Shares of Aurora Mobile (NASDAQ:JG) stock are taking off on Friday after news of a partnership agreement with Tik-Tok competitor Kuaishou Technology.
According to the release, Kuaishou Technology is touted as “China’s leading short video content community and social platform.” The technology company is backed by China-based Tencent Holdings (OTCMKTS:TCEHY) and actually had its initial public offering (IPO) on Friday in Hong Kong. In fact, the IPO raised 41.28 billion Hong Kong dollars ($5.32 billion).
That said, overall, Aurora Mobile is hoping this deal will help improve its advertising monetization efficiency. The firm also said that by “leveraging its powerful artificial intelligence [AI] and advanced analysis technologies, Aurora Mobile’s advertisement SaaS [Software-as-a-Service] services will enable Kuaishou to help brands and performance-based advertisers” in multiple ways.
Additionally, here’s a bit more information on the JG stock deal:
“According to the cooperation agreement, Aurora Mobile will benefit from a revenue share agreement based on advertising revenues allocated to Kuaishou if the labels provided by Aurora Mobile are used by advertisers on the platform. The partnership creates the opportunity for more extensive and deeper cooperation in the future, and Aurora Mobile believes that its innovative technology solutions will further empower Kuaishou’s ability to monetize traffic and help more advertisers improve brand marketing and operational efficiency.”
JG stock was up 63.2% as of Friday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.
