67 WALL STREET, New York - May 10, 2013 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Internet Infrastructure and Services Consolidation - Social Networking Economics -
Companies include: Baidu, Inc. (BIDU), Sina Corp. (SINA), Google Inc. (GOOG) and many more.
In the following excerpt from the Internet Services Report, an expert analyst discusses the outlook for the sector for investors:
TWST: What are some of the differences between the U.S. and Chinese Internet sectors that U.S. investors don't always fully comprehend?
Ms. Meng: The key difference, of course, that the Internet penetration rate in China is quite low, around 42%. In the U.S., it is almost double that level, so the growth potential is still quite large in China. That said, the Internet companies in China usually have similar business models, as compared to the U.S., with one or two exceptions.
So when U.S. investors are looking at Chinese companies, they want to look for, or they are looking for similarities more than differences, and that's why they feel more comfortable with certain business models, because they can use some kind of benchmark from the U.S. case.
For example, Baidu (BIDU) and Google (GOOG): Many people are benchmarking these two companies together because of the search engine business model. In our China Internet sector research published in early January, "China Internet: Long Term Demographic Changes Bear Far Reaching Implications," we discussed the trends driving the next long-term, big growth potential in e-commerce and mobile Internet monetization. In these areas the adoption rate in China is still early-stage, but we believe will rise significantly along with ...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.