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, Aug. 25, 9:19 AM| Tue, Aug. 25, 9:19 AM | 7 Comments
Tue, Aug. 18, 1:29 PM
- Cheetah Mobile's (CMCM -2.6%) Q2 revenue of RMB870.5M ($140.4M) and EPS of RMB0.81 ($0.13) soundly beat a consensus of RMB798.2M and -RMB0.13. In addition, Q3 revenue guidance is at RMB990M-RMB1.01B ($160M-$163M, +107%-111% Y/Y), above an RMB958.5M consensus.
- Though still often labeled as a Chinese play, Cheetah received 50% of its Q2 sales (inc. 77% of its mobile sales) from overseas markets. Thanks to both organic growth and the MobPartner acquisition, overseas revenue rose 68.3% Q/Q and over 19x Y/Y to $69.6M. Mobile revenue rose 52.3% Q/Q and 634% Y/Y to $90.3M.
- Sales/metrics: Ad revenue +165.5% Y/Y to $121.4M. Value-added services +29.3% to $17.6M. Internet security services/other -28.8% to $1.4M. Cumulative app installs rose by 256M Q/Q to 1.596B; mobile monthly active users rose by 50M to 494M (71% overseas).
- Financials: One possible area of concern: Gross margin fell to 74.4% from Q1's 78.4% and Q2 2014's 78.5%. Cheetah partly blames higher traffic acquisition costs for MobPartner and mobile gaming-related costs. Operating expenses rose 114.1% Y/Y to $98.4M, thanks in part to a 190.4% increase in sales/marketing spend to $55M. Cheetah ended Q2 with $209.6M in cash, and no debt.
- Q2 results, PR
Tue, Aug. 18, 9:23 AM
Tue, Aug. 18, 5:47 AM
Mon, Aug. 17, 5:30 PM
Mon, Jul. 27, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Mon, Jul. 27, 9:14 AM
Thu, Jul. 9, 9:18 AM
Wed, Jul. 8, 9:12 AM
Tue, Jul. 7, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Tue, Jun. 30, 9:04 AM
- Cheetah Mobile (NYSE:CMCM) has amended its alliance with Chinese gaming/messaging giant Tencent (OTCPK:TCEHY) to increase the annual cap for payments made by Tencent for promotional services provided by Cheetah (via its apps) to RMB250M ($40.3M) from RMB105M ($16.9M). The alliance was originally formed in late 2013.
- Tencent paid Cheetah RMB64.3M over the first 4 months of the year. Cheetah's rapid growth - its mobile monthly active users reached 443.6M in Q1, +12% Q/Q - has increased its potential value to Tencent as a promotional/distribution platform.
- Cheetah has risen to $29.50 premarket. The company joined other Chinese tech names in selling off hard yesterday.
Mon, Jun. 29, 3:38 PM
- A long list of tech companies are posting big declines as the Nasdaq drops 2.2% amid a market rout triggered by expectations of a pending Greek default.
- 6%+ decliners include program guide/content protection IP firm Rovi (ROVI -9.5%), ultracapacitor maker Maxwell (MXWL -8.2%), wireless charging tech developer Energous (WATT -9%), cybersecurity hardware/software provider KEYW Holding (KEYW -8.5%), LED sapphire wafer maker Rubicon (RBCN -10.8%), IP licensing firm WiLAN (WILN -7.1%), security software provider Wave Systems (WAVX -11.6%), online video hosting platform Brightcove (BCOV -7%).
- In a repeat of Friday's trading, many Chinese tech names are also off sharply. The group includes mobile app developer Cheetah Mobile (CMCM -9.7%), e-commerce services firm Baozun (BZUN -8%), online travel agency eLong (LONG -15.3%), and online retailer LightInTheBox (LITB -7.8%).
- See also: LinkedIn, Yandex/Qiwi, solar stocks, Xoom, AppliedMicro
Fri, Jun. 26, 11:45 AM
- As was the case a week ago, Chinese Web and mobile names are getting clocked in response to a sharp overseas selloff: Shanghai and Shenzhen respectively fell 7.4% and 7.9% overnight, putting their recent declines around the standard bear market threshold of 20%. The Nasdaq is down 0.4%.
- Explanations for China's selloff range from tighter margin requirements to cautious analyst notes to speculators simply choosing to take profits following a massive run-up. Shanghai and Shenzhen's 12-month gains now stand at 106% and 132%.
- Major U.S.-traded decliners include YY (YY -6.5%), Sohu (SOHU -5.4%), Sina (SINA -4.7%), Weibo (WB -5.2%), Xunlei (XNET -9.5%), Dangdang (DANG -8.7%), Jumei (JMEI -9.1%), Youku (YOKU -8.7%), Cheetah Mobile (CMCM -7.2%), Bitauto (BITA -6.7%), SouFun (SFUN -5.9%), ChinaCache (CCIH -5.4%), Zhaopin (ZPIN -5.6%), Wowo (WOWO -3%), and 500.com (WBAI -5.3%).
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Fri, Jun. 12, 12:43 PM
- The Nasdaq is down 0.6% and the S&P 0.7%, but one wouldn't guess that from looking at the performance of U.S.-traded Chinese Web/mobile stocks (CQQQ +1.1%), which are continuing a torrid 2015.
- Sky-mobi (MOBI +14.7%) and Xunlei (XNET +12.2%) top the list of major gainers. Others include YY (YY +4.8%), Vipshop (VIPS +4.6%), Cheetah Mobile (CMCM +6.7%), SouFun (SFUN +4.9%), Leju (LEJU +6.3%), iDreamSky (DSKY +6.4%), and Jumei (JMEI +4.1%).
- Today's gains come after the Shanghai composite rose 0.9% overnight, and the Shenzhen index rose 1.3%. Bubble fears for Chinese exchanges are easy to find.
- ETFs: KWEB, QQQC
- Two days ago: Chinese Internet and solar stocks up strongly
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