Seeking Alpha

Chinese Internet stocks surge as good earnings reports pour in

Over the last 48 hours, Baidu, Dangdang, Youku, and have all posted Q4 beats and provided strong Q1 guidance. The numbers are giving a lift to a slew of Chinese Internet stocks.

Notable gainers: SOHU +6.5%. PWRD +13.2%. VIPS +4.3%. YY +2.2%. RENN +3.8%. GOMO +5.5%.

In Sohu's case, the rumor mill might also be helping out. A source tells Marbridge Consulting Sohu CEO Charles Zhang and Tencent (TCEHY +1.2%) CEO Pony Ma have talked about merging their companies' online video units. Both Sohu and Tencent trail market leaders Youku and Baidu in China's burgeoning online video market.

Dangdang (DANG +8.6%) is adding to yesterday's big post-earnings gains after Oppenheimer hiked its PT to $15. The firm likes Dangdang's improved efficiency and partnerships with e-commerce rivals (inc. Alibaba's Tmall), and the fact mobile accounted for 13% of Q4 orders.

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Comments (2)
  • TitanInvestor
    , contributor
    Comments (242) | Send Message
    Not surprised about Tencent/SOHU news. Tencent already invested in Sogou, so its a nobrainer to merge Sohu Video.
    1 Mar 2014, 01:35 PM Reply Like
  • www2280
    , contributor
    Comments (531) | Send Message
    Today Tencent agreed to buy 16 percent shares of JD, and give Tecent's e-commerce to JD.
    7 Mar 2014, 09:22 AM Reply Like
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