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
Fri, Sep. 18, 9:47 AM
- Less than two weeks after stating it has exercised a put option demanding Coolpad buy out Qihoo's (QIHU -1.8%) 49.5% stake for $1.5B due to Coolpad's alleged violation of a non-compete agreement, Qihoo has gone in the other direction, hiking its stake to 75% as part of a settlement,
- The JV will return "certain Internet operating assets" contributed by Coolpad back to the company. At the same time, Qihoo and Coolpad have "agreed to closely cooperate in intellectual property sharing, supply chain management, product development, and app distribution" related to offering phones under the Qiku and Dazen brands.
- The JV unveiled 3 Qiku-branded phones in late August, while emphasizing their security features. Two of the phones have dual 13MP rear cameras (meant to improve low-light shot quality).
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. 8, 10:54 AM
- Less than a year after announcing a smartphone JV with Chinese OEM Coolpad, Qihoo (QIHU +0.8%) has exercised a put option requiring Coolpad to buy out the company's 49.5% JV stake.
- Qihoo states it can exercise the put option if Coolpad breaches the JV agreement's non-compete obligations, and accuses Coolpad of having done so. It assigns a "fair market value" of $742.5M for its stake. With a breach requiring Coolpad to pay twice the fair market value (if upheld), Qihoo is seeking a $1.485B payout.
- Coolpad might beg to differ with both Qihoo's breach allegations and its estimated JV valuation. Qihoo originally paid $409M for a 45% stake, and later another $45M to up its stake to 49.5%. The JV recently launched 3 Android phones under the Qiku label.
Tue, Sep. 8, 9:14 AM
Fri, Sep. 4, 2:38 PM
- A slew of Chinese firms are among the biggest tech decliners as U.S. markets once more go into risk-aversion mode following a weaker-than-expected jobs report. The Guggenheim China Tech ETF (CQQQ -3.3%) is now down 19% YTD.
- Big decliners include Alibaba (BABA -4.7%), as well as e-commerce peers JD.com (JD -6.6%), Vipshop (VIPS -7.9%), and LightInTheBox (LITB -3.8%). Others include Qihoo (QIHU -4.4%), Autohome (ATHM -5.3%), Sina (SINA -4.7%), YY (YY -4.3%), Ctrip (CTRP -4.3%), Qunar (QUNR -4.4%), Wowo (WOWO -5.8%), and iDreamSky (DSKY -5.6%).
- Yesterday, Bloomberg reported Alibaba founder/chairman Jack Ma and vice chairman Joseph Tsai plan to take out a $2B+ margin loan pledged against their Alibaba stock holdings, rather than sell shares to raise funds. The money reportedly could go towards Tsai's Blue Pool Capital family office.
- After initially moving higher, Qihoo is now below where it traded before posting a Q2 EPS beat (and not providing any guidance) on Tuesday afternoon.
- ETFs: KWEB, QQQC, EMQQ
Fri, Sep. 4, 1:19 PM
- The Information reports Google (GOOG -1.3%, GOOGL -1.4%) "hopes to get Chinese government approval to distribute a special China version" of Google Play as soon as this fall. The Chinese version of the App Store will comply with Beijing's censorship requirements, and store data locally.
- The site previously reported of plans for a Chinese Play launch last November. Google shut down its Chinese search engine (Google.cn) in 2010 rather than comply with censorship requirements. However, the company still does plenty of business with Chinese advertisers looking to reach overseas buyers, and hosts many apps developed by Chinese firms within international Play stores.
- While Android accounts for well over half of Chinese smartphone sales - Kantar Worldpanel estimates a 79.1% unit share in "Urban China" for the 3 months ending July - Chinese Android users generally rely on app stores from local tech giants Baidu (NASDAQ:BIDU), Qihoo (NYSE:QIHU), and Tencent (OTCPK:TCEHY). Meanwhile, the iPhone maintains a large share among higher-income Chinese users more likely to pay for apps and/or in-app purchases.
- In other Google news, Google is expanding its self-driving car tests from the company's home base of Mountain View to Austin, TX. The company has previously suggested it wants to bring a self-driving car to market by 2020, and that it wants to act as a hardware/software supplier for 3rd-party automakers.
- Google claims its cars have been involved in just 16 minor accidents in over 2M miles of driving, and that none of the accidents were its fault. However, researchers think some of the accidents are a product of Google's cars being too safe, perfectly following the letter of the law in a world where many drivers don't.
Wed, Sep. 2, 9:17 AM
Tue, Sep. 1, 6:38 PM
- Qihoo (NYSE:QIHU) is up 2.5% after hours after beating Q2 EPS estimates and posting in-line revenue. Like several other U.S.-traded Chinese companies, Qihoo has declined to provide guidance in its Q2 report, after doing so in prior quarters.
- Top-line performance: Online ad revenue +71.6% Y/Y to $293.9M. Internet value-added service revenue -16.4% to $122.2M. The former was boosted by search ad growth; the latter fell due to the government's suspension of online lottery sales.
- Metrics: Total users of Qihoo's PC products/services rose by 11M Q/Q and 18M Y/Y to 514M. Users of Qihoo's 360 Mobile Safe product rose by 21M Q/Q and 158M Y/Y to 799M. Monthly active users for Qihoo's PC browsers - they drive search/home page traffic - rose by 12M Q/Q and 43M Y/Y to 388M. Average daily clicks on Qihoo's 360 personal startup page fell by 13M Q/Q and 72M Y/Y to 677M.
- Financials: Gross margin fell to 76.2% from 79.3% a year ago. Operating expenses (non-GAAP) rose 27% Y/Y to $232.5M. Qihoo ended Q2 with $1.3B in cash/investments, and $1.6B in long-term debt.
- No decision is said to have been made regarding the $77/share going-private offer Qihoo received in June.
- Q2 results, PR
Tue, Sep. 1, 6:00 PM
Mon, Aug. 31, 5:35 PM
Fri, Aug. 28, 8:16 AM
- The investor group offering to buy out Qihoo 360 (NYSE:QIHU) is considering cutting its $9B bid after China's stock-market rout lowered valuations, WSJ reports.
- The Internet-services provider's shares closed at $51.28 on Thursday, one-third below the nonbinding $77-a-share offer made in June by its chairman, Zhou Hongyi, and a clutch of investors.
- The proposed buyout would be the largest take-private deal for a U.S.-listed Chinese company.
- QIHU -4.4% premarket
Wed, Aug. 26, 12:18 PM
- Chinese tech stocks are under pressure again, and Qihoo (QIHU -9.5%) is among the biggest casualties. 1.7M shares have been traded thus far vs. a 3-month daily average of 2.9M.
- Separately, Qihoo and Coolpad's Qiku JV has unveiled three Android phones: The high-end Q Terra, the low-end Q Luna, and an unnamed mid-range China-only model. The first two phones will begin shipping in China in September, before gradually reaching other emerging markets such as India, Brazil, and Russia.
- The high-end and mid-range phones will have 6" displays and dual 13MP rear cameras, and the low-end phone a 5.5" display and single 13MP rear camera. The high-end model sports a 2K resolution, and the others 1080p. Qiku is emphasizing the phones' security features, such as a dedicated VPN for payments and a kill switch for lost/stolen phones. Competition will be provided Samsung, Xiaomi, Huawei, Lenovo, and many others.
- Qihoo's Q2 report arrives on Sep. 1. Shares are now 38% below the $77/share buyout offer price provided by an investor group led by co-founder/CEO Hongyi Zhou. Doubts have been aired about whether the deal will hold.
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
Mon, Aug. 24, 9:19 AM
- Gainers: GAS +29%.
- Losers: VTL -79%. ACI -31%. BZUN -25%. WBAI -23%. JMEI -20%. BTU -17%. MDR -17%. CSIQ -17%. VIPS -16%. FIT -16%. SFUN -15%. LC -15%. PLUG -15%. EXXI -15%. QIHU -14%. MACK -14%. ACHN -14%. KNDI -13%. CYBR -13%. OHGI -13%. Z -13%. TCK -13%. JKS -13%. AVEO -12%. OAS -12%. WLL -12%. MCUR -12%.
Thu, Aug. 20, 11:01 AM
- The Shanghai and Shenzhen exchanges respectively fell 3.4% and 3% overnight as macro fears persist, and the Nasdaq is down 1.5% amid a general flight to safety. The Guggenheim China Tech ETF (CQQQ -3.2%) is once more near a 52-week low of $30.09 (set on July 8).
- Major Web/mobile decliners include Qunar (QUNR -9.1%), Vipshop (VIPS -4.9%), JD.com (JD -4.6%), Qihoo (QIHU -4.5%), ChinaCache (CCIH -6.6%), SouFun (SFUN -5.9%), Sina (SINA -5.7%), Weibo (WB -4.3%), Baozun (BZUN -9.3%), and Wowo (WOWO -3.2%).
- Jumei (down 22.3%), Youku (down 8%), and 58.com (down 4.9%) are seeing steep losses in spite of delivering Q2 beats after the close yesterday. Baozun reported yesterday morning, and Sina and Weibo Tuesday afternoon.
- ETFs: KWEB, QQQC, EMQQ
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