Thu, Oct. 29, 7:26 PM
- Though it beat Q3 EPS estimates and posted in-line revenue, Baidu (NASDAQ:BIDU) is guiding for Q4 revenue of RMB18.2B-RMB18.75B (+29.5%-33.4% Y/Y and equal to $2.864B-$2.95B), below an RMB18.93B consensus. However, expectations were low amid Chinese macro concerns.
- Metrics: Online ad customers rose 5.6% Q/Q and 20.7% Y/Y to 623K. Revenue per online ad customer rose 3.3% Q/Q and 9.3% Y/Y to $4,453. GMV for transaction services (cover Qunar's travel services, Nuomi's deals, and Baidu Takeout Delivery) rose 119% Y/Y to $9.5B. Baidu Wallet accounts rose 520% to 45M.
- Mobile: Mobile was 54% of revenue, up from 50% in Q3 and Q2. Mobile search traffic was nearly 2/3 of total search traffic. Mobile search MAUs rose 26% Y/Y to 643M; mobile maps MAUs rose 34% to 326M.
- Financials: Lifting EPS: $1B was spent to buy back 6M shares. Traffic acquisition costs rose to 13.1% of revenue from 12.9% in Q2 and 12.7% a year ago. Content costs were 5% of revenue vs. 3.7% in Q2 and 5.1% a year ago. SG&A spend rose 111.2% Y/Y to $897.1M thanks to high "promotional spending" for transaction services. R&D spend rose 46.9% to $423.2M.
- BIDU +7.4% after hours to $181.50, reaching its highest levels since July.
- Q3 results, PR
- Update: Baidu's Q4 revenue guidance doesn't include Qunar's results beyond Oct. 26, thanks to the recent Ctrip deal. The Q4 consensus might not fully account for the change. (hat tip: SA commenter David RG)
Thu, Oct. 29, 6:42 PM
Mon, Oct. 26, 9:15 AM
Mon, Oct. 26, 7:41 AM
- Ctrip (NASDAQ:CTRP) announces it completed a share exchange transaction with Baidu (NASDAQ:BIDU) involving travel site player Qunar Cayman Islands.
- Baidu will receive 11,488,381 shares of Ctrip in exchange for 178.7M class A ordinary shares and 11.45M class B shares of Qunar Cayman Islands (NASDAQ:QUNR).
- After the transaction closes, Baidu will own shares representing 25% of Ctrip's voting interests.
- Baidu and Ctrip also say they agreed to work together on more products and services.
- CTRP +20.4% premarket to $89.50. Baidu +8.47% to $170.95. QUNR +33.1% to $52.60.
Fri, Oct. 9, 12:50 PM
- Lions Gate Entertainment (LGF -0.3%) has signed a deal to distribute key hit films on streaming platform iQiyi, China's largest.
- The deal covers both subscription and transactional video on demand for a number of higher-profile films from Lions Gate and third parties, including The Hunger Games: Mockingjay Part 2; Allegiant, the next film in the Divergent franchise; Now You See Me 2; and action film Deepwater Horizon.
- IQiyi, controlled by Baidu (BIDU +1.6%), runs video platforms that have more than 500M unique users.
- Meanwhile, Lions Gate also expanded its distribution deal with Metropolitan Film Export in France. That pact now covers films that commence principal photography after Jan. 1, 2016.
Wed, Oct. 7, 10:08 AM
- Baidu (BIDU -1.2%) is off moderately in early trading after top Chinese local deals site Meituan.com (backed by Alibaba) announced a merger with #2 deals site and leading restaurant review platform Dianping.com (backed by Tencent), with the goal of creating a giant in the online-to-offline (O2O) services space.
- Meituan/Dianping sport a combined $15B valuation. U.S. local deals leader Groupon (GRPN +2.7%), which sports only a $2.4B market cap, is trading higher. The Nasdaq is up 0.7%.
- Meituan and Dianping both compete against Baidu's Nuomi deals platform (the market's #3 player), which it bought from Renren last year. Baidu has committed RMB20B ($3.2B) to growing its O2O offerings, with Nuomi expected to receive a large chunk of the investment.
- CEO Robin Li has suggested Baidu is investing heavily in O2O to head off the threat of mobile users bypassing its search platform and directly launching 3rd-party mobile apps, and that its spending includes building a large salesforce to win over small businesses. Meanwhile, in a recent WSJ column comparing Baidu/Nuomi and Meituan, Baidu exec Zeng Liang stated Baidu's spending on subsidies for O2O transactions "is not small," and that the company could expand its O2O offerings to cover financial and logistics services.
- Notable Calls reports hearing a tier-1 desk call the Meituan/Dianping deal a "clear negative" for Baidu. It also hears a boutique shop stating a meeting with Baidu suggests the company's Q3 op. margin will be closer to 10% rather than an expected 15%.
Fri, Oct. 2, 12:13 PM
- Hammered over the last several months as macro concerns and plunging local markets took a toll, U.S.-traded Chinese tech stocks are up strongly (CQQQ +3.2%) today even as the Nasdaq and S&P post modest declines.
- Web/mobile stocks posting big gains include giants Alibaba (BABA +5.3%) and Baidu (BIDU +4.5%), with the former naturally taking Yahoo (YHOO +4%) higher with it. Yahoo rose earlier this week after stating it's still pushing ahead with a spinoff of its 384M-share Alibaba stake.
- Other gainers include Vipshop (VIPS +6.6%), SouFun (SFUN +6.2%), Qihoo (QIHU +6.7%), Youku (YOKU +5.8%), Jumei (JMEI +8%), Bitauto (BITA +5.3%), Weibo (WB +5.9%), Jumei (JMEI +8%), and Cheetah Mobile (CMCM +6.6%). Online travel leaders Ctrip and Qunar are also up big, possibly aided by new efforts from Beijing to boost Macau tourism.
- Solar winners include Yingli (YGE +4.1%), ReneSola (SOL +5.6%), and Daqo (DQ +9.4%).
- ETFs: KWEB, QQQC, EMQQ
Wed, Sep. 16, 2:06 PM
- The beaten-down Shanghai and Shenzhen exchanges respectively rose 4.9% and 6.5% overnight thanks to late-session surges - many suspect fresh government intervention was responsible. U.S. traded Chinese Web/mobile names have risen sharply (CQQQ +4.4%) on a day the Nasdaq is up just 0.3%.
- Big gainers include search giant Baidu (BIDU +5.4%), rival Qihoo (QIHU +6.5%), auto sites Bitauto (BITA +6.4%) and Autohome (ATHM +5.3%), travel sites Ctrip (CTRP +7.4%) and Qunar (QUNR +6.5%), online real estate plays SouFun (SFUN +6.1%) and Leju (LEJU +4.5%), and online retailers JD.com (JD +4.8%) and Vipshop (VIPS +6.3%). Priceline announced yesterday afternoon it had hiked its Ctrip stake to 11.6%.
- Other winners include ChinaCache (CCIH +8.1%), Cheetah Mobile (CMCM +6.2%), Sina (SINA +6.7%), Weibo (WB +4.3%), Youku (YOKU +5.7%), and YY (YY +4.1%).
- ETFs: KWEB, QQQC, EMQQ
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
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.
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