Futu Holdings Shares Slide Ahead of Quarterly Earnings Report

Shares of Fintech brokerage Futu Holdings Ltd experienced significant downward pressure today, declining more than 6% at a particularly inopportune moment. This weakness emerges just days before the company's crucial third-quarter results scheduled for November 18, raising questions about whether the previous upward trend can be sustained.

Investor nervousness was evident as Futu Holdings stock dropped 6.10% to settle at $182.28 during today's session. The shares traded between $181.73 and $187.71, reflecting considerable uncertainty ahead of the Q3 financial disclosure. This represents a notable retreat from yesterday's closing price of $194.13.

Key trading metrics from the session:
* Current price: $182.28 (down 6.10%)
* Market capitalization: $25.41 billion
* Trading volume: 1.48 million shares

Should investors sell immediately? Or is it worth buying Futu Holdings Ltd?

Institutional Selling Raises Concerns

A potentially troubling development comes from the institutional investment sector. Yong Rong HK Asset Management substantially reduced its stake in Futu Holdings during the second quarter of 2025, cutting its position by 36.6%. The firm now maintains holdings of 478,200 shares, representing 14.2% of its investment portfolio. Such a significant reduction in a core position by a major investor naturally prompts market scrutiny.

This selling activity occurs despite Futu's impressive previous quarterly performance. The company had reported a 70% revenue increase to 5.3 billion Hong Kong dollars, alongside a remarkable 113% surge in net income. Earnings per share reached 18.24 HKD, exceeding market expectations. The critical question now is whether this momentum can be maintained in the upcoming report.

Critical Test Approaches

Futu Holdings shares have demonstrated considerable volatility over the past year, trading within a wide range between $70.60 and $202.53. With the next earnings release imminent, market participants are questioning whether the Q3 figures due November 18 can reverse the current negative price movement. Today's trading pattern offers little encouragement for those hoping for an immediate recovery.