Fri, May 22, 12:09 PM
- The Shanghai exchange rose 2.8% overnight to a 7-year high, and has once more taken U.S.-traded Chinese Internet/mobile names higher with it.
- Major gainers include Renren (RENN +10.4%), Youku (YOKU +14.1%), SouFun (SFUN +10.8%), Weibo (WB +4.4%), Dangdang (DANG +7.9%), Momo (MOMO +9.7%), and iDreamSky (DSKY +4.9%). Ctrip and eLong are also up sharply, following news an investor group featuring Ctrip bought a 62.4% stake in eLong from Expedia.
- Renren, whose stable of online P2P lending investments has been drawing attention, is now up 31% since its May 12 Q1 report. Youku is up 33% since providing strong Q2 guidance to go with mixed Q1 results on Wednesday evening. Momo is up 44% since delivering market-pleasing Q1 results on Monday afternoon.
- ETFs: KWEB, CQQQ, QQQC
Thu, May 21, 10:20 AM
- Building off postmarket gains yesterday, Chinese online video leader Youku Tudou (NYSE:YOKU) is up 16.6% this morning after posting a Q1 revenue beat and some strong revenue guidance for the second quarter.
- On the company's earnings call, Victor Koo sounded bullish notes about the coming year's revenue with content marketing as a driver: While revenue growth as a public company has been strong, "On ARPU basis it’s still actually really, really low, and so on the consumer revenue side we feel that we’re just getting started and there is huge potential in this area."
- Brean Capital raised its price target on the shares to $26: "We expect YOKU to further improve its brand ad monetization under its multi-screen entertainment and media strategy with increasing mobile contribution in 2015."
- Shares are trading currently at $26.85.
Wed, May 20, 6:30 PM
- China's net-TV leader Youku Tudou (NYSE:YOKU) was selling off after hours before reversing course, +1.4%, after it posted a mixed Q1 earnings report where a net loss widened despite revenues that grew 51% and beat expectations easily.
- The company recorded a gross loss in non-GAAP terms of $5.3M, vs. a year-ago gross profit of $14.6M, as its content costs jumped 87.6%, to 669M yuan ($107.9M). Content costs were 59% of net revenues, up from 46%, and bandwidth costs of $49.5M were 29% of revenues.
- Chairman and CEO Victor Koo says strategy will improve business economics: Q1 was "marked by solid progress in the three key growth pillars that drive our business development for this year: accelerated topline growth, revenue diversification, and significant ramp up of web-native content."
- The company guided to Q2 revenues of 1.47B-1.52B yuan ($237M-$245M, on the high side of an expected $225.5M). It expects advertising revenues to be between 1.25B-1.3B yuan.
- Conference call at 9 p.m. ET.
- Press Release
Wed, May 20, 6:10 PM
Tue, May 19, 5:35 PM
Fri, May 15, 2:26 PM
- Youku Tudou (NYSE:YOKU) -- down 7.5% this morning after the CEO of iQiyi squelched rumors of a merger -- is now up 3.3% this afternoon, after announcing an alliance with Star Game to create a "gaming video ecosystem" in China.
- The team-up, called the Star Video Alliance, aims to bring together the gaming video community on Youku's platform.
- Youku notes that six of its top 10 channels devoted to user/player-generated content are dedicated to gaming videos that average daily views of 50M. There are more than 2,000 active PGC gaming channels on Youku Tudou.
Fri, May 15, 10:11 AM
- A day after running up 17%, Youku Tudou (NYSE:YOKU) is off 7.5% as GeoInvesting points to Chinese media citations of a denial by the CEO of iQiyi (controlled by Baidu): "Information about merging between iQiyi and Youku is very much not true."
- GeoInvesting thinks Youku Tudou's headed back to $18 as news of the denial circulates. Shares are trading at $21.23.
- Previously: Youku, MagnaChip surge amid heavy call-buying (May. 14 2015)
Thu, May 14, 2:23 PM
- optionMONSTER reports strong call-buying activity for both Chinese online video leader Youku (YOKU +16.8%) and Korean analog/mixed-signal chipmaker MagnaChip (MX +7.2%).
- More than 3,400 Youku calls expiring May 22 and sporting a $21 strike price have been bought, as have 2,800 calls expiring tomorrow and sporting a $20.50 strike price. The calls were all out of the money going into today. About 3,500 MagnaChip September calls sporting a $7.50 strike price (still out of the money) were bought yesterday at prices ranging from $0.65-$0.75.
- Youku, quite volatile this year, is now up 92% from a March 31 low of $11.85. MagnaChip, though still down sharply YTD thanks to a February crash that followed the end of its accounting review, is now up 29% from a May 5 close of $5.08.
Wed, May 6, 10:11 AM
- Youku Tudou (YOKU -2.1%) has named Hugh Wu as its CFO and senior VP, effective immediately.
- He previously served as CFO of Lenovo China and Asia Pacific Emerging Markets.
- He's joining a firmed-up management team that also recently added a chief product officer in Teddy Gu. The company named Edward Su its new COO on March 5.
- Shares are up 6.4% YTD.
Mon, Apr. 27, 12:17 PM
- Chinese Internet stocks are adding to their big recent gains following a 2.7% overnight rally in Shanghai, as investor sentiment towards Chinese equities continues improving following a string of stimulus moves. Today's gains come with the Nasdaq (took out its 2000 highs on Friday) down 0.2%.
- Baidu (BIDU +3%) is among the winners. Others include Youku (YOKU +10.7%), Vipshop (VIPS +4.1%), Dangdang (DANG +6.7%), 58.com (WUBA +3%), E-House (EJ +3.7%), 500.com (WBAI +4.3%), Sina (SINA +4.1%), Bitauto (BITA +3.1%), Autohome (ATHM +2.4%), Qunar (QUNR +3.5%), Xunlei (XNET +5.7%), and Renren (RENN +2.3%).
- Baidu's gains come ahead of its Wednesday Q1 report. Vipshop and 58.com have made fresh highs; the latter is up 61% since the first report emerged of a deal (later confirmed) with rival Ganji.com. Youku is up 53% from an April 2 post-earnings low of $12.31, and 500.com is up 47% since the company suspended all online lottery sales in early April, while stating it will work with regulators to restart sales. Renren is up 31% from its March 30 close, possibly aided by enthusiasm for its large and growing portfolio of online lending investments.
- JD.com and Sky-mobi are rallying today with the help of bullish analyst notes. Perfect World has received a lift from an improved buyout offer.
- ETFs: KWEB, CQQQ, QQQC
Mon, Apr. 20, 12:31 PM
- Youku Tudou (YOKU -3.6%) is off today, bucking an uptrend among Chinese ADRs, as Summit Research has launched coverage of the shares at Hold, with a $16 price target. ADRs closed yesterday at $16.76 and are now trading at $16.14.
- Meanwhile, Heyi Pictures, the company's filmmaking unit, announced six partnerships to create more films from partner properties, part of an expansion planned to build its film portfolio beyond 20 titles.
- The unit is partnering with two IP providers (Mopian; and Readers Publishing and Media), an incubation partner in BlueVision Media, and three "cross-screen" partners (CCTV-6, AirMedia, Fundamental Films).
- Mopian's participation in the deal starts with Qidian.com, a literary site feature hundreds of thousands of books (finished or in progress) that millions of readers visit and read for small micropayments. Top titles at Qidian.com (with more than 50M views) will be first to become movies.
- Readers Publishing and Media holds eight publishing houses and 13 magazines as well as animation, digital and outdoor media platforms.
Fri, Apr. 17, 5:36 PM
Thu, Apr. 16, 12:32 PM
- Shares of Youku Tudou (YOKU +2%) have given back some gains after rising as much as 6.7% this morning.
- One reason for the move could be some clarity on Netflix's China expansion plans. CEO Reed Hastings says Netflix will stick to its core and pursue a subscription video streaming service, rather than provide free entertainment supported by ads (as Chinese consumers are accustomed to).
- "That may confine us to being only part of the market the first couple years, but that's what we would do," says Hastings. The company still needs permission to operate in one of the world's largest video markets.
- Youku Tudou is China's biggest online video company, and due to different (or unenforced) copyright laws, Youku has carried copyrighted material without license. Years ago, Tudou had pioneered advertising systems for video sites at heavy scale.
Tue, Apr. 14, 3:08 PM
- Very few tech companies are posting major losses, and a larger number are posting big gains. The Nasdaq is down 0.3%.
- Notable gainers include several Chinese names: Online auto plays Bitauto (BITA +7.4%) and Autohome (ATHM +3.9%), online video platform Youku (YOKU +8.2%), and mobile game publisher Sky-mobi (MOBI +10.1%).
- Others include home automation hardware/software provider Control4 (CTRL +3.9%), oil/gas seismic hardware provider Geospace (GEOS +5.1%), and Indian site owner Rediff (REDF +12.6%).
- Youku, which has been on a roller-coaster ride, is near its highest levels seen the company posted mixed Q4 results and disclosed an SEC inquiry on March 19. Beaten-down Geospace could be benefiting from a fresh rally in oil prices; WTI crude is at $53.27/barrel.
- Previously covered: Lending Club, Alcatel-Lucent, 58.com, InvenSense, TowerJazz, Tangoe, optical networking firms
- Notable decliners: Skyworks/Qorvo, Nokia, Sanmina, Web.com
Fri, Apr. 10, 3:05 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +6%), custom parts maker Proto Labs (PRLB +4.6%), printing plate/commercial film maker Eastman Kodak (KODK +3.9%), cloud HR software vendor Paylocity (PCTY +3.7%), cloud telecom expense software vendor Tangoe (TNGO +4.2%), and cloud tech support software vendor Support.com (SPRT +6.7%). The Nasdaq is up 0.4%.
- Only a few tech companies are posting major declines. The group includes Chinese online video platform Youku (YOKU -5.7%) and mainframe/high-end server maker Unisys (UIS -3.4%).
- Following a rough 2014, VirnetX is up 34% in 2015; 15.9M shares were shorted as of March 13. Proto Labs has broken out of the narrow range shares have traded in since mid-February. Support.com's gains come a day after the company disclosed a new contract with Comcast. Paylocity is erasing the losses seen yesterday following a BofA downgrade. Kodak is up 13% since posting Q4 results on March 16.
- Youku, quite volatile lately, is giving back a chunk of Wednesday's big gains. Unisys' decline comes ahead of its April 23 Q1 report. On Wednesday, the company announced it's supplying high-end servers and cybersecurity software to NASA through the agency's SEWP V contract (covers multiple suppliers, worth up to $20B over 10 years).
- Previously covered: 3D Systems, Alcatel-Lucent, Nokia, LinkedIn, GoDaddy, FireEye, Turtle Beach, Mavenir/Mitel, Gigamon, Synacor
Wed, Apr. 8, 10:58 AM
- Following a big overnight rally in Hong Kong (followed a 3-day holiday during which Shanghai rallied), beaten-down Chinese Internet and mobile stocks have soared in U.S. trading.
- The biggest gainers include many names that are far below their 2014 highs: The group includes Qihoo (QIHU +10.5%), YY (YY +14.9%), Taomee (TAOM +14.3%), Sina (SINA +8.7%), and Weibo (WB +12.1%). Mobile game publishers Sky-mobi (MOBI +12.6%), China Mobile Games (CMGE +8%), and iDreamSky (DSKY +13.4%) are also sharply higher, as are online real estate plays SouFun (SFUN +13.1%), E-House (EJ +6.1%), and Leju (LEJU +9.8%).
- Giants Alibaba (BABA +3.4%) and Baidu (BIDU +4.1%) aren't being left out. Neither are Youku (YOKU +7.5%), 21Vianet (VNET +7.4%), Momo (MOMO +6.8%), Sohu (SOHU +7.7%), Changyou (CYOU +4.5%), Dangdang (DANG +7.3%), Vipshop (VIPS +4.8%), JD.com (JD +3.9%), Jumei (JMEI +6.6%), Sungy Mobile (GOMO +5.8%), China Techfaith (CNTF +7.1%), and KongZhong (KZ +5.5%).
- Alibaba has proposed an asset injection into its money-losing Alibaba Pictures (+36% in Hong Kong) film arm. Sky-mobi has seen Rosenblatt (Buy) hike its target to $11, while noting many Chinese mobile game developers have been bought out; it thinks Sky-mobi's investments in developers could be worth $140M. NetEase has been upgraded by CICC Research.
- Over in Hong Kong, software/cloud services provider Kingsoft (OTCPK:KSFTF) rose 24.2% to HKD$29.50. Messaging/gaming giant Tencent (OTCPK:TCEHY) rose 3.3% to HKD$154.80.
- ETFs: KWEB, CQQQ, QQQC
Youku Tudou Inc is an Internet television company in china. Its internet television platform enables consumers to search, view and share high-quality video content quickly and easily across multiple devices.
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