|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||43.60 - 44.25|
|52 Week Range||31.54 - 60.00|
|Beta (3Y Monthly)||1.20|
|PE Ratio (TTM)||32.61|
|Forward Dividend & Yield||0.01 (0.02%)|
|1y Target Est||49.95|
Leo Sun of The Motley Fool says he likes Baidu as a "conservative play," but prefers Tencent over the Chinese search giant in the long-term.
Is NIO Stock Readying for a Rally ahead of Its Q4 Results?(Continued from Prior Part)NIO’s earningsWhile NIO (NIO) stock was trading with a 3.0% month-to-date fall as of February 21, it was still up 19.9% YTD (year-to-date). Most other Chinese
Is NIO Stock Readying for a Rally ahead of Its Q4 Results?NIO’s fourth-quarter resultsPopular Chinese electric carmaker NIO (NIO) is set to release its fourth-quarter earnings results on March 5, 2019. The stock’s journey on the NYSE has been a
Will Trump Seal a US-China Trade Deal Next Month?The US marketThis afternooon, the NASDAQ Composite Index (QQQ) and Dow Jones Industrial Average (DIA) appear to be on their way to ending their ninth consecutive week in positive territory. At 2:32 PM
Warren Buffett's Troubles with Apple, Kraft Heinz, and Coca-ColaWarren BuffettMulti-billionaire investor Warren Buffett’s stock picks might not be working out so well for him and his investment firm, Berkshire Hathaway (BRK-B), these days.
Could Trump’s '6G' Innovation Save US Tech Companies?Donald Trump’s tweetsDonald Trump’s battle with the US media is ongoing, with much of it comprising insults being lobbed back and forth—earlier today, Trump tweeted a meme on CNN’s
When a company posts revenue growth of 51%, investors usually go into a buying frenzy. But when Momo (NASDAQ:MOMO) pulled this off in its third quarter, Wall Street didn't rush to gobble up MOMO stock. In fact, MOMO stock plunged by 15% on the news, and the shares actually came close to hitting a 52-week low.Source: Shutterstock Of course, when it comes to hyper-growth companies, even slight decelerations can have an out-sized impact on their valuation. And that was certainly the case with Momo Inc stock.Often referred to as the "Tinder of China," Momo was expected to report top-line growth of 51%-55%. MOMO also provided less-then-stellar guidance. The company said that its revenue growth would range from 43%-47% in Q4.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 High-Growth Stocks to Buy Now for Monster Returns Despite all this, MOMO stock has proved to be resilient. Since the December low, the shares have jumped 37% to $33. Part of its surge was due to an overall rally of Chinese stocks, which also lifted Alibaba (NYSE:BABA), Tencent Holdings (NASDAQOTH:TCEHY) and JD.com (NASDAQ:JD).But perhaps the main driver of the advance of MOMO stock is that MOMO is a solid company. In a relatively short period of time, MOMO, founded in 2011, has been able to build a rich platform. The company's main app, which is available on Apple's (NASDAQ:AAPL) iOS and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Android, allows people to connect with each other using features like Nearby Users and Nearby Events. It's also easy to send multi-media messages and play social games within the app.All in all, these features have helped lead to better dating matches. They also have created a network effect, which has been key to the growth of the company's user base. Note that its MAUs (Monthly Active Users) reached about 110.5 million as of the end of September, up from 94.4 million from the same time a year earlier. For early-stage social platforms, it can be tough to keep growing, as Snap (NASDAQ:SNAP) has shown. But MOMO doesn't seem to have a problem in that area.The company has also been adept at getting its users to pay for premium services. The total number of subscribers to the live video and valued-added services (such as virtual gifts) segment was 12.5 million, up from 7.3 million in Q3 of 2017. While 3.6 million of the segment's new users came from an acquisition, its growth was still impressive.But MOMO has its issues. Its ad revenues have been soft, and its mobile-gaming business has been under lots of pressure, due to intense competition from mega operators like Tencent. But for MOMO, these businesses are relatively small.More importantly, the company's margins have been under some pressure. That's partially because, in order to keep up its torrid growth, the company has been ramping up its spending on marketing, R&D and infrastructure. The Bottom Line on MOMO StockMOMO continues to generate hefty cash flows, which came to $50.9 million in Q4, and MOMO has $1.5 billion in the bank. So the company has the resources to make further M&A deals. Keep in mind that M&A has been crucial for Match Group (NASDAQ:MTCH). In other words, it would not be surprising to see MOMO acquire more companies.Meanwhile, MOMO stock is trading at dirt-cheap levels. Consider that the forward price-earnings ratio of Momo Inc stock is a mere 11.8, which is a steep discount to its growth rate. Granted, MOMO will continue to be volatile, which is normal for fast-growing companies. But for investors with a long-term focus, MOMO stock remains at a very attractive entry point.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. 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 * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post Will the Mojo of Momo Stock Continue? appeared first on InvestorPlace.
Some of the concerns surrounding Alibaba (NYSE:BABA) stem from a slowing down of the Chinese economy. The recent figures show 6.6% GDP growth rate in China which is the lowest rate in 28 years. More important, the forward estimates point to a further slowdown in the growth rate to below 5% in the next few years. However, Alibaba stock can still show bullish momentum as the company delivers 40% to 50% revenue growth rate using new services which are added to the platform.Source: Charles Chan Via FlickrAlibaba stock will also benefit from a shift to organized retail and specifically online platforms in China.Alibaba's cloud platform has shown a growth rate of 84% in the recent quarter. The revenue share of this fast growing segment is 6%. Alibaba is also diversifying to other non-core commerce services and is expanding in international regions.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 High-Growth Stocks to Buy Now for Monster Returns These initiatives should allow the company to report healthy growth rate in the near term. The valuation multiple of Alibaba's stock is still quite low for a company rapidly increasing the top line and bottom line. Slowdown in China's EconomyThere has been a gradual slowdown in China's economy in the last few years. The recent GDP growth figure is not surprising as most of the predictions were estimating growth of 6.5%. According to economists polled by Nikkei, the growth rate in 2019 could further fall to 6.2%.The OECD estimate for China's economy points to further deceleration. We can see from the above chart that the growth rate falls to below 5% by 2021-2022. This can lead to further concerns about the long term potential of Alibaba stock. However, the company's growth is quite detached from the growth rate in the broader economy.The growth in retail consumer goods was 9.0%. In a recent report, eMarketer has forecasted that the retail ecommerce sales will grow by 30.3% in 2019. This will increase the market share of online retail to 35% in the total retail segment.Alibaba's growth has consistently been greater than JD.com (NASDAQ:JD) which is main ecommerce rival of the company.Hence, the growth rate of Alibaba should easily exceed the broader online retail sales. Other Growth OptionsAlibaba has been expanding into new services with massive investments. It has built a strong delivery service with Ele.me which competes with Tencent's (OTCMKTS:TCEHY) Meituan. Meituan has a market cap of $40 billion.Source: BloombergBesides food delivery, Alibaba is using the Ele.me platform to add new services. It has recently entered into partnership with Starbucks to deliver coffee. Alibaba has also entered pharmacy delivery segment which should allow rapid increase in transactions and sales. The international growth is an important part for future growth potential of Alibaba stock. The company has spent billions of dollars in acquiring and investing in different regions. Alibaba has acquired Lazada and Tokopedia which are the leading ecommerce platforms in Southeast Asia. It is also a major investor in Paytm which is the biggest digital wallet platform in India. In the last funding round in which Warren Buffet participated, Paytm was valued at $10 billion. Alibaba and Cloud ComputingIn the recent quarter, Alibaba's cloud computing revenue increased to $962 million which was an 84% growth on a year-on-year basis. This also increased the revenue share of cloud computing to 6%. As the revenue base of this segment increases, it will have a bigger impact on the total revenue growth number. ValuationAlibaba stock still is quite cheap when we look at the revenue growth rate and future potential in various segments.We can see that despite trade tensions and tariffs, the forward revenue estimates of Alibaba did not decline significantly throughout 2018. The forward PE ratio of Alibaba stock is close to 30 which should be quite cheap for a company growing its revenue at close to 40%. Alibaba could also have an upside surprise on margins as the cloud computing segment is currently showing negative 4% EBITA margin. This is quite low compared to Amazon's (NASDAQ:AMZN) AWS operating margin of 29.3%. As the cloud revenue increases, Alibaba should be able to get better pricing power which can increase margins rapidly. Investor TakeawayWhile China's GDP growth rate is slowing, Alibaba has a number of growth levers to expand the revenue base as well as margins. Considering this, the valuation multiple of Alibaba stock is quite low. Alibaba should be able to add new services to its delivery platform. The revenue growth rate of Alibaba has been more than its main ecommerce rival, JD.com, for the past few quarters. A higher market share within the ecommerce space and rapidly expanding services should help in improving the long term growth potential of Alibaba stock.As of this writing, Rohit Chhatwal held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post Alibaba Stock Isn't as Tied to China's GDP as You Might Think appeared first on InvestorPlace.
Could Trump’s ‘China Trade Deal’ Make These Stock Rally?US stock marketThe broader market is trading on a mixed note for a fourth consecutive day today. Yesterday, the S&P 500 fell 0.4% after the release of weaker-than-expected durable
Comcast Updates: Acorns Deal, India Expansion, Legal Battles(Continued from Prior Part)Comcast is interested in a piece of Zee EntertainmentComcast (CMCSA) is one of the foreign firms seeking to purchase a stake in Indian mass media company Zee
Is Apple Already Too Late to the Foldable Phone Party?(Continued from Prior Part)AppleIn the first part of this series, we looked at Goldman Sachs analyst Rod Hall’s views about the new Samsung (SSNLF) Galaxy Fold and how it could pose a risk to
Tesla Stock Rises, Elon Musk’s Big China Push Raises HopesTesla On February 22, Tesla (TSLA) stock is recovering after falling 3.7% the previous day. At 8:36 AM EST, the stock was trading with 1.1% gains in the pre-market session. We’ll discuss
Is Apple Already Too Late to the Foldable Phone Party?(Continued from Prior Part)Apple versus SamsungAs we discussed in the previous part of this series, in an event on February 20, South Korean tech giant Samsung Electronics (SSNLF) unveiled a
Feb 22 (Reuters) - Pinduoduo Inc: * TENCENT HOLDINGS LIMITED REPORTS 30.9 PERCENT STAKE IN PINDUODUO INC'S CLASS A ORDINARY SHARES AS OF FEB 12, 2019 - SEC FILING * TENCENT HOLDINGS LIMITED - HAD PREVIOUSLY ...
Here's the understatement of the week: investing in Chinese companies over the past few months has been painful. Stakeholders for internet giant Baidu (NASDAQ:BIDU) can commiserate. Last year, Baidu stock tanked nearly 33%, effectively neutralizing -- or neutering -- the potential seen during 2017's robust bull run.Source: Shutterstock Naturally, most shareholders decided to run for cover. If holding onto relatively stable American companies didn't make sense, their volatile Chinese counterparts obviously didn't fare better. Unsurprisingly, the markets' adventurous folks advantaged the weakness. Since the second half of 2018, short interest in BIDU stock dramatically spiked.As a result, InvestorPlace feature writer James Brumley astutely noted that its latest fourth-quarter 2018 earnings report was crucial. Although Baidu stock benefits from its dominant search engine and its myriad lucrative opportunities, Brumley articulated investors' central question: what are you doing in the meantime?InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately for those long BIDU stock, the Chinese tech firm delivered the goods. BIDU beat the consensus estimate for earnings per share, amassing $1.92 per share against the $1.79 target. Additionally, management rang up $3.96 billion in revenue, exceeding the consensus calling for $3.88. Year-over-year, this tally represented 28% sales growth.Even more comforting, the specific details should bolster sentiment towards Baidu stock. According to CEO Robin Li:"The growth rate of Baidu App DAUs has been accelerating over the past year, up 24% year over year to 161 million in December 2018, while Haokan short video app grew to 19 million DAUs from 1 million a year ago."If we're just taking these numbers at face value, we have no reason to doubt BIDU stock. However, complex political and social underpinnings cloud the internet giant's prospects. * 7 Healthy Dividend Stocks to Buy for Extra Stability While I'm not dissuading anyone from BIDU stock, it's worth considering the risks. 'Americanized' User Base Possibly Threatens Baidu StockAs usual, Brumley lays out an excellent roadmap for those interested in BIDU stock. Honestly, I have nothing much to add aside from one of his points: Baidu's moneymaker is the search-engine advertising business, but draconian government oversight threatens this pivotal revenue channel.At first glance, this cyber-police crackdown inherently offers a mitigating effect. It's not just Baidu stock absorbing the unwanted attention. Rather, the Chinese government also targeted rivals such as Sohu.com (NASDAQ:SOHU) and Tencent (OTCMKTS:TCEHY).Historically, crackdowns in China are nothing new. It remains a communist country with totalitarian tendencies. That said, Tencent's WeChat app -- the "backbone" of Chinese millennial modernity -- presents a stark case regarding conflicting ideologies and how that could damage tech firms like BIDU.As South China Morning Post's Laurie Chen reported, Chinese youth have left WeChat in droves. The reason? Parent company Tencent disclosed that they hand over user data to authorities when required legally.Logically, this circumstance recalls Facebook (NASDAQ:FB) and its litany of privacy controversies. Moreover, many Chinese millennials refuse to submit to government totalitarianism like their parents' generation. Like their American counterparts, they're fighting back by leaving WeChat. Click to Enlarge The difference, though, is that we're witnessing a substantive impact. WeChat's active-user growth has decelerated dramatically. Possibly, this trend could spark viability concerns, especially among non-China-based investors.One of the central problems is that China's millennial culture is that they're unlikely to take crap, bluntly speaking. Increasingly, Chinese students have made their presence known in American universities, so much so that it's creating huge geopolitical rifts.During their four-plus years stateside, typically liberal professors indoctrinate students with the "American way." Based on WeChat's peaking growth curve, that individualistic indoctrination conflicts sharply with China's historically conservative culture.Unfortunately, the potential collateral damage threatens Baidu stock. A Worthwhile Gamble in BIDU StockGiven what I just discussed, the prospects for BIDU stock now appear decidedly negative. Perusing international news, the Chinese communist party shows no sign of acquiescing to western progressivism.On the flipside, China has reached a point where they can't willy-nilly antagonize its citizenry. As I mentioned last year, Chinese workers have voiced their displeasure at their own government for the trade-war related pains. Such vocal criticism was unheard of a generation ago.Plus, GDP growth in the world's second-largest economy has slowed conspicuously. Therefore, the government must make a choice: impose their ideology or support their still nascent capitalism. Ultimately, the communist hardliners can wax poetic all they want: money talks and bovine waste walks.Don't be surprised, then, that these internet and social-media crackdowns wane, if only for broader economic sustainability.Finally, I find encouragement with the current technical stability in Baidu stock. With all the short interest pressuring shares, BIDU has held firm. Now armed with a positive earnings result, the company solidified its nearer-term outlook. Therefore, a patient position now could yield strong profitability later.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post American Individuality a Surprising Risk for Baidu Stock appeared first on InvestorPlace.
shares were indicated higher in pre-market trading Friday after the China-focused search engine operator posted stronger-than-expected fourth quarter earnings and held to its near-term revenue guidance despite the broader slowdown in the world's second-largest economy. Baidu said adjusted earnings for the three months ending in December were tabbed at 13.18 yuan per share ($1.96), based on its American depositary share listing, well ahead of the 11.83 estimate compiled by Refinitiv. Looking into 2019, Baidu said it sees first quarter revenues in the region of 23.5 billion to 24.7 billion, an 18% increase at the top end and a figure that won't be affected by company divestments and essentially matches Street forecasts.
China’s Baidu has lost more ground to its bigger online rivals Alibaba and Tencent, as measured in market-value terms, as competition grows and China’s economy slows. China fixed the yuan at 6.7151 to the dollar, its strongest in three weeks.
South Korean tech firms Netmarble and Kakao and private equity fund MBK Partners have submitted initial bids to buy the parent of gaming firm Nexon, the Seoul Economic Daily said. The newspaper and another daily said U.S. private equity firms were also bidding for NXC Corp, which controls Nexon. Nexon founder Kim Jung-ju wants to sell a 98.64 percent stake in NXC Corp that is held by him and related parties including his wife.
Tesla Tanks on Negative Model 3 Report: How Will Elon Musk React?Tesla stock fellThis afternoon, Tesla (TSLA) stock fell over 2% after Consumer Reports said it “can no longer recommend the newest Tesla—the Model 3.” As the reason for its
Trump Wants to Make America Great Again with Non-Existent TechPresident Donald TrumpPresident Donald Trump is well known for being on Twitter all the time. Twitter is where the president seems to express any and every idea that comes to mind.
Has Trump Managed to Breach the Great Wall of China?(Continued from Prior Part)TrumpAccording to Reuters, citing two unnamed sources, US and China “Negotiators are drawing up six memorandums of understanding on structural issues: forced technology
When Dai started his company in 1994, roadside surveillance cameras were rare in China. The 54-year-old former academic, who now drives a luxury sedan and rewards high-performing employees with BMWs, is the latest of at least four businessmen to amass billion-dollar-plus fortunes from surveillance companies that count China’s government as a major client or investor.