Shares of KE Holdings Inc. (BEKE) were rising in the current market trading session on August 24, 2021, without any certain news. BEKE’s stock price saw a push of 13.87% to reach $18.92 a share at the time of this writing. The trading volume as of now was 13,843,824, higher than the average volume. The stock went high by 2.98% at the previous closing. Let’s deep dive to get more intuition of it.

What’s Happening?

KE Holdings Inc is the Chinese real estate platform that operates as an online and offline platform for housing transactions. There is no particular news or press release by KE Holdings to justify the bullish sentiment. No analysts’ upgrades or increased targeted per share price of the BEKE stock to support the rally. It seems that discussion among investors in social media platforms is making the BEKE stock price high in the stock market. Let’s discuss some previous events in this stock.

BEKE stock’s Q2,2021 Financial Results:

• BEKE stock reported net revenue of RMB24.2 billion in the second quarter of 2021. This represents a 20% increase from RMB20.1 billion in the same tenure of the previous year. The GTV growth of 22.2% as compared to the previous year’s same quarter is mainly attributable to this rise.
• The total cost of revenue for the BEKE stock reached RMB18.8 billion (US$2.9 billion) in the second quarter of 2021. This represents a 38.6% increase as compared to the same tenure of the previous year.
• The gross profit in the reported quarter for the BEKE stock was RMB5.3 billion as compared to RMB6.6 billion in Q2,2021. The gross margin for the stock was 22.1% in Q2,2021 while it was 32.5% in the same quarter of last year.
• The stock spent RMB4.2 billion for operating expenses in Q2,2021 while it spent RMB3.3 billion for operating expenses in Q2,2020.
• Net income and adjusted net income for BEKE stock were RMB1,116 million and RMB1,638 million in Q2,2021.
• By the end of the second quarter, BEKE stock had  RMB59.2 billion in cash, cash equivalents, and short-term investments.

Business Outlook of BEKE stock:

KE Holding has projected its revenue for the third quarter to be in the range of RMB14.5 billion and RMB15.5 billion. This means that revenue will decrease by 24.6% to 29.4% as compared to the same period of the previous year.

Conclusion:

BEKE stock is hot among investors despite the absence of any certain news related to it. Most Chinese stocks are under great pressure due to a crackdown by the Chinese government in different sectors. This is the reason that KE Holdings management has forecasted low revenue for the third quarter. Investors having long-term prospects must be aware of all facts and figures before making any decision.