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.
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.
Thu, Jun. 25, 5:35 PM
Thu, Apr. 30, 1:27 PM
- Baidu (NASDAQ:BIDU) has made fresh 2015 lows after missing Q1 revenue estimates (while beating on EPS) and providing slightly soft Q2 sales guidance. Shares are still well above a 52-week low of $148.44.
- The decline comes even as many on the sell-side defend Baidu, often while highlighting its strong mobile growth. Pac Crest sees Baidu getting over 60% of its revenue from mobile by year's end, up from Q1's 50% and Q4's 42%. It also thinks Baidu's "spending on online-to-offline [services] is starting to bear fruit, with progress in food delivery, movie ticketing and Baidu Wallet, which saw 26 million connected active users." Credit Suisse is also pleased with the online-to-offline growth, as well as better-than-expected Q1 margins.
- On the CC (transcript), CEO Robin Li stated Baidu's Q1 mobile search monthly active users (MAUs) totaled 600M, up from Q4's 540M, and that mobile maps MAUs reached 270M. He also mentioned Baidu is looking to grow its local/mobile search ad sales by allowing advertisers to bid on ads aimed at users in one of 300 Chinese cities.
Wed, Apr. 29, 5:07 PM
- In addition to missing Q1 revenue estimates (while beating on EPS), Baidu (NASDAQ:BIDU) is guiding for Q2 revenue of RMB16.365B-RMB16.75B (+36.5%-37.5% Y/Y and equal to $2.64B-$2.7B), slightly below an RMB16.65B consensus at the midpoint.
- On the bright side, mobile was 50% of Q1 revenue, up sharply from Q4's 42% and Q3's 36%. CEO Robin Li: "Baidu is redefining the search box by building an ecosystem to connect people with services and drive closed loop transactions ... we plan to fully exploit the huge growth potential ahead -- in mobile marketing, online to offline, and key select verticals such as healthcare, education and financial services..."
- Q1 online ad customers totaled 524K, nearly flat Q/Q and up 17.5% Y/Y. Revenue per online ad customer was $3,839, down 9.8% Q/Q (seasonality played a role) and up 13.9% Y/Y.
- Traffic acquisition cost growth appears to have slowed: TAC was 13.5% of revenue vs. 13.4% in Q4 and 12.4% a year ago. Also lifting EPS: SG&A spend fell 16.1% Q/Q to $477M, presumably due to lower promotional spend for Baidu products/services. On a Y/Y basis, SG&A spend rose 47.2% Y/Y (Q4 growth was 89.2%). R&D spend rose 79.1% Y/Y to $368.8M, up from Q4's 69% clip.
- BIDU -1.5% AH to $215.65.
- Q1 results, PR
BIDU vs. ETF Alternatives
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