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3 Chinese Internet Stocks Make Moves After Earnings

Loading the player… Let’s take a look at five Chinese tech stocks that are showing compelling chart action: Ctrip, Qunar, Tencent, Alibaba and Baidu. Chinese online travel agency Ctrip ( CTRP ) reported fourth-quarter revenue that jumped 50% in local currency to beat views. Packaged tour revenue growth was lighter than expected. The company’s first-quarter revenue guidance widely missed expectations. Shares dropped as low as 39.52 in heavy volume, breaching its 50-day and 200-day lines in intraday trade. But as the stock pares its losses to a 0.5% drop to 42.42, it’s looking to find support at those levels. Ctrip is trading about 26% below its high reached last November. Ctrip owns a 45% stake in Qunar ( QUNR ), dubbed the “Kayak.com of China.” Qunar’s fourth-quarter results surpassed expectations late Wednesday. The company did not issue Q1 guidance. Shares seesawed Thursday, quickly reversing higher in the morning before paring their gains to a 1.6% rise. The stock is trading below its 50-day and 200-day lines. Those lines recently crossed, which is a bearish sign. Qunar is 35% below its late-December peak. Tencent’s ( TCEHY ) 45% quarterly revenue increase beat top-line estimates Thursday morning, boosted by strong growth in online games and social network services. The bottom line rose 21% in local currency but fell short as Tencent continues to aggressively invest in video and mobile. Shares surged 4% in light volume, hitting a nearly 4-month high. The stock is now trading 8% below its high of 22.15 reached last April, as it works on the right side of a consolidation pattern. Tencent’s rival Alibaba ( BABA ) is also consolidating. Alibaba, up 0.9% in afternoon trade, is trading 14% below a potential buy point at 86.52. Baidu ( BIDU ), a third Chinese Internet giant, will soon test autonomous cars in the U.S. – potentially rivaling Alphabet ( GOOGL )-owned Google. Baidu wants to introduce a commercial car model by 2018. Shares are working on a deep cup base with a 218.07 buy point. The stock is trading 18% below that level, edging higher Thursday afternoon.

Tencent Q4 Revenue Surges, Fueled By Gaming And Messaging

Strong growth in revenue from online games and social network services in China helped Tencent Holdings ( TCEHY ) deliver stronger than expected revenue when it reported fourth quarter earnings Thursday morning. Tencent reported revenue of $4.7 billion, beating the consensus estimate of $4.3 billion and up 45% year over year in local currency. Profit fell short as Tencent continues to aggressively invest in video and mobile. Tencent reported earnings per share minus items of RMB0.76, up 21% from a year ago. Equal to 12 cents at the current exchange rate, EPS missed the consensus estimate by a penny. Tencent is among China’s Internet leaders along with e-commerce king Alibaba ( BABA ) and search leader Baidu ( BIDU ). Other China Internet leaders include  e-commerce company JD.com ( JD ) and gaming company NetEase ( NTES ). Tencent shares traded over the counter in the U.S., were up 2.5%, near 20, in morning trading in the stock market today . Its primary stock listing is in Hong Kong, where it is a component of the blue-chip Hang Seng index. Revenue from online games, its largest revenue source, rose 33% to $2.46 billion, primarily driven by growth from smartphone games. The result was helped by an expanded game portfolio as well as higher revenue from PC games, thanks to popular titles and new games launched in 2015. Revenue from its social network and messaging services rose 37% to $1.1 billion. The increase was mainly driven by growth in subscription revenue as well as higher revenue from virtual item sales.

Tencent Expected To Maintain Hot Growth In China Internet Field

Tencent Holdings ( TCEHY ), China’s leader in messaging and gaming, is set to report Q4 earnings Thursday before the market open, with double-digit growth in both EPS and revenue expected by Wall Street. Tencent is among the China’s Internet leaders along with e-commerce king Alibaba ( BABA ) and search leader Baidu ( BIDU ). Other China Internet leaders include  e-commerce company JD.com ( JD ) and gaming company NetEase ( NTES ). The consensus estimate is for Tencent to report revenue of $4.26 billion, or 27.76 billion yuan, up 32% in local currency. Earnings per share minus items are expected to rise 32% as well in local currency, to 13 cents, or 0.83 yuan, as polled by Thomson Reuters. Tencent is China’s leader in online gaming, followed closely by NetEase. On Feb. 24 NetEase reported Q4 earnings that beat estimates. Tencent is also the leader in mobile chat services with its popular WeChat program. On Nov. 10, Tencent reported its strongest revenue growth in five quarters with its  Q3 earnings  report, though profit fell short of expectations, due mainly to aggressive investments in mobile. Tencent is traded over the counter in the U.S., with its primary stock listing in Hong Kong, where it is a component of the blue-chip Hang Seng index. On the OTC, Tencent was near 19.50, down a fraction, in afternoon trading in the stock market today . China e-commerce company JD.com reported Q4 earnings on March 1 that showed strong revenue growth and a lower-than-expected loss, defying concerns of economic weakness in that country. JD offers a wide range of electronics, apparel, home appliances, food and beverages and other general merchandise and competes in China’s burgeoning e-commerce arena against Alibaba. A year ago, JD formed a strategic partnership with Tencent.