Tag Archives: sina

NetEase, Sina, Weibo Ready For China Earnings Closeup

Continuing a string of earnings reports from China Internet companies, NetEase ( NTES ), Sina ( SINA ) and Weibo ( WB ) are set to report first-quarter earnings after the close Wednesday. JD.com ( JD ), one of China’s largest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among many U.S.-traded techs that fell Monday after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, reported revenue of $8.4 billion, slightly above the consensus and up 48% in local currency year over year. But its Q2 guidance was slightly below consensus. China e-commerce giant Alibaba ( BABA ) reported fiscal Q4 earnings  last Thursday. Alibaba showed a 30% increase in revenue to $3.75 billion, beating the Wall Street consensus and marking the company’s highest growth rate in the past four quarters. China gaming company NetEase is expected to see earnings rise 55% in local currency to $2.29 a share, according to a poll by Thomson Reuters. Revenue is expected to jump 115% to $1.2 billion, year over year. NetEase stock, which is down 26% this year, was trading near 143.60, up 3%, during afternoon trading in the stock market today . NetEase is hitting resistance at its 50-day line Sina, which operates the largest Chinese-language Web portal, is expected to post a loss of 4 cents a share, swinging from a 4 cent profit year over year. Revenue is expected to rise 5% in local currency to $277.5 million. Sina stock, which hit a low this year of 39.58 on Feb. 11, was trading near 49.50, up 1%. Weibo, which operates a microblog site similar to Twitter ( TWTR ), is projected to show an 18% increase in revenue to $113.6 million. Weibo is projected to see earnings of one penny a share, vs. nearly break-even a year earlier. Weibo was a part of Sina before its IPO in 2014, and Sina remains a majority shareholder. Weibo this year hit a low of 12.09 on Feb. 21. Weibo stock was near 23.25, up 8%.

China Tech Stocks Fall As Shanghai Nears Lows On Growth, Debt Fears

U.S.-traded shares of China technology companies were mixed Monday after the Shanghai exchange had another big decline Monday, with one market technician warning that the index could re-test lows set in January-February. Ralph Acampora, analyst at Altaira Capital Partners, tweeted that the Shanghai exchange “is now expected to retest its January/February 2016 low at 2,638.” Baidu ( BIDU ) stock was down more than 3% in early trading in the stock market today . Baidu announced new measures amid a probe into sponsored advertising by health care outfits. JD.com ( JD ) stock was down nearly 10%, though the e-commerce company early Monday posted Q1 revenue that rose 47% from the year-earlier quarter. Qihoo 360 Technology ( QIHU ) stock was off 3%, shares in Sohu.com ( SOHU )  slipped 2%, while NetEase ( NTES ) stock edged down about 1%. NetEase reports earnings on Wednesday. Alibaba Group ‘s ( BABA ) stock rose fractionally Monday, while Sina ( SINA ) stock was down more than 4% and  Ctrip.com International ( CTRP ) nearly 3%. The Shanghai exchange fell 2.8% on Monday to 2832.11, after sliding last week. IBD Take: YY among the China Internets falling; IBD Stock Checkup can help you assess. The People’s Daily, the government’s official newspaper, on Monday warned that China’s economic recovery might stall. The economic trend may be “L-shaped,” meaning flat growth, rather than a stronger “U-shaped” recovery, said the People’s Daily. Even so, the article said the government will not use excessive investment or rapid credit expansion to stimulate growth. One concern among China observers is the country’s widespread debt. Bank of America/Merrill Lynch, in a research report published Monday, referred to global investor George Soros’ remarks in April that China’s situation marks an “eerie resemblance” to the U.S. in 2005 to 2008, just before the financial crisis sparked the Great Recession. But BofA sees what it calls a better comparison, looking at Japan in the 1990s. “While there may be some parallels between the precrisis situation in the U.S. and China today, there arguably are even more important differences, including the nature of the increase in credit, extent of contagion risks to the broader economy, and scope for government policy to preclude or offset,” said the report. “Indeed, if we had to identify a historical antecedent for the current situation in China, a more applicable choice might be Japan during the 1990s. “That said, China’s unique situation belies any simple comparison with past crises in either developed or emerging markets, and warrants its own more in-depth investigation.” Another concern is increased scrutiny on the number of U.S.-listed China tech companies that plan to go private or delist in the U.S. in favor of China markets, where they have expected they could see higher valuations. China has said it is “reviewing market concerns about a record wave of businesses seeking higher mainland valuations with relistings there,” Bloomberg reported Sunday . Among companies with such plans, Momo ( MOMO ) stock was down 11% early Friday, while YY ( YY ) was down 9%.

China’s Alibaba Bucks Baidu, JD, Tencent In Acquisition, Investment

E-commerce giant Alibaba Group ( BABA ) is investing $1.9 billion in two deals confirmed in the past two days, holding firm to its strategy of growth through acquisition and boosting local services in China. On Wednesday, Alibaba said it will invest $900 million into Shanghai-based Ele.me, while an affiliate, Ant Financial, will kick in another $350 million. Ele.me is a leading online food-delivery company. As part of its global expansion, Alibaba announced Tuesday it will acquire a controlling stake in Singapore-based Lazada, a leading e-commerce platform in Southeast Asia, for an investment valued at $1 billion. The deals upped the ante in an ongoing war among China’s four largest Internet giants — Alibaba, JD.com ( JD ), Baidu ( BIDU ) and Tencent Holdings ( TCEHY ). Alibaba’s investment and acquisition strategy focuses on increasing user acquisition and engagement, improving customer experience and expanding products and services, a company spokesman said. In some cases it may begin with an initial minority investment and followed by business cooperation, he said. Related to its investment in Ele.me, Alibaba and Ant agreed last June to invest nearly $1 billion in Koubei.com, a joint venture initially targeting the market for ordering meals online in China, but which is now focused on local delivery services. Ele.me will assume Koubei’s online food delivery service, a fiercely competitive market that includes Baidu. Alibaba has invested aggressively to expand China’s fast-growing local services market, also known as online-to-offline, or O2O retailing, which brings brick-and-mortar retailers into the digital economy. O2O is expected to figure heavily in the future of retailing and consumption in China. It’s seen as a better way for Chinese consumers to research and buy goods and receive them quickly, with smartphones playing a key role. Alibaba’s Southeast Asia Play While growing its home market, the investment in Lazada expands Alibaba outside China. Lazada operates e-commerce platforms in Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam. “Globalization is a critical strategy for the growth of Alibaba Group today and well into the future,” said Michael Evans, Alibaba’s president, in a statement announcing the deal. Of the four largest Internet companies in China, Alibaba has been investing the most money in growth. The No. 1 provider of e-commerce services in China, Alibaba last year invested  heavily in acquisitions. That included $4.63 billion for about a 20% stake in Suning, one of the largest consumer-electronics retail chains in China. The investment in Suning is part of a Alibaba’s O2O efforts. Tencent and Baidu have teamed with Dalian Wanda, one of China’s largest property and entertainment conglomerates, to create O2O platforms. JD greatly expanded one of its O2O operations last August when it invested $700 million in Yonghui Superstores, a supermarket chain with more than 350 stores. While expanding its dominance in e-commerce for both consumers and businesses, Alibaba is also engaged in financial services, cloud computing, Big Data analytics and Hollywood-style entertainment, in addition to O2O, ride hailing and food delivery services. Alibaba has reportedly invested about $400 million in Lyft, the U.S.-based ride sharing company that competes with Uber. Last week, Alibaba completed its acquisition of online video provider Youku Tudou for about $3.7 billion. Alibaba had already owned about a one-fifth stake. Speculation has also surfaced that Alibaba might boost its stake in Weibo ( WB ), the rising social media service similar to Twitter ( TWTR ). Weibo was spun off in 2014 by Shanghai-based Web portal Sina ( SINA ), which still owns the majority of Weibo’s stock. Alibaba has a 20% stake.