Wed, Nov. 18, 5:07 PM
Tue, Aug. 4, 12:45 PM
Mon, Aug. 3, 7:03 PM
- Ctrip (NASDAQ:CTRP) is guiding for 45%-50% Y/Y RMB-based revenue growth. Consensus in dollars is for 43% growth.
- The modest size of Ctrip's Q2 sales beat could be disappointing investors, after a much bigger beat was delivered in May. Hotel (accommodation) revenue rose 47% Y/Y (volume +55%) to $178M, transportation (ticket) revenue 45% to $170M (volume +106%), packaged tour revenue 61% to $53M, and corporate travel revenue 34% to $19M.
- R&D spend rose 66% Y/Y to $128M, sales/marketing 42% to $109M, and G&A 34% to $42M. Gross margin was 71% vs. 70% in Q1 and 72% a year ago.
- Meanwhile, in tandem with its Q2 results, smaller Chinese online travel firm eLong (NASDAQ:LONG) has announced the receipt of an $18/share offer from messaging/gaming giant Tencent (OTCPK:TCEHY) to buy all of the eLong shares not currently owned by Tencent, certain members of management, and "major shareholders" controlling at least 70% of all voting rights.
- Tencent owns 15% of eLong. In May, Ctrip spent $400M to take a 37.6% stake in eLong.
- CTRP -1.7% AH to $70.25. LONG +10.1% to $15.65.
- Ctrip: Q2 results, PR. eLong: Q2 results, PR.
Mon, Aug. 3, 6:17 PM
Thu, Jul. 9, 11:25 AM
- With local regulators continuing to scramble to halt plunging equity prices - among other things, investors with 5%+ stakes have been barred from selling shares for 6 months - Chinese markets reversed course last night. Shanghai rose 5.8%, Shenzhen rose 3.8%, and Hong Kong rose 4.5%. The Nasdaq is currently up 1.2%.
- Not surprisingly, U.S.-traded Chinese tech firms are flying higher. Big gainers include Sina (SINA +13.6%), Sohu (SOHU +11.1%), JD.com (JD +8.1%), Vipshop (VIPS +8.3%), Qunar (QUNR +9%), ChinaCache (CCIH +14.1%), Renren (RENN +9.5%), Wowo (WOWO +11.9%), Leju (LEJU +9.1%), China Mobile Games (CMGE +8.3%), Xunlei (XNET +9.7%), Sky-mobi (MOBI +9%), and eLong (LONG +18.1%).
- Also up strongly (previously covered): Qihoo, 21Vianet, E-House, Youku, Baozun, NQ Mobile, Weibo, Cheetah Mobile, Jumei, and Momo. In addition, YY and Dangdang are rallying after becoming the latest Chinese companies to receive going-private offers.
- The Guggenheim China Tech ETF (NYSEARCA:CQQQ) is now up 19% from a Wednesday low of $30.09; it's still down 22% from a May peak of $45.74.
- ETFs: KWEB, QQQC, EMQQ
- Two days ago: Chinese tech stocks crater; many names down over 10%
Wed, Jul. 8, 9:40 AM
- Hao Jiang is replacing Guangfu Cui as eLong's (NASDAQ:LONG) CEO, effective today. Cui will remain on board as a consultant.
- eLong states Jiang was named CEO "after an extensive search of potential candidates and careful consideration of Mr. Jiang's qualifications, including his extensive experience in and deep knowledge of China's online travel industry, and expertise in product development and software."
- The CEO change comes less than two months after Expedia announced it had unloaded its 62.4% eLong stake to an investor group that included Ctrip. eLong has joined many other Chinese tech stocks in seeing fresh losses.
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%.
Mon, Jul. 6, 5:38 PM
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, May 22, 9:16 AM
Fri, May 22, 8:29 AM
- Expedia (NASDAQ:EXPE) announces it sold a 62.4% stake in eLong (NASDAQ:LONG) for $671M.
- The eLong business has been an ongoing drag on profits for Expedia.
- One of the buyers in the group is Ctrip.com (NASDAQ:CTRP).
- As part of the sale agreement, Expedia and Ctrip.com agreed to cooperate in certain geographic markets.
- LONG +36.4% premarket to $28.17.
Thu, May 21, 3:04 PM
- Today's notable tech gainers include Chinese online travel firms Qunar (QUNR +5%) and eLong (LONG +6.8%), Chinese IM/entertainment/gaming platform YY (YY +4.4%), flash storage array vendor Violin Memory (VMEM +3.9%), online furniture retailer Wayfair (W +5%), and industrial laser maker Coherent (COHR +4.9%). The Nasdaq is up 0.4%.
- Notable decliners include solar installer SPI (OTCQB:SOPW -4.8%) and unstructured data management software firm Varonis (VRNS -5.1%).
- Qunar is making fresh highs, and eLong is up 17% over the last two days. YY is recovering some of last week's post-earnings losses. Wayfair posted a Q1 beat 9 days ago. Violin, which saw insider buying in March, posts FQ1 results on June 2. Varonis is two weeks removed from plunging due to a Q1 revenue miss and soft guidance.
- Previously covered: Salesforce, NetApp, Youku, Stratasys, Shopify, Trina, OpenText, Cree, Wave Systems
Fri, May 1, 11:58 AM
- Expedia (EXPE +7.8%) has rallied above $100 after beating Q1 revenue estimates (while missing on EPS) on the back of a 19% Y/Y increase in gross bookings to $14.3B (+25% if not for forex). RBC has upgraded to Outperform.
- Also: Though a strong dollar is now expected to have a 200 bps larger impact on 2015 adjusted EBITDA growth than previously forecast (it hurt Q1 EPS), Expedia used its CC (transcript) to reiterate guidance for 10%-15% full-year adjusted EBITDA growth excluding its struggling Chinese eLong (LONG -1.6%) unit.
- Q1 adjusted EBITDA was up 25% Y/Y excluding eLong, and down 5% otherwise. eLong had a $33M Q1 adjusted EBITDA loss; its revenue fell 14% Y/Y to $34.2M thanks to a 7% drop in hotel reservation revenue (to RMB190.3M) and a 37% drop in air ticketing revenue (to RMB25.1M). Expedia notes EPS would've been $0.08 higher (nearly matching consensus) if it used a tax rate that assumed eLong's losses remain at Q1 levels or higher for the rest of the year.
- Expedia's core online travel revenue rose 17% Y/Y to $1.17B, and its trivago hotel metasearch unit's revenue rose 43% to $119M. The Egencia business travel unit saw revenue drop 2% to $98M. U.S. revenue (boosted by Travelocity) rose 20% to $768M, and international revenue (hurt by forex) 8% to $605M.
- Hotel revenue rose 14%, with a 32% increase in room nights partly offset by a 14% drop in revenue/night. Air ticket revenue rose 9%; tickets sold rose 18%, and revenue/ticket fell 7%.
- Q1 results, PR (.pdf)
Thu, Apr. 30, 5:14 PM
Wed, Feb. 11, 2:31 PM
- Today's notable tech gainers include Chinese mobile app developer/game publisher NQ Mobile (NQ +5.3%), P2P lending platform/recent IPO Lending Club (LC +4.7%), Chinese microblogging leader Weibo (WB +5.2%), analog/mixed-signal chipmaker Power Integrations (POWI +4.1%), security tech provider Wave Systems (WAVX +10.6%), car-buying site TrueCar (TRUE +7.6%), and Fibre Channel/Ethernet connectivity hardware vendor Emulex (ELX +3.6%).
- Notable decliners include Chinese EV maker Kandi Technologies (KNDI -4.7%), optical component maker Oclaro (OCLR -5%), Chinese online travel agency eLong (LONG -5.6%), and big data software provider/recent IPO Hortonworks (HDP -3.5%). The Nasdaq is up 0.1%.
- LendingClub is now up 47% from its $15 IPO price, and Hortonworks up 42% from its $16 IPO price. TrueCar is two days removed from announcing its dealer count has topped 10K. eLong is adding to the losses seen after last week's Q4 miss.
- Previously covered: 3D Systems/Voxeljet, AOL, Worlds, A10 Networks, 500.com, Digital Ally, Marketo, Jive Software
Fri, Feb. 6, 4:37 PM
- With and industry price war and competition from bigger rivals taking a toll, eLong (NASDAQ:LONG) reported Q4 adjusted EPS of -$0.73, far below a -$0.12 consensus. Revenue of RMB246.2M ($39.7M, -6% Y/Y) missed a $43.2M consensus.
- Also: Expedia (owns 65% of eLong) stated on its Q4 CC it expects eLong's quarterly adjusted EBITDA losses to rise in 2015 from Q4's $27M.
- Declining revenue per room night (thanks to coupons and lower commissions) led Q4 hotel revenue to fall 6% Y/Y to RMB210.1M in spite of a 27% increase in room nights stayed. Likewise, air ticket revenue fell 13% to RMB28.1M in spite of a 23% increase in air segments. All other revenue rose 15% to RMB27.1M.
- Though revenue fell, operating expenses rose 25% Y/Y to RMB314.1M, with service enablement spend rising 58% to RMB83.9M, sales/marketing rising 11% to RMB180.4M, and G&A rising 24% to RMB40.3M. eLong ended Q4 with $312M in cash (now equal to over half its market cap), and no debt.
- eLong fell 9.9% in regular trading. Larger rival Ctrip (NASDAQ:CTRP), which (along with Qunar) has been taking share from eLong, fell 3%.
Other News & PR