|Bid||96.52 x 1800|
|Ask||96.70 x 900|
|Day's Range||94.14 - 97.38|
|52 Week Range||93.39 - 234.88|
|Beta (3Y Monthly)||1.58|
|PE Ratio (TTM)||7.53|
|Earnings Date||Aug 19, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||152.69|
China's leading search engine reports its second-quarter results on Monday night. The report doesn't have to be perfect for investors to win, with the stock at a six-year low.
Shares in China’s online-search giant Baidu have lost almost 40% of their value since the beginning of the year, as the weakening Chinese economy has dented companies’ spending on advertising and dragged on Baidu’s revenue.
(Bloomberg) -- Baidu Inc. has dropped off the list of China’s five most valuable internet companies, underscoring the challenges facing the search giant from a weakening economy to intensifying competition.NetEase Inc., China’s second-largest gaming house, has overtaken Baidu in market value after posting better-than-expected quarterly earnings last week. Shares of NetEase have gained 11% this year, while Baidu’s plunged 40%. The latter company, once touted as a member of China’s internet triumvirate alongside Alibaba Group Holding Ltd. and Tencent Holdings Ltd., has bled $66 billion of capitalization since its peak in May 2018 -- the equivalent of one Morgan Stanley.Baidu has struggled to fend off competition from the likes of Tencent and ByteDance Inc., both of which are luring smartphone-savvy consumers and advertisers to their popular mini-video and social media apps.The company enjoyed a near-monopoly in Chinese internet search after Google departed the market in 2010 over government censorship. This week, ByteDance launched its own standalone search engine, posing a serious threat to the almost two-decades-old Baidu. The company was previously pushed out of the Top 3 in market value by e-commerce operator JD.com Inc. and food delivery service Meituan.Baidu, together with rivals Alibaba and Tencent, has long formed part of a trio of leading internet companies known by the acronym BAT. Now even that title seems under threat, with some dubbing ByteDance the new “B” in the group. Baidu in May posted its first quarterly loss since its 2005 stock market debut, after the Chinese economy slowed and rivals chipped away at its advertising sales.To contact the reporter on this story: Zheping Huang in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Credit has to be given where it's due -- at least the Alibaba Group (NYSE:BABA) bulls are trying. Though down in step with most other stocks since late July, Alibaba stock turned the ship around in early August before a major technical floor was broken. For the second time in less than three months, that recovery effort is unfurling on above-average volume.It remains to be seen if it will take hold. A solid second quarter report from rival JD.com (NASDAQ:JD) certainly helped fan the bullish flames of the current rebound effort. But, it wasn't enough to push BABA stock above a convergence of technical resistance before a newly-inverted yield curve stoked recession fears … again.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul Thursday's post-close earnings report from Alibaba Group may well force traders to commit to a decision, for better or worse, on Alibaba stock. BABA Stock Getting SqueezedIt's a misnomer that all of China's top stocks are in a nosedive. Certainly Weibo (NASDAQ:WB), Baidu (NASDAQ:BIDU) and Iqiyi (NASDAQ:IQ) have been fighting losing battles. Baozun (NASDAQ:BZUN), Tencent (OTCMKTS:TCEHY) and Alibaba stock remain in distinct uptrends though, even with sizeable setbacks seen in the middle of 2018.That could all change dramatically after Thursday's closing bell rings, however. That's when Alibaba is slated to reveal last quarter's results into an environment where there's little room left to roam.The chart tells the tale. The rising support line in place since early 2016 is still intact, prompting last week's rebound effort. But, a relatively young falling resistance line is also in place. That's what broke the rally effort in July, and ultimately in May as well. Click to EnlargeThose two lines are clearly on an intercept course, now less than thirty points apart. That's not a lot of room for BABA stock to do what it usually does.It's highly likely that whatever Alibaba reports on Thursday will ultimately snap the psychological underpinnings of either the support or resistance that has taken shape over the past few months. Alibaba Group Facing a HeadwindThe company's first-quarter fiscal results are going to be unveiled in a less than hospitable environment.Although the White House backed off on plans to introduce new tariffs on Chinese imports into the United States this week, older tariffs remain in place. While the U.S. economy is growing at a measurable pace, China's is starting to show serious cracks. The country's industrial output grew at a 17-year low in July. Though it hinted at a recovery in June, retail spending growth fell to 7.6% last month … the second-lowest growth pace in years. The nation's unemployment rate grew from 5.1% in June to 5.3% in July.It remains to be seen to what extent that turbulence will affect Alibaba's results. The quarter in question ended in June, so the first two months of the three-month stretch were reasonably healthy.Conversely, investors are increasingly pricing stocks based on where it seems they are going rather than where they have been. If China's e-commerce giant paints anything less than a rosy forward-picture, nervous investors may assume the worst and respond bearishly to bullish news. Looking Ahead for Alibaba StockAs of the latest look, analysts are calling for earnings of $1.46 per share of BABA stock on revenue of $15.82 billion. That's considerably more than the year-ago figures of $1.16 and $11.66 billion. The bar is set uncomfortably high.On the other hand, Alibaba only failed to top one quarterly estimate for the past three years. Again, a beat may still not be good enough against the present backdrop consisting largely of worry.Whatever's in store, just know that the chart is just as likely to lead the rhetoric as much as it's apt to be shaped by it. But, that's potentially problematic in itself.If a modest breakdown drags Alibaba stock below the aforementioned floor, that selloff will be heavily highlighted by the financial media, which will exacerbate the selling by virtue of inciting more fear. The market-wide tide will also play a role in the stock's direction from here, and clearly investors are increasingly nervous.Perhaps there's a case to be made for being on the sidelines by the time Thursday's closing bell rings, even if it means leaving money on the table. There's likely to be plenty of trade-worthy action outside of the converging wedge shape.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Earnings Could Solidify or Squelch Alibaba Stock Uptrend appeared first on InvestorPlace.
BEIJING/HONG KONG (Reuters) - Meituan Dianping, a Chinese online food delivery-to-ticketing firm, has started building a mapping service, aiming to enter an area currently dominated by Alibaba's AutoNavi and Baidu Maps. A spokeswoman for Meituan told Reuters the company was working on the project, after it advertised more than a dozen positions on job hunting website Lagou.com on Tuesday for a new service it called "Meituan Maps". "We can confirm that Meituan is working on a mapping business," the spokeswoman said.
BEIJING/HONG KONG, Aug 14 (Reuters) - Meituan Dianping , a Chinese online food delivery-to-ticketing firm, has started building a mapping service, with an aim to enter an area currently dominated by Alibaba's AutoNavi and Baidu Maps. A spokeswoman for Meituan told Reuters that the company was working on such a project, after it advertised over a dozen positions on job hunting website Lagou.com on Tuesday for a new service it called "Meituan Maps". "We can confirm that Meituan is working on a mapping business," the spokeswoman said, adding the company had recently hired a former Baidu Maps executive.
On August 6, Baidu stock fell below $100 for the first time in five years. In part, this decline resulted from the trade tensions between the US and China.
When Alibaba Group (NYSE:BABA) last reported its earnings in May, there was little to quibble about. Revenues shot-up by 51% and net income came to an impressive $3.85 billion.Yet this performance was not enough to gin up interest in Alibaba stock. During the past three months, the shares have gone from $178 to $157.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, BABA stock is no outlier. Other notable Chinese stocks have also come under pressure, such as JD.com (NASDAQ:JD), Weibo Corporation (NASDAQ:WB) and Baidu, Inc (NASDAQ:BIDU). Yes, the U.S.-China trade war has certainly taken a toll.As for Alibaba stock, the next earnings report - which will be announced Thursday before the market opens - will be an important one. Keep in mind that the company has already indicated that growth will likely decelerate. * 7 Stocks Under $7 to Invest in Now So, what does the Street expect for the current quarter? Well, analysts forecast revenues to jump by 28.4% to $16.09 billion and earnings to come to $1.49 per share. And yes, given BABA's own conservative guidance, the numbers are probably beatable. But this may not matter much. For now, the markets are mostly concerned about the trade situation, which is vague. The Quarterly Events for Alibaba StockFor BABA stock, the latest quarter has certainly been active. Let's take a look at some of the highlights: * The company filed confidential papers for a listing on the Hong Kong market. The proposed offering, which will be led by China International Capital Corp and Credit Suisse (NYSE:CS), will likely raise billions (keep in mind that the U.S. IPO came to $25 billion). Although, due to the continued instability in Hong Kong, the listing is far from a guarantee. * Alibaba's B2C platform for brands and retailers, Tmall, announced a partnership with the New York Fashion Week (NYFW): The Shows. There will also be similar arrangements with the Paris Fashion Week and Milan Fashion Week. * Luxury brand Michael Kors - which is a part of Capri Holdings Limited (NYSE:CPRI) - has opened a digital store on Tmall. The deal will also include exclusive access to special products. * Alibaba Group announced a strategic partnership with the municipal government of Yiwu, in the Zhejiang province of China. The deal will involve the launch of the eWTP hub, which will facilitate trade in the world's largest wholesale market. * For the "6.18 Mid-Year Shopping Festival," Taobao and Tmall had record-breaking performances, as demand from less-developed cities surged. More than 200,000 brands took part in the event. Bottom Line on BABA StockFor the long-term, I think Alibaba stock looks attractive. The company is similar to Amazon.com (NASDAQ:AMZN), with dominant positions in key markets like e-commerce and cloud computing. What's more, the market in China is much larger. For example, BABA has a whopping 721 million mobile monthly active users (MAUs), up 104 million on a year-over-year basis.As for the cloud business, the prior quarter saw a 76% surge on the top line to $1.15 billion. The company has been leveraging its massive platform to capture new customers and has also been aggressive with adding new services like blockchain, cybersecurity, database systems and artificial intelligence.Something else: the valuation on Alibaba stock is fairly reasonable. Consider that the forward price-to-earnings multiple is 18.5-times. By comparison, JD.com is at 26x.However, in the near-term, there still may not be much bullishness with BABA stock. The uncertainties regarding trade seem to be paramount concerns right now. And this could mean that shares will be choppy for some time.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post Can the Growth in Alibaba Stock Continue Amid Geopolitical Whirlwinds? appeared first on InvestorPlace.
China's top technology, e-commerce and consumer electronic firms are set to report a sharp slowdown in revenue growth for the June quarter, as a bruising trade war with the United States weighed on the Chinese economy and hurt consumer spending. Revenues at a handful of China's biggest tech firms are expected to grow 26% on average in the quarter ended June 30 - the slowest in six quarters - compared with the same period a year earlier, according to consensus estimates from Refinitiv. This includes China's e-commerce giant Alibaba Corp and its smaller rival JD.com, internet firm Baidu Inc, and Tencent Holdings, the world's largest gaming company.
Zhihu, the largest question and answer platform in China, has raised a $434 million Series F. This is not only the company’s biggest round since it launched in 2011, but also one of the largest secured over the past two years by a Chinese internet culture and entertainment company, said China Renaissance, which served as the funding’s financial advisor. The Series F was led by Beijing Kuaishou, the video and live-streaming app, with participation from Baidu . Existing investors Tencent and CapitalToday also returned for the round, which Zhihu will use for technology and product development.
(Bloomberg) -- Zhihu, China’s answer to online Q&A service Quora, raised $434 million from investors including some of the country’s largest social media companies and the leading search service to bankroll its expansion.Kuaishou, one of the biggest live-streaming platforms, led the investment in Zhihu, according to a statement from China Renaissance Holdings Ltd., which advised on the deal. Zhihu, whose name means “know?” in Chinese, also snagged search giant Baidu Inc. as a new investor. Existing backers Tencent Holdings Ltd. and Capital Today also invested in the new round.The investments could help Kuaishou and Baidu amass more content and fend off competition from ByteDance Inc., which is moving into search and drawing smartphone-savvy users to its popular short video and personalized news services. Through the financing, Baidu will add more than 100 million Zhihu Q&A posts to its main app, which is a combination of a search engine and news feed, Baidu said in a statement.”We are all facing the same problem of an isolated island of information, and the cost of high-quality content is rising,” Zhihu Chief Executive Officer Zhou Yuan said on his own service after the investment was announced.Founded by coder-turned-blogger Zhou, Zhihu has evolved over the past eight years to become one of China’s most reputable social media platforms, known for its high-quality Q&As on everything from films to football and foreign policy.Zhihu is “recognized for its unique knowledge creation and sharing community,” Wang Lixing, a China Renaissance managing director, said in the statement. “The cooperation between Zhihu, Kuaishou and Baidu will create huge synergies and lay the foundation for long-term development.”(Updates with Zhihu CEO’s statement in the 4th paragraph.)To contact the reporters on this story: Zheping Huang in Hong Kong at email@example.com;Lulu Yilun Chen in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It has been a tough week recently for China-based stocks. And NIO (NYSE:NIO), a competitor to U.S.-based automaker Tesla (NASDAQ:TSLA), has undoubtedly been hard hit. After soaring past $10 earlier this year, Nio stock has since slumped to $3.17, in line with the bearish run on all China-based stocks.Source: Shutterstock In fact, Chinese stocks, as represented by the iShares MSCI China ETF (NASDAQ:MCHI) recently closed at $55 and the exchange-traded fund seems headed to its 52-week low of $50, after having topped $60 just last month.So should Nio stock investors be worried?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe market has hammered all stocks related to China out of concerns of an upcoming trade war and accusations that China has manipulated its currency. No stock has been spared from the selloff.Alibaba (NYSE:BABA) is trading at $162, after having recovered from a steep fall to $152, yet it's still well off its 52-week high of $195. Baidu (NASDAQ:BIDU), now trading around $99, is just at its 52-week low after plummeting from $234 late last year.However, trade war or not, NIO will likely be a survivor and the headline damage could present real value if the Nio stock price gets much cheaper. Three Reasons NIO Stock Is a Long-Term Strategic BuyThe Trade War Will Most Heavily Hit Exporters to the U.S. … Not NIOThe phrase trade war with China is undoubtedly a frightening concept. Understandably, investors will dump any China-based stock. Yet, this is far from any outright war, but rather a readjustment of U.S. import tariffs that will hit China exporters. However, the bulk of NIO's market is in mainland China, one of the world's largest markets for electric vehicles (EV).No doubt, the trade war will weigh heavily on stock prices, and China will be hit. But the Chinese economy will likely remain rock solid. Last Thursday, China reported that its "exports rose 3.3% over a year earlier … rebounding from June's 1.3% contraction." Meanwhile, "[i]mports shrank 5.6% … an improvement over the previous month's 7.3% decline."The figures were mostly better than expected. In short, the Chinese export juggernaut will continue to steam forward. * 10 Medical Marijuana Stocks to Cure Your Portfolio Moreover, threats of a Chinese yuan devaluation and the global economic impact have already hit the market and are well baked into current prices. In most bad news related selloffs, stocks get hit hard at first and are usually oversold. Savvy value seeking investors then step in and bottom-fish for bargains. Similarly, NIO stock, after the sell off, may have been oversold by the market on the basis of an absolute worst case scenario.China Yuan Devaluation Could HelpCurrency devaluation is a two-edged sword. It will make Chinese exports cheaper and more competitive in the U.S. market. At the same time, U.S. exporters to China will have to hike their prices, thus cutting U.S. export sales. However, a devalued Chinese yuan will actually protect domestic Chinese manufacturers, such as NIO, in their home market.Tom Elliott, international investment strategist at Devere Group, a U.K.-based financial advisory firm, said a weaker yuan would increase cost-cutting pressure around the world's manufacturing industries:"Chinese goods, always competitive on price, will be even more competitive … This is therefore bad news for manufacturers outside of China, at a time when global manufacturing is struggling with weakening demand growth and the negative impact of the U.S.-China trade dispute on their supply lines and profits."Translation: A weaker yuan will hurt U.S.-based and non-Chinese manufactures the most. NIO, with 100% of operations inside China, is largely safe. So in the longer run, the Nio stock price might not be in as much trouble as some might think.An Out-of-the-Money, Long-Dated Option On a Hot MarketAt a rock bottom price below $3, NIO stock will be so undervalued as it will be akin to buying an out-of-the-money, long-dated call option. Such an option has zero intrinsic value, but potentially a huge upside if the underlying asset significantly appreciates. The EV market in China is just beginning to take off. EV sales will skyrocket in the next five years, mainly because it is much cheaper to operate an EV than a traditional gasoline-powered vehicle and there's a drive by the Chinese government to cut pollution.NIO commands the size, capacity, market share and evolving product line to make it ideally positioned to leverage the incredible growth of the Chinese EV market. Already, despite its ups and downs, as well as a recently disappointing earnings call, top-line revenues for NIO have increased over 400% from one year ago. * 7 S&P 500 Dividend Stocks to Buy With Yields of at Least 3% The NIO brand was recently ranked highest-quality in J.D. Power's inaugural China New Energy Vehicle Experience Index Study. NIO beat out several competitors, including second-ranked BMW (OTCMKTS:BMWYY). Two Chinese automakers -- Chery Automobiles' Chery and GAC Motors' Trumpchi, both state-owned -- tied for third place in the rankings.There will certainly be some tough weeks ahead for NIO stock as political rhetoric about a trade war with China continues to hammer the market. NIO will also see challenges as the Chinese government reduces subsidies on EV sales.But if Nio stock falls below the crucial $3 level, it will present an excellent opportunity for a long-term hold.As of this writing, Theodore Kim did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post 3 Reasons Nio Stock Will Be a Trade War Survivor appeared first on InvestorPlace.
Beijing-based ByteDance is moving beyond its core businesses in news and video and into work-place messaging and music streaming, competing with Tencent Holdings and other Chinese tech firms. The domain for the new search engine, Toutiao Search, sits within the company's flagship product - Chinese news aggregator Jinri Toutiao. The company said on social media last month it was looking to hire people to work with its search engine team, and had hired technical experts from Google, Baidu and Bing.
Baidu is set to report second-quarter earnings on Aug. 19. Weaker online ad business and a delay in iQiyi’s launch of some broadcasting content are contributing to lower expectations.