Tag Archives: ctrp

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.

Baidu Travel Service Qunar Reportedly Launching Airline

Chinese Internet search leader Baidu ‘s ( BIDU ) online travel service Qunar Cayman Islands ( QUNR ) has reportedly confirmed that its travel operation is preparing to launch an airline, in conjunction with two other China-based companies. The airline startup, to be operated by Qunar and a pair of Shenzhen-based firms, will mainly operate domestic and short-haul international flights to nearby countries, with Qunar leading online sales efforts, said reports by Marbridge Consulting and Travel Daily Media . Competition sparked the move, with nine airlines indicating that they would be temporarily suspending their cooperation with Qunar since the end of 2015 due to a dispute over passenger charges, according to reports by Marbridge and Reuters . “Airlines are also shifting their strategy toward selling tickets directly to consumers in an effort to reduce marketing costs,” said Marbridge. “For example, China Southern Airlines ( ZNH ) announced on Feb. 23 that it was cutting the price of domestic flights bought through its own website by 60%. These actions by Chinese airlines were a key catalyst in Qunar’s decision to set up its own airline, according to Chinese news media reports.” Qunar — nicknamed the “Kayak.com of China” — operates in a rapidly growing travel search market, but price wars and competition have dented its profits and profit margins. The number of Chinese leisure travelers going overseas topped 100 million in 2014, Reuters reported, saying foreign travel is expected to grow 10% this year despite China’s slowing economic growth. Qunar posted Q3 revenue of $208.5 million, up 164% from the year-earlier quarter, but its adjusted net loss more than doubled, to $98 million, as it invests in marketing, product sourcing and product development. But both the top and bottom lines beat the consensus view of analysts polled by Thomson Reuters by about 11%. Qunar reported a net loss of 87 cents per American Depositary Share. In October, Baidu-backed Qunar announced a share swap with Ctrip.com ( CTRP ), another leading Chinese online travel agency. Baidu stock was down 2% in afternoon trading in the stock market today , near 176, while Ctrip.com was down 3%, and Qunar was down a fraction.

Qunar, Whose Owners Include Baidu, Reportedly Launching Airline

Online travel service Qunar Cayman Islands ( QUNR ), whose owners include Chinese Internet search leader Baidu ( BIDU ), has reportedly confirmed that its travel operation is preparing to launch an airline, in conjunction with two other China-based companies. The airline startup, to be operated by Qunar and a pair of Shenzhen-based firms, will mainly operate domestic and short-haul international flights to nearby countries, with Qunar leading online sales efforts, said reports by Marbridge Consulting and Travel Daily Media . Competition sparked the move, with nine airlines indicating that they would be temporarily suspending their cooperation with Qunar since the end of 2015 due to a dispute over passenger charges, according to reports by Marbridge and Reuters . “Airlines are also shifting their strategy toward selling tickets directly to consumers in an effort to reduce marketing costs,” said Marbridge. “For example, China Southern Airlines ( ZNH ) announced on Feb. 23 that it was cutting the price of domestic flights bought through its own website by 60%. These actions by Chinese airlines were a key catalyst in Qunar’s decision to set up its own airline, according to Chinese news media reports.” Qunar — nicknamed the “Kayak.com of China” — operates in a rapidly growing travel search market, but price wars and competition have dented its profits and profit margins. The number of Chinese leisure travelers going overseas topped 100 million in 2014, Reuters reported, saying foreign travel is expected to grow 10% this year despite China’s slowing economic growth. Qunar posted Q3 revenue of $208.5 million, up 164% from the year-earlier quarter, but its adjusted net loss more than doubled, to $98 million, as it invests in marketing, product sourcing and product development. But both the top and bottom lines beat the consensus view of analysts polled by Thomson Reuters by about 11%. Qunar reported a net loss of 87 cents per American Depositary Share. In October, Baidu-backed Qunar announced a share swap with Ctrip.com ( CTRP ), another leading Chinese online travel agency. Baidu, which had been Qunar’s majority owner, now owns 3% of Qunar, a Baidu spokesman told IBD. The spokesman said Baidu now owns 25% of Ctrip, which owns 45% of Qunar. Baidu stock was down 2% in afternoon trading in the stock market today , near 176, while Ctrip.com was down 3%, and Qunar was down a fraction.