Kuaishou Technology shares tumbled on Tuesday after the ByteDance rival released its first-quarter financial results, which showed a sink in live streaming business and a widened net loss due to costs jump.

The stock price of the short-video platform plunged as much as 11 percent in the morning trading in Hong Kong, after analysts from brokerages including Morgan Stanley lowered their stock price targets, according to Bloomberg.

While revenues soared by 36.6 percent to 17 billion yuan ($2.65 billion) in the first quarter, sales from its live streaming business decreased by 19.5 percent to 7.3 billion yuan. Live streaming accounted for 43 percent of the revenues, which stood at 72 percent in the first quarter of 2020.

The financial results also showed net loss widened to 57.8 billion yuan, versus 30.5 billion yuan a year ago. It was driven by a surge in selling and marketing expenses.

The sink in live streaming business and costs jump came along with a boost in advertising and e-commerce services in the first three months, as Kuaishou is expanding beyond its roots in video content.

Over 50 percent of the total revenues came from online marketing services, which grew by 161.5 percent from a year ago to 8.6 billion yuan. And revenues from e-commerce services also showed explosive growth of 589.1 percent year on year, reaching 1.2 billion yuan.

The financial results suggested that Kuaishou's competition with TikTok's owner ByteDance could be heating up, as an internal memo from ByteDance showed the internet titan is seeking to grow advertising sales in China by 42 percent and triple the size of its e-commerce services this year.

Average daily active users (DAU) on Kuaishou App increased to 295.3 million in the first three months from 253.2 million in the same period of 2020, while average daily time spent per DAU further expanded to 99.3 minutes, representing a year-on-year increase of 16.5 percent.

The company's overseas business was still at an early stage of development, but it saw a better-than-expected expansion overseas, with average monthly active users exceeding 100 million in the first quarter and further rising to more than 150 million in April.

"Compared with China, the levels of maturity and penetration for short video and live streaming in overseas markets are relatively low, and we see a great deal of potential and opportunities out there," the company said, adding that South America and Southeast Asia are the main targets.