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Chinese internet companies grow their users bases and their ability to monetize them, could result in rapid revenue and earnings growth.
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Investors may have also noticed that the overall technology industry has proven sturdy amid the extreme challenges created by the coronavirus pandemic. Three that fit that description are CrowdStrike (NASDAQ: CRWD), Baozun (NASDAQ: BZUN), and Glu Mobile (NASDAQ: GLUU). It's no secret that a growing number of businesses are transitioning their key operations to the cloud.
A look at the shareholders of Baidu, Inc. (NASDAQ:BIDU) can tell us which group is most powerful. Institutions will...
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 16x, you may...
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Standard Chartered Bank (Hong Kong) Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Marko Kolanovic, JPMorgan’s quant expert, sees equities as both expensive and cheap at the same time. Yes, he acknowledges stocks are priced at or near their all-time highs in absolute terms, and compared to earnings – but in relation to bonds, stocks are undervalued. And with that comparison tied directly to bond yields, which are historically low and unlikely to see gains any time soon, Kolanovic believes that stocks will act as cash magnets in 2H20.He notes that the mega-cap growth stocks are hitting new record highs again – see Apple for a prime example – and that they are benefitting from fears of a second wave of coronavirus. But Kolanovic adds that the market isn’t estimating the effect properly. While cases are rising sharply in the three of the largest states (California, Texas, Florida), death rates are remaining low. This suggests that the virus is becoming less dangerous – and that when the markets collective wisdom realizes this, value stocks are going surge.In fact, in Kolanovic’s view, a late summer surge “could result in a rapid momentum sell-off and value rally.” The trick now will be finding the value stocks that are primed for that gain.Fortunately, Kolanovic’s colleagues in JPM are on the case. They have pinpointed three stocks showing signs of great value – relatively low cost now, with serious upside potential for the coming year. We’ve used the TipRanks database to pull up the details, and find out what makes JPM's picks so compelling.JOYY, Inc. (YY)We’ll start in China, with JOYY, a major social media and online digital streaming platform. It’s easy to overlook China, from the West, as the country is highly insular by both government policy and cultural history, but we shouldn’t forget that China, with population near 1.4 billion, has an ‘online population’ of almost 800 million. That’s double the population of Europe, and more than double the population of the United States – and that is only China’s domestic market. Add in China’s moves toward the global stage, and the possibilities are staggering.That can be seen from YY’s share growth. The stock is up 50% year-to-date; a look at the share price chart shows that YY simply shrugged off the ‘corona quarter.’ First quarter net revenue reached $1.01 billion, a 49% year-over-year gain. Strong growth across the company’s online subsidiaries powered the gains, as monthly average users (MAU) hit 520.1 million. A major part of JOYY’s growth in recent months has come from Singapore’s Bigo live streaming platform. The Chinese company bought Bigo in May of last year, in a move valued at $2.1 billion. Since then, Bigo has become the world’s fifth largest site for streaming apps.Bigo was on JPMorgan's Alex Yao’s mind when he reviewed JOYY stock. The 5-star analyst noted, “[W]e believe the current share price hasn’t fully factored in Bigo’s growth potential and we expect strong Bigo revenue growth in 2Q20 and turning profitable in 4Q20 will be near term share price catalysts...”To this end, Yao rates the stock a Buy, and supports that by raising his price target to $125. That new target implies a strong upside potential of 57% for the year ahead. (To watch Yao’s track record, click here)It’s clear that Wall Street agrees with JPM’s analysts about the quality of YY stock. The shares have a unanimous Strong Buy consensus rating, based on 7 Buy reviews. The stock is selling for $81.45, and the average target of $104.17 suggests a 28% upside potential. (See YY stock analysis on TipRanks)Cloudflare, Inc. (NET)Next up is Cloudflare, a multi-billion-dollar online network operator. The company offers content delivery network services, web infrastructure and website security, and domain name server services. Cloudflare say revenues rise to $287 million last year, and 1H20 saw its EPS net loss narrow. The current business environment, with more people working remotely from home, and with businesses relying more than ever on teleconferencing, have put Cloudflare’s products and services in high demand.The Q1 earnings report shows that, as far as possible. NET’s revenues surged 48%, reaching $91.3 million and beating the forecasts. Cloudflare reported some 250,000 new customers in the quarter, putting the company’s total customer count at 2.8 million. Sales grew 44% year-over-year in the US – and an even more impressive 58% in Europe. US sales are 40% of the company’s total. Covering the stock for JPM, 5-star analyst Sterling Auty describes the company’s portfolio of products as ‘gaining traction’ in current conditions. He writes of the stock, “[We] expect the company to convert its free Teams offering over to a paid solution in the coming quarters and that has the potential of generating additional revenue tailwinds… we believe that there is ample upside opportunity to the revenue results over the next several years to generate an attractive free cash flow profile…”Auty’s $52 price target implies a 48% one-year upside, and fully supports his bullish outlook. (To watch Auty’s track record, click here)Like many upwardly mobile tech companies, Cloudflare’s stock has pushed past its average price target in recent trading. The stock is currently priced at $36.75; Auty’s outlook suggests that Wall Street’s analysts may have to readjust their targets here. In the meantime, NET has a Moderate Buy rating from the analyst consensus, based on 8 Buys and 4 Holds. (See Cloudflare stock analysis on TipRanks)Ormat Technologies (ORA)Not all tech is digital tech. The last company on our list, Ormat Technologies, is an alternative and renewable energy provider, based in Nevada and operating around the world. The company boasts over 150 power plants generating more than 2,000 megawatts of power in 30 countries. Ormat is a major provider of geothermal energy in Guatemala, Honduras, Kenya, and the US.No matter how the economy goes, we all need power – and Ormat used that fact to keep earnings up during the corona crisis. The company’s Q1 results beat the forecasts, coming in at 51 cents per share. Revenues, however, slipped year-over-year by 3.5%, to $192.1 million.That slip is reflected in the share value, which is down 17% year-to-date. ORA has underperformed the broader markets, which ironically increases the value potential of the stock. The company’s electricity segment – about half of the total business – features high margins, giving the company a strong foundation for future income.JPM’s 5-star analyst Mark Strouse has this in mind when he writes, “We view ORA as one of the higher-quality stocks in our Alt Energy coverage universe, based on relative balance sheet strength, earnings power and visibility that originates in the shift toward ownership and operation of a diverse portfolio of geothermal projects.”Strouse upgrades his stance on ORA shares, raising them from Neutral to Buy. His price target, at $82, indicates room for a 32% upside. (To watch Strouse’s track record, click here)ORA has two recent analyst reviews, one Buy and one Hold, making the consensus view a Moderate Buy. (See ORA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]
Rating Action: Moody's affirms ratings of Dalian Wanda Commercial Management and Wanda HK; outlook stable. Global Credit Research- 13 Jul 2020. Hong Kong, July 13, 2020-- Moody's Investors Service has ...
A Relative Strength Rating upgrade for Autohome shows improving technical performance. Will it continue?
In the updated daily bar chart of JD, below, we can see that prices have been in an uptrend from early October. The On-Balance-Volume (OBV) line bottomed in October and its steady rise confirms the price gains and supports further gains. In the weekly bar chart of JD, below, we went back five years to show how prices have broken out over the highs of 2017-2018.
NetEase (NTES) saw a big move last session, as its shares jumped more than 6% on the day, amid huge volumes.
WeRide, a Chinese autonomous vehicle startup, said on Friday it has become the first autonomous company to start fully driverless vehicle testing in China, as the world's biggest auto market accelerates development of autonomous technologies. Three-year-old WeRide, backed by Nissan, Renault and Mitsubishi, said in a statement that it started tests on Wednesday on open roads in a designated area of Guangzhou after the southern Chinese city granted permission. In China, companies such as Toyota-backed Pony.ai, Baidu Inc, and Didi Chuxing are also testing autonomous cars, but all with one or two safety staff onboard.
Baozun Inc. (BZUN) closed at $45.99 in the latest trading session, marking a -0.33% move from the prior day.
Is (BZUN) Outperforming Other Computer and Technology Stocks This Year?
Video games have become a huge business. That’s raised interest in video game stocks, including those that are considered esports stocks. Top names include Activision, EA and Take-Two.
Robin Li, the co-founder, chairman, and chief executive officer of Baidu, Inc. (NASDAQ: BIDU), today set out his elaborate vision for the future of AI during a keynote speech at the World Artificial Intelligence Conference (WAIC). Li said that new infrastructure will accelerate the intelligent transformation of various industries, with Baidu playing a key role in this process through its open-source AI platforms that can empower other organizations to adopt AI applications. Li also believes that the development of AI is only in the middle stage of a three-stage historical trajectory, but that AI has already demonstrated its potential to transform economies and societies.
(Bloomberg Opinion) -- Time will be the next frontier in India’s digital battlefield; dollars will follow the hours consumers spend online.India has left a void in their day by banning 59 Chinese apps after a border dispute with its northern neighbor led to violent clashes. The video-sharing platform TikTok, which became a craze in towns and villages as a medium of expression, is gone. So are its smaller cousins, like Bigo Live and Likee.What can fill the gap? Thanks to the world’s cheapest data charges of 9 cents per gigabyte, Indian smartphone users are guzzling content for six hours plus. For local startups like Glance, which offers games, news and video on the mobile lock-screen, the ban on Chinese competition is a chance to add to its tally of 100 million daily active users. The country’s youth bulge also makes it a perfect occasion for homegrown education technology unicorns like Byju to scale up.But the ultimate prize may go to super-apps that meld content and commerce in the 16 Indian languages besides English that boast anywhere between 5 million to half a billion speakers. To not have to download multiple apps to do different things will save phone memory, an important consideration for those who access the internet on low-end devices. Tencent Holdings Ltd.’s WeChat, which offers everything from messaging to gaming and financial services, provides a successful template. Chinese users are also online for six hours a day, mostly to browse content, particularly social media. Although only 4% of their time is spent on e-commerce, it’s enough to drive $1.5 trillion in annual online sales. The smaller Indian market, with online sales of $40 billion, will want to copy the playbook. The most obvious super-app candidate is billionaire Mukesh Ambani’s Jio Platforms Ltd., a four-year-old startup with an equity value of $65 billion, including more than $15 billion recently raised from investors including Facebook Inc., KKR & Co. and Silver Lake Partners. Before Jio eventually seeks a listing on Nasdaq or the New York Stock Exchange, Ambani would probably want it ready as a carriage-content-and-commerce powerhouse for half-a-billion people.Jio’s 4G telecom service already has roughly 400 million subscribers, though they currently don’t even pay $2 a month. The trick to a $100 billion-plus initial public offering would lie in using the partnership with Facebook to introduce features such as the WeChat mini-program via the popular WhatsApp messaging service. It lets users book hotels, order taxis, explore augmented reality to try on a new L’Oreal beauty product, or test-drive a Tesla — without leaving WeChat. When it comes to building product awareness and interest, these embedded mini-apps in China are now a fourth as effective as regular online stores run by JD.com Inc. and Alibaba Group Holding Ltd., according to McKinsey & Co. They will offer brands in India a chance to sell more — and more profitably — even in remote towns. The consulting firm found that younger consumers in smaller Chinese cities give more weight to advice from social-media influencers and referrals by friends than their counterparts in larger metropolitan areas. This will probably hold true for India as well. As for the actual commerce, JioMart, Ambani’s new e-commerce platform, would take orders and — if the regulator permits it — accept payments via WhatsApp. Staples could be delivered by traditional neighborhood stores, with Jio helping connect them to buyers. For discretionary products, Ambani may use his Reliance Retail Ltd., already the country’s largest bricks-and-mortar retailer. It won’t be too hard to grease the wheels of super-app commerce with credit. Local lenders will be desperate for a new source of balance-sheet expansion after absorbing inevitable losses from the pandemic and lockdown. Still, the road to satisfied digital customers will be long and bumpy because of India’s creaky infrastructure. Keeping users hooked with novel content will therefore be crucial. Facebook is building a new version of Quest virtual reality headsets; the Silicon Valley firm is also acquiring studios that make VR games. Jio, which wants its set-top box to support online gaming, could find opportunities for collaboration.However, the main entertainment fare will still be cricket and Bollywood. Last year, Ambani promised Jio First Day First Show — movies streamed to broadband customers on the day of their theater release. With Covid-19 shutting down cinemas, producers in India need digital alternatives; audiences need their fix. Although Ambani appears to be ahead, his won’t be India’s only super-app. Amazon.com Inc. has pledged to invest $5.5 billion in the country, while Walmart Inc. has plowed in $16 billion to acquire local e-commerce leader Flipkart Online Services Pvt. Potentially, they — or Alphabet Inc.’s Google — could seek telecom and digital media partners.Western tech firms were broadly shut out of China’s digital revolution. In India, they’ll join the fray, hoping for insights that will come in handy in other emerging markets. But India will still prefer local control over the super-apps. Six hours a day of 1.3 billion people — and all the data that flows from it — is a coveted resource, something politicians won’t want slipping out of their sphere of influence. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
The Zacks Analyst Blog Highlights: JD.com, Tencent, Alibaba and Sohu.com
Baidu, Inc. (Nasdaq: BIDU) today announced that it is providing advertisers direct access to Microsoft’s (Nasdaq: MSFT) MSN native desktop inventory via Baidu’s MediaGo ad platform. The agreement enables advertisers around the world to reach consumers in the United States through premium placements on multiple MSN properties.
Tencent's (TCEHY) aggressive steps, including the launch of its new studio, are expected to boost its competitive position against Google, NVIDIA, Amazon, NetEase and Microsoft in gaming space.
As of late, it has definitely been a great time to be an investor in Baozun Inc. (BZUN).
(Bloomberg) -- Traveloka, Southeast Asia’s biggest online travel startup, is close to raising fresh funds at a private-market valuation of about $2.75 billion -- roughly 17% less than its most recent fundraising, according to people familiar with the matter.The Jakarta-based firm is in advanced negotiations with new strategic investors such as Siam Commercial Bank Pcl and Richard Li’s FWD Group Ltd., as well as existing backers GIC Pte. and East Ventures to secure about $250 million, the people said, asking not to be named because the discussions are private. The primary fundraising will be at a $2.75 billion valuation, while a secondary sale will be at $2.4 billion, one of the people said. Traveloka counts online travel site Expedia Group Inc. and JD.com Inc. among its existing backers.Terms of the fundraising could still change, they said. A Traveloka representative declined to comment.Traveloka, which has had its business hammered by the coronavirus fallout, is one of the first unicorns in Southeast Asia to experience a down-round -- raising funds at a lower valuation than the previous funding round. It reflects the sharp drop in business after lockdown orders halted flights and travel. Since the outbreak, the company has cut an unspecified number of positions, including about 80 jobs in Singapore in April.The travel industry is witnessing a sharp decline in business since the spread of the coronavirus. Expedia saw its total gross booking fall 39% in the first quarter, while its share price has dropped 21% this year. Vacation-rental startup Airbnb Inc. cut 25% of its workforce and raised an additional $2 billion in debt to help weather the downturn.Despite the slump, some Traveloka investors are betting on the travel industry’s eventual recovery, led by a rebound in tourism within countries, and a series of cost-cutting measures at the company, one of the people said. In Vietnam -- a model case in containing the pandemic with fewer than 400 cases and no deaths -- domestic travel has restarted.With a population of 570 million and growing middle class, Southeast Asia’s six largest economies are expected to see their online travel market more than double from $34 billion in 2019 to $78 billion in 2025, according to the most recent report by Google, Temasek and Bain released in October.Read more: Southeast Asia’s No. 1 Travel App Jumps on Fintech BandwagonSince its inception in 2012, Traveloka’s valuation climbed to $3.3 billion, according to the people. It has expanded across Southeast Asia, making it easier for consumers to book flights and hotels across countries. Like other startups in the region, Traveloka followed a popular playbook of providing multiple products and extending into financial services to complement its travel, accommodation and lifestyle offerings.Traveloka Chief Executive Officer Ferry Unardi said in an interview at the New Economy Forum in Beijing in November that the company is considering an initial public offering in Indonesia and in the U.S. in two to three years.Traveloka Looking to Grow Into Lifestyle, Financial Services: CEO (Video)(Adds forecast of Southeast Asia’s digital market in the seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.