|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||111.60 - 113.49|
|52 Week Range||106.80 - 265.73|
|Beta (3Y Monthly)||1.58|
|PE Ratio (TTM)||8.71|
|Earnings Date||Jul 29, 2019 - Aug 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||163.27|
The flurry of new highs notched by the S&P 500 is perhaps the clearest evidence of the decade-long golden age stocks we've been living in. Since the disastrous days of '08 and bottom carved in the Spring of '09, equities have grown 343%. But not all companies have been boosted during the buying binge. Some sad saps remain stocks to sell.Today we'll highlight three such losers.These stocks to sell weren't hard to find. Indeed, in a day of high flying equities tagging record-setting prices, all you have to do is look for the few stocks that are hitting new lows. There's a stink about them. Maybe they have deteriorating fundamentals. Or perhaps they find themselves in an out-of-favor sector. In any case, they're worth steering clear. Or you could deploy bearish trades to profit from their pain.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks Top Investors Are Buying Now Let's take a closer look at three deathly looking stocks to sell. Baidu (BIDU) Click to Enlarge Source: ThinkorSwim Since peaking last year at $284.22, Baidu (NASDAQ:BIDU) shares are down over 53%. The unwinding accelerated after May's dismal earnings report sent the shares plunging around 20% amid massive volume. Since then, BIDU stock has proven altogether unable to lift itself from the mat.And with the specter of another certain earnings announcement looming later this month, I think the selling could begin anew as shareholders who were holding out for a recovery finally jump ship.To bank on pre-earnings jitters, we could buy put options. The Aug $110 puts can be purchased for around $3.80 and offer a lower cost and limited risk way to speculate on additional weakness. 3 Stocks to Sell: Bed Bath & Beyond (BBBY) Click to Enlarge Source: ThinkorSwim Remember the powerful recovery Bed Bath & Beyond (NASDAQ:BBBY) staged over the first four months of the year? We're talking about the robust 87% ramp that pulled-in bargain hunters and spectators willing to bet on a turnaround.Well, it's gone. All of it.And this week, BBBY stock officially broke below the December low that marked the beginning of its once-promising ascent. That means every single person who got suckered into banking on the resurrection is now cursed with a losing position. And they're all likely sellers at higher prices, which is otherwise known as overhead supply.Couple the flawed fundamentals with terrible technicals and you have a toxic brew pointing toward lower prices.Unfortunately, with BBBY already down sharply after last week's earnings release, it's tough to recommend new bear trades here. But I would be a seller into any strength. * 3 Food Stocks to Buy for Fast and Big Profits The depths beckon. 3 Stocks to Sell: Halliburton (HAL) Click to Enlarge Source: ThinkorSwim Oil stocks have been poison to portfolios in recent years. And perhaps none best illustrates the damage inflicted than Halliburton (NYSE:HAL). Just last year the oil service titan was flirting with $60. Now it's threatening to break into the teens.The downtrend has taken a few pit stops along the way, but overall the descent has been relentless. Its latest two-month pause just gave way to renewed selling, and this morning HAL stock is working on its fifth straight down day. The next earnings report is right around the corner on July 22nd and could provide some relief, but I doubt it.If you're willing to bet with bears into the event, then buy the Sep $22.50/$20 bear put for around $1.15.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 3 Stocks That Look Like Death appeared first on InvestorPlace.
U.S. stock futures are hovering near unchanged, continuing their streak of sleepy summer opens. The talk of the town is Netflix (NASDAQ:NFLX) earnings, which missed revenue estimates and has the stock down 11% premarket.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.18%, and S&P 500 futures are lower by 0.05%. Nasdaq-100 futures have shed 0.07%.In the options pits, calls outpaced puts by a modest margin, while overall volume ticked slightly above average levels. Specifically, about 18.5 million calls and 15.6 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, over at the CBOE, the single-session equity put/call volume ratio rose to 0.67 -- a one-month high. The 10-day moving average continued its sideways drift at 0.60.There were three marquee stocks heavily favored by options traders on Wednesday: Baidu (NASDAQ:BIDU), Netflix and Bank of America (NYSE:BAC).Let's take a closer look: Baidu (BIDU)Ever since May's earnings-induced plunge, Baidu shares have been unable to get off the mat. The two months of churn have allowed the descending 50-day moving average to catch-up and the time could be nearing for a resolution out of the tight range established since May. * 10 Best Cryptocurrencies to Keep on Your Radar The next quarterly report is due out July 30 and could provide the kick needed to spark BIDU stock's next move. If options traders possess any prescience, then the eventual break will be lower. Yesterday's options trading saw massive put volume relative to calls. Total activity ramped to 361% of the average daily volume, with 174,074 contracts traded; 92% of the trading came from put options alone.Despite the dash for puts, implied volatility fell on the session to 40% or the 47th percentile of its one-year range. Premiums are now pricing in daily moves of $2.85 or 2.5%. Netflix (NFLX)Netflix shares plunged last night on disappointing earnings results, and the pain is continuing premarket. The primary culprit for investors' ire is the lackluster number of new subscribers for the quarter. The company had previously forecasted 5 million new customers, but was only able to welcome 2.7 million paid subscribers into the fold.NFLX posted second-quarter earnings-per-share of 60 cents on revenue of $4.92 billion.With NFLX stock poised to open near $323 or down 11%, the long-awaited break of its tight, seven-month trading range is finally upon us. Whether we see a close below it remains to be seen. We have seen buyers emerge to save potential breakdowns before, but today's plunge has weakening fundamentals driving it so it could stick.On the options trading front, traders favored calls ahead of the report. Total activity swelled to 242% of the average daily volume, with 320,247 contracts traded. Calls claimed 58% of the day's take.This morning's 11% puke was well above expectations. Option premiums were forecasting a gap of $22 or 6%, so we're looking at a sizeable move that will deliver big profits to traders swinging long volatility positions like straddles and strangles into the number. Bank of America (BAC)Bank earnings rolled on yesterday, this time with Bank of America stepping up to the plate. Its early morning rally melted into the close leaving the stock up a scant 0.6%. If you've never paid attention to bank earnings in the past, one thing should become crystal clear after this week's showing. They're boring and rarely generate jaw-dropping moves seen from high-flying tech stocks.For the quarter, Bank of America earned 74 cents a share on $23.2 billion in revenue. Compared to the year-ago quarter, both measures marked growth of 8% and 2.1%, respectively. * Top 7 Semiconductor ETFs to Buy Now The price chart for BAC stock leaves little interesting to chat about. It remains stuck in a seven-month range complete with crisscrossing moving averages that reveal a tie between bulls and bears on every time frame. Shareholders continue to collect a 2.06% dividend, while waiting for resolution.A jump over $29.70 resistance could get something going on the upside, but until then, it's hard to get excited about a bullish play.On the options trading front, calls were favored over puts. Activity climbed to 215% of the average daily volume, with 442,160 total contracts traded. Calls accounted for 65% of the tally.With such a snoozer of a reaction, traders whacked implied volatility down to 23%. That lands it at the 21st percentile of its one-year range and means the expected daily moves are now 42 cents or 1.4%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post Thursday's Vital Data: Baidu, Netflix and Bank of America appeared first on InvestorPlace.
Different situations call for different measures — literally. And this applies to the cup with handle, a very important chart pattern for growth investors as well.
This week, the pair announced they have renewed the sales partnership withoutrevealing how revenues are divided between the two and when the extendedagreement expires
Baidu, Inc. (NASDAQ: BIDU ) and Snap Inc. (NYSE: SNAP ) have renewed their Asia sales partnership , which first began in May of 2017. The agreement authorizes Baidu to act as Snap’s representative to advertisers ...
Baidu, Inc. and Snap Inc. announced today the renewal of their sales partnership, which first began in May 2017. The agreement authorizes Baidu to act as Snap’s representative to advertisers in Greater China, Japan and South Korea.
(Bloomberg) -- The car industry is reinventing the wheel to prepare for autonomous vehicles.Japan’s Sumitomo Rubber Industries Ltd., whose roots stretch back to when Henry Ford was building his Model T, is developing a “smart tire” that can monitor its own air pressure and temperature, and eventually respond by itself to changes in road conditions.Yet it’s more than just tires that are being changed. Koito Manufacturing Co., AGC Inc. and Lear Corp. are putting semiconductors and sensors inside headlights, glass and seats to make them as intelligent as the cars driving themselves.Alphabet Inc.’s Waymo LLC, Intel Corp.’s Mobileye NV and Baidu Inc. dominate the core technology for autonomous driving, yet suppliers still count on finding their own space in the business. Parts for advanced driver-assistance systems and autonomous driving are expected to become a $57 billion market within a decade, according to BIS Research, and old-school companies born during the early days of the automobile know they must either adapt or risk extinction.“Autonomous driving is a challenge for carmakers, but it’s a bigger challenge for conventional parts makers,” said Zhou Lei, a partner at Deloitte Tohmatsu Consulting in Tokyo. “They are striving to become the ‘five senses’ of the vehicle so they can remain relevant.”Carmakers have disclosed more than $14 billion in investments in autonomy and mobility companies since 2010, according to data compiled by BloombergNEF. Toyota Motor Corp. tops that list at about $3 billion.Though the deployment of highly autonomous commercial fleets isn’t expected to begin until at least 2022, the looming threat is that the increasingly sophisticated designs of those cars will render some ordinary parts –- and their suppliers -- unnecessary.For example, why would a self-driving vehicle that uses cameras, lasers and sensors to get around need headlights or mirrors?Smart HeadlightsThe response from century-old Koito Manufacturing is to reinvent the headlight. The Tokyo-based company, which traces its roots to making lenses for railway signal lamps in 1912, is adding sensors and artificial-intelligence chips to lamps it plans to introduce by about 2025.Positioned on the four edges of the vehicle, the lamps will be able to process information and react, such as by illuminating poorly lit crossings, signaling pedestrians that it’s safe to cross and raising an alarm to surrounding drivers by flashing a specific color.The company’s current customers include Toyota, Volkswagen AG and General Motors Co., according to data compiled by Bloomberg.“Autonomous driving will change the role of lamps,” said Yuji Yokoya, who recently retired as executive vice president of the Tokyo-based company. “We see them not just as lamps, but more as corner modules.”Tokyo-based automotive glass-maker AGC is re-imagining that product and making it part of a vehicle’s communication system.Window AntennasThe company, founded in 1907 as Asahi Glass Co. Ltd., is designing windows with built-in antennas for 5G wireless connections, allowing cars to send and receive signals with other vehicles and infrastructure. AGC’s customers include Toyota, Tesla Inc. and Sony Corp., according to data compiled by Bloomberg.An overarching challenge is to convince carmakers that the smarter -- and more expensive -- components make economic sense. Not all parts manufacturers need a radical transformation to keep up with autonomous and electric vehicles since they’ve been evolving gradually as the industry takes shape, said Deepesh Rathore, an independent automobile analyst based in Bengaluru.“A car is a car, and the shape of the tire doesn’t change,” Rathore said. “I can imagine some of those companies having to reinvent everything -- especially those working with engines and gearbox technologies.”Even components that aren’t facing an immediate existential threat are evolving. Sumitomo Rubber is researching tires that can transmit data about road conditions to the car as well as to other vehicles.Smart Tires & SeatsThe next step will be a tire that automatically adapts to road conditions. When the tire detects water, it will change the structure of its surface into one that is optimal for wet roads, said Kozaburo Nakaseko, an official in the research and development division of Sumitomo.“Tires need to become smarter,” Nakaseko said. “We cannot move into an autonomous car society without information about the roads we drive on.”The innovations aren’t just limited to Japan. In the U.S., Lear Corp. is equipping its car seats with biometric sensors to detect stress, drowsiness and changes in heart rate, and then activate treatments in response. The seats also can transmit data to a doctor or family member if necessary, the company said.Other functions include controls that let users create individual “micro-climates” where they are sitting, and noise-canceling features in the headrests, the Southfield, Michigan-based company said.“All the mechanical stuff will just slowly go away, and there is a lot of electronics coming in instead,” said Egil Juliussen, principal auto analyst with IHS Markit. “You have to change in order to survive.”\--With assistance from Mei Futonaka, Anurag Kotoky, Indranil Ghosh and Gabrielle Coppola.To contact the reporters on this story: Ma Jie in Tokyo at firstname.lastname@example.org;Nao Sano in Tokyo at email@example.com;Masatsugu Horie in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Young-Sam Cho at email@example.com, Ville Heiskanen, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Nio (NYSE:NIO) is on fire. Since late June, Nio stock has risen by close to 65%. This offers welcome relief to NIO shareholders who have seen little else but decline since the stock launched its IPO in 2018.Source: Shutterstock Still, despite the improved sentiment, production remains low, and losses continue to mount. The better-than-expected sales numbers may stoke optimism. However, the conditions that turned NIO into a penny stock remain in place. NIO Benefits From a Dramatic TurnaroundNio stock saw nothing but pain from March to June. A spike in the stock price took NIO briefly past the $10 per share mark in early March. However, a "greater than anticipated" slowdown cited in their earnings report took the Nio stock price down by more than 20% in a single day and more than 11.5% in the following trading session. From there, NIO saw a steady slide, falling to below $2.50 per share by last June.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the last two weeks, sentiment has shifted dramatically. The latest surge in the stock came when the company reported a "greater than anticipated" number of deliveries. As a result, the stock has risen substantially from the $2.50 per share range where it traded in late June. Now, with the Nio stock price hovering close to $4 per share, many wonder if now is the time to buy NIO.In fairness, some optimism has returned to the market. Its much larger American counterpart Tesla (NASDAQ:TSLA) has risen by more than 30% since early June. The China Passenger Car Association also reported a 4.9% increase in sales. This is the first such increase in about one year. The Rally in Nio Stock Is Unlikely to HoldHowever, none of this changes the fact that analysts project nothing but losses for the foreseeable future. Yes, I did not see the surge in Nio stock coming recently. However, I predicted NIO would tread water, but little else. I stand by that sentiment.For one, it remains a small player. Our own Tezcan Gecgil points out that Chinese companies produced 254,000 electric vehicles (EVs) in the first quarter of 2019. Nio produced just under 4,000 of those cars.Gecgil makes good points that may ensure its survival. The company has backing from the likes of Baidu (NASDAQ:BIDU) and Tencent (OTCMKTS:TCEHY). It also remains true that pollution guidelines in places such as Beijing and Shanghai make it challenging to obtain licensing for non-electric vehicles.However, judging by the company's financial statements, that survival could come at a high cost to holders of Nio stock. Nio lost just over ¥2.65 billion renminbi ($390 million) in the previous quarter alone. Its ¥7.45 billion renminbi ($1.08 billion) in cash will not last long at that rate. Moreover, with ¥9.25 billion renminbi ($1.35 billion) in short and long-term debt, they have little room left to borrow.Hence, its backers will probably want more stock in return for funding. While the increased stock price helps with fundraising, the stock dilution will hurt current shareholders. The Bottom Line on Nio StockDespite the optimism surrounding Nio stock, Nio remains a troubled company struggling to survive. Indeed, improved sales bode well for the company. The suffocating pollution in China's large cities also helps drive sales in the EV industry.However, despite a slight uptick in sales, Nio stock will likely post losses for years to come. Moreover, with cash levels likely to fall, and debt burdens becoming increasingly heavy, the company will probably have to issue more stock to stay in business.Given the push for cleaner energy, EVs are likely here to stay. However, to earn investment returns in this industry, established car companies and even Tesla stock offer safer options. With better choices out there, and the risk that the latest move amounts to a dead cat bounce, I see no reason to buy Nio stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Investors Should Not Expect Nio Stock to Keep Cruising Higher appeared first on InvestorPlace.
Today, China released its trade data for June. China’s dollar-denominated exports fell 1.3%, while its imports in US dollar terms fell 7.3% last month.
(Bloomberg) -- In a packed ballroom in Beijing’s national convention center, the executive from a major technology company laid out ambitious plans for the future of artificial intelligence in China. He explained how customized semiconductors would help power everything from autonomous cars to voice-activated industrial machines.Only this wasn’t a state-backed enterprise. This was Intel Corp., the largest U.S. chipmaker.The company’s AI chief, Naveen Rao, pledged to work closely, “engineer to engineer," on cutting-edge technology with the 7,000 people that attended Baidu Inc.’s annual developers conference last week. Intel was the top sponsor of the event.Rao made no mention of politics, though his overwhelming support of Baidu, a Chinese national tech champion, sent a powerful message: Even as U.S. and Chinese leaders are locked in a fierce battle over technological supremacy, companies like Intel remain big backers of China’s tech industry because they rely on the country for significant contributions of revenue, production chains and even talent.Intel made 27% of its revenue in China last year, more than in the U.S. or any other market, but it’s fighting to hold on to customers there that it spent decades cultivating. Like many American multinationals with large businesses in the country, Intel is walking a fine line between holding on to that lucrative market and keeping in Washington’s good graces. Neutrality is becoming a tougher stance to maintain."There’s been a psychotic break” in what some leaders in the U.S. government want and what American businesses want, said Josh Dorfman, founder of One Thousand Million, a China-focused consultancy and think tank based in Dallas. "Unlike in China, U.S. companies aren’t beholden to the country and are not obligated in any way, shape, or form to be patriotic. They want to make money."An Intel spokesman said the company remains engaged with Chinese customers that aren’t on the U.S.’s list of those it sees as a security threat. China is a substantial market for Intel and it has no intention of pulling out now.Intel isn’t alone. Apple Inc. is heavily dependent on China not only for the manufacture of Mac computers and iPhones but it’s also a major consumer market, accounting for about 20% of sales. Even as U.S. President Donald Trump threatened tariffs that would hit Apple products, the California-based company was making plans to shift production of its new Mac Pro computer to China, sending a clear signal of support.While some companies are considering moving part of their production out of the country, many others are making gestures of goodwill. Walmart Inc. last week pledged to invest $1.2 billion in China to upgrade logistics distribution centers. Boeing Co. is in negotiations to sell 100 jetliners to Chinese airlines in one of its largest-ever deals, Bloomberg News reported. And last month, 600 U.S. companies and trade groups signed a letter to Trump warning of tariff-related hits to their businesses.IBM’s Greater China group chairman Liming Chen said that the escalation of China-U.S. trade frictions has created a "confusing environment" for businesses. He outlined International Business Machine Corp.’s long relationship with China, dating back to its products first entering the country in the 1920s, and formally establishing a Shanghai office in 1936."IBM has participated in the rapid development of China over the past 40 years, while China has also nourished IBM," he wrote in a post on WeChat in June, calling the country an "indispensable part of our global strategy map."The U.S.-China trade war is anchored in competition to dominate the next generation of wireless networks and other technologies as much as politics. The Trump administration worries that American companies in search of profits could actually help China’s tech industry eclipse U.S. prowess in sensitive areas like artificial intelligence and machine learning.The chairman of the U.S. Joint Chiefs of Staff, Joseph Dunford, lambasted Alphabet Inc. in March for Google’s AI work in China, which he alleged "indirectly benefits the Chinese military." Trump repeated the critique in a subsequent tweet, questioning the Google parent’s loyalties. Google has said it doesn’t work with China’s military.The same nationalistic fervor is partly behind the Commerce Department’s May prohibition on selling American components to Chinese telecom behemoth Huawei Technologies Co. Despite Trump’s recent pledge to ease restrictions, Huawei remains on America’s so-called entities list and U.S. firms must apply for special licenses to sell parts to the company.That hasn’t stopped chipmaker Micron Technology Inc. from feverishly trying to find ways to keep supplying the company, one of its largest customers. The U.S. semiconductor industry also lobbied the Trump administration to loosen restrictions on Huawei.Still, American tech companies are facing a new global reality. They may no longer be able to overlook geopolitics in favor of profits. China may not be the growth savior it once was.Tech companies "must now live in a world where their Chinese business partners and global value chains at any given day could blow up," said James Lewis, director of the tech and public policy program at the Center for Strategic and International Studies, a Washington think-tank. “Trump might have backed off Huawei for now but next week it could be something different and any of these companies are fair game.”Lewis, who previously served as the U.S. Commerce Department’s lead for national security and espionage concerns related to high-technology trade with China, said Chinese firms are also racing to become less reliant on the very American firms bending over backwards to keep their business.Splitting the two economies won’t be easy. Research, development, manufacturing and talent in the U.S. and China are still very much interconnected."Innovation by American companies is fueled by access to the Chinese market," said Samm Sacks, cybersecurity policy and China digital economy fellow at think tank New America, in Congressional testimony in May.For Intel’s AI chief, collaboration with China helps the company to build better products and bring new technology to market fast.“I’m proud of the strong and growing partnership between Intel and Baidu,” Intel’s Rao said in Beijing, after greeting developers with a hearty “nihao.” “By working together to advance AI, Baidu and Intel are helping to usher in a world where AI is ubiquitous.”\--With assistance from Gao Yuan.To contact the reporters on this story: Shelly Banjo in Hong Kong at firstname.lastname@example.org;Zheping Huang in Hong Kong at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Tencent Holdings Ltd. is pressing China’s top smartphone vendors and app stores to boost the cut of revenue it gets from games sold through their platforms, people familiar with the matter said, stepping up efforts to claw back profits as its business slows.The social media giant is seeking as much as 70% of the sales generated from its games, up from just 50% now, said the people, who requested anonymity discussing private negotiations. That would bring Tencent’s portion in line with the proportion shared with game publishers on other platforms, including Apple Inc.’s iOS store and Google Play, which each keep 30% of revenue that comes from apps. Negotiations vary from platform to platform, and Tencent may not be asking as much from each app store operator, the people said.Tencent is keen to shore up its bottom line as growth in China, the world’s No. 2 economy, decelerates, sapping consumer spending on entertainment and hurting advertising. The company’s gaming division -- its largest -- was battered in 2018 by a series of regulatory crackdowns and in May, Tencent reported the smallest increase in sales since going public in 2004.At the same time, Tencent has gained leverage in negotiations because the pipeline of new games has shrunk, the result of Beijing’s clampdown on what it views as gaming addiction among youths. Fewer than 5,000 new games will be approved this year, versus more than 8,500 in 2017, Asia-focused gaming researcher Niko Partners estimates.Tencent “is likely to gain stronger bargaining power against its distribution channels,” Citigroup analysts led by Alicia Yap wrote in a research note this week.The social media titan initiated talks in recent weeks with most of the country’s largest app stores, run by leading smartphone makers such as Oppo, Lenovo Group Ltd. and Xiaomi Corp., as well as internet outfits such as Baidu Inc. and 360, the people said. Tencent is focusing on only a subset of its games at present, they added. But if the 70-30 split becomes the standard, that could translate into billions of dollars of additional revenue annually.Tencent dominates the market thanks to its all-purpose WeChat app, which serves more than a billion people, and a development machine that consistently cranks out hits such as Honour of Kings and Peacekeeper Elite. Now, the company is taking advantage of its heft -- its closest rival is the much smaller NetEase Inc. -- to pressure app distributors to cough up more revenue, the people said.P.H. Cheung, a spokesman for Tencent, didn’t immediately respond to an email and text query on the company’s plans, which were previously reported by gaming industry media outlet Gamelook. Baidu and Oppo declined to comment.Those negotiations are by no means all one-sided. If anything, Tencent may have to work hard to change the status quo. The country’s four biggest smartphone names -- Oppo, Vivo, Huawei Technologies Co. and Xiaomi -- run app stores for their users that together account for about 40% of market share.Among the new titles Tencent wants a bigger revenue cut on is role-playing mainstay JX Online 3, developed by China’s Kingsoft Corp., and Crazyracing Kartrider, a mobile remake of a popular title from South Korea’s Nexon Co., one person said. As of now, neither title is available on stores operated by Oppo and Vivo, suggesting those two device-makers have yet to agree to Tencent’s proposal.App developers and publishers compete to get games listed on those stores, whose operators host in-game payments for things such as virtual goods, character skins and power-ups. In return, developers get a cut of that revenue. Unlike in the U.S. and Europe, where a 70-30 split is common, revenue-sharing varies hugely across different Chinese stores but is commonly pegged at 50%. Furthermore, that cut is usually negotiated directly with each of the stores, sometimes on a game-by-game basis.What’s in the app stores’ favor is the sheer volume of competition. While Google Play is blocked in China, there are approximately 400 Android app stores, though many have an extremely small number of mobile users. The country’s app stores focus especially heavily on games because that’s where the money is -- many don’t even levy a cut of revenue at all on non-gaming apps.\--With assistance from Lulu Yilun Chen.To contact Bloomberg News staff for this story: Zheping Huang in Hong Kong at firstname.lastname@example.org;Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
This morning, US index futures surged after Federal Reserve Chair Jerome Powell’s testimony raised the possibility of a near-term cut in interest rates.
(Bloomberg) -- China’s largest technology companies are gunning for YouTube’s biggest stars.The Qingteng Club, a group affiliated with social media and gaming giant Tencent Holdings Ltd., will host executives and celebrities from the Chinese and U.S. online video industries at a private event in California this week, according to attendees. The event, dubbed the East-West Forum, will take place at an Anaheim hotel down the street from VidCon, a convention for fans of online influencers.Tencent, owner of the all-purpose Chinese app WeChat, is trying to encourage more U.S. social-media stars to do business in the world’s No. 2 economy. The opening panel of the event is titled “How Tencent could help your influencers’ businesses in China.” They have an edge over YouTube in tapping the burgeoning market: The Google-owned video service is blocked in the country.The resurgent interest in American content coincides with a period of intense competition in the world’s largest online arena. The popularity of Douyin, China’s equivalent of TikTok, has shaken China’s technology industry, and companies like e-commerce giant Alibaba Group Holding Ltd., search leader Baidu Inc. and Tencent have been forced to defend their turf.Tencent, whose WeChat messaging service is used by a billion-plus people, has previously blocked links to Douyin. And IQiyi, a Netflix-style streaming service controlled by Baidu, is working on a competing app.“East-West Forum is an exclusive event that brings leaders in tech and entertainment industry together from east and west to meet, to learn more about each other and build potential collaborations,” according to a statement by the Mars Summit, an organization helping to host the event.Fan GatheringSome of the biggest names in Chinese social media are descending upon California this week as tensions with Washington run high over the Asian country’s technological ascendancy.Executives from TikTok, owned by Bytedance Ltd., Tencent and Baidu are all speaking on panels at this year’s VidCon, which started as an event for people who post videos on YouTube to meet with fans. Celebrities sign autographs and host panels, while executives give keynote speeches. The convention has since expanded to include online platforms such as Amazon.com Inc.’s Twitch, Facebook, Instagram and Twitter.The East-West Forum will also bring together executives from Tencent, the founders of Chinese startups RED and Bilibili Inc., and online influencers Jordi and Azzy. It’s also expected to attract U.S. media executives from Fine Brothers Entertainment, which operates some of the most popular channels on YouTube.“There is a very large, very senior delegation of Chinese executives at VidCon,” said Jasper Donat, a media executive and producer based in Hong Kong. “The fact that that’s happening is pretty big. It’s been hard to get a lot of China into America in recent years, and they are here in force.”To contact the reporter on this story: Lucas Shaw in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.