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
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%.
Wed, Jun. 17, 9:17 AM
Wed, Jun. 17, 8:08 AM
- In partnership with investment firms Golden Brick Capital, China Renaissance, and Sequoia Capital, Qihoo (NYSE:QIHU) co-founder, chairman, and CEO Hongyi Zhou has offered to take the company private for a price equal to $77 per ADS - a 16.6% premium to Tuesday's close.
- As is the norm, Qihoo's board plans to form a committee to review the offer. Zhou's proposal appears to be the largest in a recent wave of going-private offers for U.S.-traded Chinese companies.
- Qihoo has jumped to $73.60 premarket.
Fri, Jun. 5, 12:24 PM
- In what's now a familiar story, U.S.-traded Chinese Internet stocks are posting big gains following an overnight rally in the Middle Kingdom: The Shanghai Composite rose 1.5%, topping 5,000 for the first time since 2008. The Nasdaq is nearly flat.
- Big gainers include Qihoo (QIHU +7.5%), Bitauto (BITA +5.8%), JD.com (JD +4%), YY (YY +4.9%), 58.com (WUBA +3.9%), Sina (SINA +7.8%), Weibo (WB +4.8%), 500.com (WBAI +9.9%), Jumei (JMEI +4.3%), Sky-mobi (MOBI +4.3%), iDreamSky (DSKY +5.3%), E-House (EJ +3.6%), and Leju (LEJU +4%). Qunar is also up strongly after downsizing and pricing a stock offering.
- Sina and Weibo are now respectively up 39% and 22% since Sina CEO Charles Chao announced on Monday he's investing $456M in Sina.
- ETFs: KWEB, CQQQ, QQQC
Tue, May 26, 10:01 AM
- Following a new $45M investment, Qihoo (QIHU -0.5%) owns 49.5% of its mobile phone JV with Chinese Android OEM Coolpad, up from a prior 45%.
- The JV, which (like Xiaomi) plans to primarily sell phones online, was first announced last December. Earlier this month, Qihoo/Coolpad announced the JV's phones would be sold under the Qiku label, and that three models would initially be offered. Aggressive pricing is promised.
Wed, May 20, 12:01 PM
- Up moderately in AH trading yesterday after beating Q1 estimates and providing in-line Q2 guidance, Qihoo (NYSE:QIHU) has tumbled towards $55 today.
- No downgrades have yet arrived. The Q1 slowdown seen in Qihoo's Internet value-added service revenue (up 7.1% Y/Y, after rising 112% in Q4) thanks to PC gaming weakness and online lottery suspensions (offsetting mobile gaming growth) could have some investors on edge.
- Shares now trade for less than 12x a pre-earnings 2016 EPS consensus of $4.75.
Tue, May 19, 7:17 PM
- Qihoo (NYSE:QIHU) is guiding for Q2 revenue of $435M-$445M (+37%-40% Y/Y), in-line with a $437.2M consensus and favorable at the midpoint.
- Lifting Q1 EPS: Operating expenses (non-GAAP) rose 35% Y/Y in Q1 to $209.7M, a marked slowdown from Q4's 84% and Q3's 110%, and below revenue growth of 45%. GAAP sales/marketing spend totaled $90.6M, G&A $27.8M, and R&D $112M. Also helping: Gross margin was 79.3%, down from 81% a year ago but up from Q4's 76.1%.
- Online ad revenue rose 75.1% Y/Y to $245.3M; Internet value-added services (IVAS - gaming-dominated) rose 7.1% to $133.7M. Rising search and mobile ad sales fueled the ad growth; IVAS revenue was hurt by "soft business trend in Web games" and the March suspension (following government mandates) of online lottery sales.
- User metrics: Total users of Qihoo products/services rose by 8M Q/Q and 24M Y/Y to 503M. Smartphone users of Qihoo's 360 Mobile Safe app rose by 34M Q/Q and 240M Y/Y to 778M. Monthly active users of Qihoo PC browsers rose by 15M Q/Q and 35M Y/Y to 376M. Average daily unique visitors for Qihoo's 360 browser startup page rose by 1M Q/Q and 11M Y/Y to 133M. Qihoo asserts its 360 Mobile Assistant app store "continued to maintain its leadership position in Android app distribution in China."
- QIHU +1.2% AH to $59.48.
- Q1 results, PR
Tue, May 19, 6:01 PM
Mon, May 18, 5:35 PM
Tue, May 12, 3:12 PM
- Today's notable tech gainers include insurance software/data exchange provider Ebix (EBIX +5%), Chinese polysilicon maker Daqo (DQ +6.9%), networking SRAM maker MoSys (MOSY +7.7%), enterprise mobility management software firm MobileIron (MOBL +6.3%), U.S. solar installer Solar3D (SLTD +4.3%), and Korean analog/mixed-signal chipmaker MagnaChip (MX +5.3%).
- Notable decliners include Chinese online retailers JD.com (JD -4.4%) and Vipshop (VIPS -5%), Chinese Internet mini-conglomerate Qihoo (QIHU -4.6%), and cloud online learning software provider 2U (TWOU -5.6%). The Nasdaq is down 0.2%.
- Daqo is now up 11% since last Friday's mixed Q1 report. Ebix is up 18% since delivering a Q1 beat last Friday. MobileIron's gains come after the company named well-traveled tech vet Simon Biddiscombe its interim CFO. Solar3D is rallying after issuing a PR that sings the praises a of an upbeat Bernstein report on solar cost declines.
- Qihoo and JD are more than reversing the Monday gains seen amid a Chinese Internet stock rally. 2U has now fully given back the gains seen last week following its Q1 beat.
- Previously covered: Rackspace, Everyday Health, magicJack, WidePoint, LivePerson, YY, STMicroelectronics, ChipMOS, iDreamSky, Leidos, Photronics
Mon, May 11, 2:37 PM
- The Shanghai exchange rose 3% overnight, continuing a torrid 2015 after the PBOC slashed its benchmark rate by 25 bps in a fresh easing move. A slew of Chinese Internet/mobile names are rallying while the Nasdaq barely budges.
- Gainers include Qihoo (QIHU +3.3%), Weibo (WB +3.4%), SouFun (SFUN +7.2%), Renren (RENN +3.1%), Cheetah Mobile (CMCM +10.6%), ChinaCache (CCIH +7.3%), Autohome (ATHM +4.9%), Xunlei (XNET +7.2%), Jumei (JMEI +7.3%), and Changyou (CYOU +6%).
- The massive rallies occurring in the absence of major company-specific news (particularly for thinly-traded names) have triggered comparisons with the Dot.com bubble. However, many U.S.-traded firms remain well below their 2014 highs, and their forward P/E and P/S multiples (though often not cheap) are generally well below those sported by Dot.com-era darlings.
Tue, May 5, 2:51 PM
- The high-flying Shanghai exchange was down 4.1% overnight amid reports local brokerages are tightening margin requirements. Over in NYC, the Nasdaq is down 1.6%, leading a broader market selloff.
- That's proving a bad combo for Chinese Internet stocks, many of which have shot higher in recent weeks. Major decliners include Qihoo (QIHU -8.9%), Sky-mobi (MOBI -10.6%), Leju (LEJU -6%), E-House (EJ -4.7%), Qunar (QUNR -4%), and Renren (RENN -4.6%).
- Baidu is also off sharply, thanks in part to a JPMorgan downgrade. Alibaba, which reports on Thursday, is seeing more modest losses.
- ETFs: KWEB, CQQQ, QQQC
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
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