personal portfolio. Another reason is in the first quarter of this year China’s 2021 GDP grew 18.3%. With more money being spent in the country that Kingsoft does the most business with can only be a good thing for Kingsoft.
Overall I really like Kingsoft, they have great numbers, and they are set up for great growth.