BIDU, JD, BABA, NTES
Alibaba BABA, JD.com JD, Baidu BIDU, and NetEase NTES all opened Tuesday up over 2%, with Baidu jumping the most, over 4%. These stocks jumped at market open after Chinese Foreign Ministry spokesman Geng Shuang stated that China is "not afraid of fighting a trade war."
Investors should take a look at these Chinese tech stocks even as U.S. giants continue on a positive streak, with Alphabet GOOGL up over 5% over the past 5 days and both Amazon.com AMZN and Apple AAPL up over 10%.
Alibaba Group is a Chinese tech group that specializes in e-commerce. Essentially the Chinese version of Amazon, Alibaba’s stock had soared prior to the trade war, gaining well over 40% from January 2 to May 3. Alibaba stock took a hard hit when trade war fears were renewed in early May, dropping off from its 6-month high of $195.26. After bottoming out around $148.29 on May 31, the stock has recovered nicely. Its gained 9.55% in the past 5 days.
JD.com is China’s largest online retailer and the country’s biggest internet company by revenue. The company, similar to Alibaba, also draws many comparisons to Amazon. JD’s stock is up 33% YTD, even after falling over 15% from May 16 to May 31. The stock currently sits at $27.89 after starting the year at $21.27.
Baidu Inc. is a Chinese tech company that specializes in Internet related services and artificial intelligence. It has the second-largest search engine in the world and the largest in China, capturing over 75% of the country’s search engine market share. Baidu’s stock has done very poorly this year, with a YTD loss of 27%. Baidu’s stock took a very hard hit in mid-May, tumbling 23% from May 16 to May 20. Since then, it has started to recover slightly, gaining over 4% today and over 7% the past 5 days.
NetEase Inc. is a Chinese internet and video company. As one of the biggest internet and video game companies in the world, NetEase provides services for email, e-commerce platforms, and mobile and PC video games. YTD, NetEase stock is up 13.75% putting its price at $267.95 after starting the year at $229.74. Much of this year-to-date gain came after the stock fell 14% from May 3 to June 3. The past 5 days have brought over 9% growth for the stock as it recovers from its trade war drop.
The overall tech market has made a fascinating turnaround after a terrible May. These gains have been highlighted by the biggest tech companies in the U.S. and are now also being seen in the largest Chinese tech firms. A recovering tech market, along with the Chinese government’s confidence in taking on Trump in the trade war, could give these companies a positive outlook for the coming days and weeks.
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