Tue, Sep. 1, 5:39 PM
Mon, Aug. 31, 2:11 PM
- U.S.-traded Chinese tech stocks are seeing fresh selling pressure (CQQQ -2.9%) after Beijing announced it's halting major stock purchases to prop up local markets. Authorities also arrested nearly 200 people for actions deemed to have a destabilizing effect on markets.
- Decliners include giants Alibaba (BABA -3.9%) and Baidu (BIDU -3.1%), as well as Ctrip (CTRP -4.4%), Qunar (QUNR -4.8%), Vipshop (VIPS -4.7%), JD.com (JD -3.2%), Jumei (JMEI -4.2%), NetEase (NTES -5.8%), Momo (MOMO -4.4%), and 500.com (WBAI -4%). The Nasdaq is down 0.8%.
- Separately, the WSJ has taken a look at Alibaba and JD's efforts to grow sales to rural Chinese shoppers, as urban user growth slows. The number of rural Chinese shopping online rose 41% last year to 77M (compares with a rural Chinese population of 600M), outpacing the 17% growth seen in urban shoppers. Chinese rural per capita income was still less than 1/3 of urban levels as of 2013.
- ETFs: QQQC, KWEB, EMQQ
Mon, Aug. 24, 9:22 AM
- The Shanghai and Shenzhen exchanges nosedived again overnight as fears of an economic slowdown triggered panic selling, and U.S. futures are off sharply premarket. As one would expect, many U.S.-traded Chinese names are seeing big losses.
- Baidu (NASDAQ:BIDU) -9.8% premarket. SINA -9.7%. Weibo (NASDAQ:WB) -10.5%. Ctrip (NASDAQ:CTRP) -9.4%. Qunar (NASDAQ:QUNR) -15%. SouFun (NYSE:SFUN) -15.4%. NQ Mobile -10.1%. Qihoo (NYSE:QIHU) -14.7%. YY -9.3%. Bitauto (NYSE:BITA) -8.8%. JD.com (NASDAQ:JD) -9.6%. Vipshop (NYSE:VIPS) -15.9%.
- Alibaba (previous) is down 9.8% to $61.48, making new post-IPO lows along the way. Tencent (OTCPK:TCEHY) fell a relatively modest 5% overnight in Hong Kong.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Tue, Aug. 11, 12:27 PM
- In its latest move to boost slowing economic growth, the PBOC has devalued the yuan, while insisting it's a one-time move. The yuan/dollar ratio is currently at 6.33, down from 6.21 yesterday.
- A number of Chinese Internet stocks that record the lion's share of their revenue in yuan are seeing their U.S. shares (denominated in dollars, of course) underperform (CQQQ -3.4%) amid a 1.3% drop for the Nasdaq. Major decliners include Baidu (BIDU -3.8%), Qunar (QUNR -10.2%), Ctrip (CTRP -5.9%), JD.com (JD -5.8%), Sina (SINA -5%), NetEase (NTES -3.9%), Jumei (JMEI -10.7%), Youku (YOKU -6.2%), Bitauto (BITA -6.4%), Leju (LEJU -6%), Changyou (CYOU -7.7%), and Autohome (ATHM -5.3%).
- Among Chinese solar names, Daqo (DQ -14.4%) and JinkoSolar (JKS -3.3%) are seeing big losses.
- JD.com is adding to the Monday losses seen following a Morgan Stanley downgrade and news Alibaba has formed an alliance with major electronics retailer Suning. Both JD and Jumei could be affected by fellow online retailer Vipshop (down 11.1%), which yesterday afternoon provided light Q3 sales guidance to go with a Q2 EPS beat.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese Internet stocks rally after Shanghai/Shenzhen post big gains
Wed, Aug. 5, 3:54 AM
- China is setting up cybersecurity police units at major Internet companies, a move aimed at strengthening the government's grip on the world's largest population of Web users.
- The officers will be added to help boost defenses against crimes such as fraud and "spreading of rumors."
- Beijing is also discussing a separate plan to build a national cyber safety net, enabling national and local governments to cut Internet access when needed.
- Related tickers: BABA, BIDU, OTCPK:TCEHY
Thu, Jul. 30, 3:13 AM
- Baidu (NASDAQ:BIDU) has announced a new $1B share repurchase program, after its stock price got hammered by investors following weak earnings results on Monday.
- The buyback will take place over the next 12 months and will be funded from the company's existing cash balance.
- On the decline: BIDU shares have now lost almost a third of their value since their all-time high last November, and are down 19.1% over the past week.
Tue, Jul. 28, 12:40 PM
Tue, Jul. 28, 9:17 AM
Mon, Jul. 27, 5:37 PM
Mon, Jul. 27, 4:48 PM
- Though it posted in-line Q2 sales (and beat on EPS), Baidu (NASDAQ:BIDU) is guiding for Q3 revenue of RMB18.17B-RMB18.58B ($2.931B-$2.997B, +34.4%-37.4% Y/Y), below an RMB18.79B consensus.
- Mobile: After rising to 50% of revenue Q1 from 42% in Q4 and 36% in Q3, mobile remained at 50% of revenue in Q2. Mobile search monthly active users (MAUs) +24% Y/Y to 629M; mobile maps MAUs +48% to 304M.
- Metrics: Online ad customers rose 12.6% Q/Q and 20.9% Y/Y to 590K. Revenue per ad customer rose 15.1% Q/Q (seasonality) and 13.2% Y/Y to $4,419. GMV for online-to-offline (O2O) services rose 109% Y/Y to $6.5B.
- Financials: Spending remains aggressive: SG&A spend rose 81% Y/Y to $627.4M, and R&D spend rose 56.2% to $437.5M. Traffic acquisition costs were 12.7% of revenue, down 80 bps Q/Q and flat Y/Y. Bandwidth costs fell to 5.4% of revenue from 5.8% a year ago; content costs (online video-driven) rose to 5.1% from 3%. Baidu ended Q2 with $12.1B in cash, and $657M in debt.
- Baidu has fallen to $186.80 AH.
- Q2 results, PR
- Yesterday: Baidu investing heavily in O2O services to head off mobile app threat
- Update (5:08PM ET): Shares are now down 9% AH.
Mon, Jul. 27, 4:32 PM
Sun, Jul. 26, 5:35 PM
Sun, Jul. 26, 4:05 PM
- "[A] lot of the companies that started to build their own apps — they don’t allow us to index their content ... If they go directly to those apps and get the services, they don’t need search anymore because search is just for information," observes Baidu (NASDAQ:BIDU) CEO Robin Li in an interview, suggesting his company's plans to pour billions into developing online-to-offline (O2O) services is partly an effort to address the challenge posed to search by mobile apps. "We need to [directly] connect people with services — mobile buying, movie tickets, these sort of high frequency services."
- Li adds Baidu's O2O investments go well beyond developing sites/apps. "You need a large salesforce. You need to talk to those mom-and-pop shops face-to-face. You need a lot of people who are paid one tenth of a Google engineer, you need to manage that kind of workforce to do that." In late 2014, Baidu invested in UBER, arguably the world's most successful O2O platform to date and a company rapidly expanding its Chinese footprint.
- He estimates 99% of the local service providers signed up for Baidu's O2O platform are new customers, rather than existing search ad buyers. "They don’t have a powerful website to advertise, those mom-and-pop shops. When we run their services, we do it ourselves. We take photos of their dishes ourselves, and put it on our site."
- When asked why Baidu invested in Uber over Chinese rival Didi Kuaidi (backed by Alibaba, Tencent, and SoftBank), Li notes Uber agreed to integrate Baidu's mapping and payment services with Uber's Chinese apps. Didi Kuaidi supports Alibaba's Alipay and Tencent's WePay services.
- Baidu's Q2 report arrives on Monday afternoon.
Fri, Jul. 17, 12:59 PM
- Add Baidu (NASDAQ:BIDU) to the list of companies - see also Facebook, LinkedIn, and Priceline - shooting higher after Google (up over 14%) provided market-pleasing Q2 figures and CC remarks.
- Google, of course, gets only a small % of its revenue from China, after having shut down Google.cn in 2010. Much of the company's Chinese business revolves around ad sales to Chinese companies looking to reach potential overseas buyers.
- Baidu's own Q2 report is due on July 27. The Chinese search giant is up 11% from a July 8 low of $178.81 (hit as Chinese tech stocks nosedived), and trades for 22x a 2016 EPS consensus of $9.15. 2015 and 2016 revenue growth consensus estimates are at 38.4% and 32.8%.
Thu, Jul. 16, 5:41 PM
Tue, Jul. 7, 11:08 AM
- Though not seeing the 10%+ declines witnessed by many U.S.-traded Chinese tech peers, Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) are down sharply following fresh overnight losses for the Shanghai and Shenzhen exchanges.
- Yahoo (NASDAQ:YHOO), whose 384M-share Alibaba stake is currently worth $29.4B, is once more following in Alibaba's footsteps. The Nasdaq is down 1.5%.
- Alibaba has made fresh post-IPO lows. Baidu is less than $7 away from a 52-week low of $176.69. Alibaba now trades for 21x an FY17 (ends March '17) EPS consensus of $3.72. Baidu trades for 20x a 2016 EPS consensus of $9.29.
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