Cheetah Mobile (NYSE:CMCM) news for Friday includes a Google app ban taking a bite out of CMCM stock.
A Cheetah Mobile new release reveals that the company is dealing with Google to lift a ban on its apps. This ban sees the company losing access to its Google Play Store, Google AdMob and Google AdManager accounts.
Cheetah Mobile notes that the ban went into effect on Thursday. The reason given for the ban was that some of the company’s apps don’t meet Google’s standards. CMCM says that it is working with Google to resolve the issue.
According to the Cheetah Mobile news release, this change could result in significant drops in revenue for the company. It points out that 22.60% of its total revenue from the first nine months of 2019 came from making use of Google services.
It’s worth pointing out that Cheetah Mobile may not be able to regain its Google accounts. The company says as much in an official press release. If this is the case, it would have a major effect on its 2020 revenue starting with February.
Here’s what a portion of the Cheetak Mobile new release says.
“Cheetah Mobile remains committed to upholding the high standards in the industry and complying with Google Play developer policies, GDPR, laws, and regulations. The Company’s priority has always been to protect the interests of its users and enhance the user experience.”
CMCM stock was down 17.08% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.