Why Cheetah Mobile Stock Skyrocketed Today

Shares of Cheetah Mobile (NYSE: CMCM) have skyrocketed today, up by 45% as of 12:20 p.m. EDT, after the company announced a large special cash dividend. The Chinese tech specialist said it has sold off its stake in TikTok parent ByteDance.

Cheetah Mobile's board of directors has approved a special cash dividend of $1.44 per American depositary share (ADS), or $0.14 per ordinary share. The former figure is what's relevant for U.S. investors. That payout represents a significant proportion of yesterday's closing price of $2.07, and the special dividend will be paid on July 9 to shareholders of record as of June 23.

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