Cheetah Stock Runs Into Brick Wall
Shares continue to tumble on Google delisting
The stock in Cheetah Mobile Inc. (NYSE: CMCM) continued to tumble and hit a historic low on Friday after the company confirmed that it has been delisted from the Google Play Store. In early trading on Friday, Cheetah's stock plummeted nearly 18% to $2.97 per American depositary share.
In a statement today, the Beijing-based mobile internet company said its Google Play Store, Google AdMob and Google AdManager accounts were disabled on Thursday. The ban comes as Cheetah's apps did not comply with Google policies, resulting in invalid traffic. Reportedly on Thursday, Google banned the apps, because they violated its disruptive ads and disallowed interstitial policies.
On Thursday, Cheetah watched more than 45 apps disappear from the tech giants' android store.
Today's trading at $2.97 per share marked an all-time low for Cheetah since the company went public in May 2014. Since January 2018, when Cheetah hit a high of $18.18 per share, the company's stock has tanked more than 80%.
In the nine months through September, Cheetah said it generated 23% of its revenues from Google. In the third quarter, Cheetah's revenue slipped to $128.7 million, down 32% year-over-year.
Cheetah remains in "continuous" communication with Google and plans to appeal the decision.