42.01 -0.18 (-0.43%)
After hours: 7:09PM EDT
|Bid||42.01 x 1400|
|Ask||42.43 x 1300|
|Day's Range||40.97 - 42.49|
|52 Week Range||34.26 - 83.35|
|Beta (3Y Monthly)||1.80|
|PE Ratio (TTM)||15.40|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of JD.com (NASDAQ:JD) soared on Tuesday. JD stock gained nearly 13% after its second-quarter earnings came in well ahead of analysts' average expectations.Source: Sundry Photography / Shutterstock.com And there's a simple reason why JD.com stock can keep climbing. Specifically, even after those gains, JD.com is up only 2% over the past month. That's because JD stock dropped 17% in five sessions a couple of weeks ago on fears of an escalating trade war, and Tuesday's gains only recaptured most of those losses.In other words, the good news from JD's earnings doesn't seem priced in. And that, in turn, suggests that JD could keep moving higher, as long as the company gets a little bit of outside help.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JD.com Crushes EstimatesCompared with analysts' average expectations, JD.com had a truly impressive quarter. Its earnings per share of 33 cents, excluding certain items, was 25 cents above the average estimate. That was the company's biggest earnings beat since its 2014 IPO. JD's year-over-year revenue growth of almost 23% was more than five percentage points better than the Street's average expectation.On an absolute basis, too, the results looked strong. The 22.9% increase in its sales was a notable acceleration from the 13% growth that JD.com reported in Q1. And its net income, excluding certain items, increased more than 600% year-over-year. * 10 Stocks Under $5 to Buy for Fall And it's how JD grew its sales and profits, not just by how much they increased, that helps the bull case on JD stock. When JD.com sold off last year, worries about a potential trade war and its impact on the Chinese economy were key drivers of the decline . But investors also fretted about the company's higher spending, which pushed profits to nearly zero in Q2 of 2018.In Q2 of this year, however, JD managed to drive strong growth while posting a modest increase in gross margin and, more importantly, controlling its operating expenses. Its fulfillment expenses only rose at half the rate of its revenue. Furthermore, its marketing spending increased less than 7%, and its general and administrative spending increased only 5%. JD.com's spending on technology jumped 34% year-over-year, but that line item amounted to less than 2.5% of its revenue.That focus on cost control is much-needed, and not just for JD.com. NetEase (NASDAQ:NTES) stock rallied after its Q2 results showed that its cost leverage had driven solid profit growth. Investors have wanted Chinese stocks to start showing some margin improvement, and NTES and JD.com both delivered.JD.com's Q2 results showed that the company is moving in the right direction. And so it's a little surprising that JD stock has not responded more favorably to the results. Why JD Stock Should Keep Moving HigherIt seems that JD.com stock can -- and maybe should -- move even higher. Again, the stock trades below where it did on July 30, before JD.com posted a blowout quarter and the U.S. decided to postpone additional tariffs. At this point, the outlook of JD stock seems to be stronger than it was two weeks ago, and yet JD stock is cheaper than it was then.And JD.com is getting close to cheap or at least, it's not quite that expensive. Heading into Q2, analysts' average 2019 EPS estimate for the full year was 68 cents. JD.com now has generated 66 cents in non-GAAP EPS in just the first two quarters of the year.JD can generate EPS of over $1 in 2019, which would put its price-earnings multiple below 30. In 2o20, that multiple could drop to the low- to mid-twenties.That multiple isn't necessarily that cheap in the context of Chinese stocks right now. Rival Alibaba (NYSE:BABA) trades at less than 20 times the average fiscal 2021 EPS estimate. Internet plays Baidu (NASDAQ:BIDU) and Weibo (NASDAQ:WB) are even cheaper.But JD.com's thin margins, still only 2%+ in Q2, still have much more room to increase. And thus there's more room for the company's profit to grow, making a higher multiple justified.JD does pose some risks. JD.com hasn't always been the most consistent performer. Sentiment toward Chinese stocks on the whole still looks shaky -- and that goes double for Chinese tech, as I wrote last month. As a result, in the near-term, JD stock might be choppy.Still, for Chinese bulls, JD stock looks awfully attractive. And there appears to be room and reason for its post-earnings gains to continue.As of this writing, Vince Martin did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post JD.com Stock Can Keep Climbing appeared first on InvestorPlace.
Chinese social media company Weibo reported second-quarter earnings Monday that beat estimates, causing the stock to surge more than 14%. Monthly active users jumped 13% to 486 million.
Sina earnings and revenue for the second quarter soundly beat Wall Street estimates, sending the stock up for the China-based internet company. Ad revenue dropped 5% to $433.6 million.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. DPW Holdings (NYSE: DPW ) shares were up 261% ...
Chinese internet company Sina Corp and its Twitter-like social media subsidiary Weibo both beat Wall Street expectations for second-quarter earnings.
Weibo Corp (NASDAQ: WB ) shares are trading higher after the company reported better-than-expected second-quarter EPS and sales results . The company reported second-quarter earnings of 68 cents per share, ...
Shares of Weibo Corp. surged 6.0% in premarket trading Monday, after the Beijing-based social media company reported a second-quarter profit and revenue that beat expectations. Net income fell to $103.0 million, or 46 cents a share, from $140.9 million, or 62 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 68 cents, above the FactSet consensus of 60 cents. Revenue rose 1% to $431.8 million, to beat the FactSet consensus of $430.5 million, as advertising and marketing revenue rose 0.2% to $370.7 million.. Monthly active users grew 13% to 486 million in June, while average daily active users rose 11% to 211 million. The stock, which closed at a 3-year low on Aug. 5, has tumbled 23.3% over the past three months through Friday, while the S&P 500 has gained 1.0%.
Chinese social media company Weibo rises after it reports second-quarter earnings that beat analysts' forecasts, thanks to a 'notable acceleration' in user growth.
Weibo (NASDAQ:WB) stock reports its earnings Monday before the bell. The China-based social networking company has suffered in recent months as both the trade war and a weak revenue outlook decimated Weibo stock. The equity has continued to fall as geopolitical events weigh on most Chinese stocks.Source: testing / Shutterstock.com Although WB stock shows a great deal of potential, investors face too much risk by buying this equity approaching earnings. WB's Last Earnings Report Will Affect the Current OneAnalysts forecast WB stock earnings of 59 cents per share. This would represent a 13.2% drop from the same quarter last year when the company reported 68 cents per share in profits. They also predict revenues of $429.3 million. The company reported $426.6 million in the year-ago quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the revenue outlook for the second quarter hammered WB stock in May. The company announced a revenue outlook for the second quarter of $427 million-$437 million. This came in well below expectations. Up until then, Wall Street had expected second-quarter revenues of $481.8 million, as Regina Borsellino reported. That partially explains why WB stock has lost almost half of its value in the past four months. * 10 Cheap Dividend Stocks to Load Up On As the equivalent of Twitter (NYSE:TWTR) in China, Weibo has seen rapid subscriber growth. However, the company has struggled to monetize that growth. Weibo stock has also become caught up in the selling of Chinese stocks related to the U.S.-China trade war, despite the fact that it does not have direct exposure to the U.S. What WB Stock NeedsAs the company reports earnings, it still finds itself in need of a catalyst that will stem the decline. Weibo beat earnings estimates over the last four quarters. However, traders will want to see some indications that a massive revenue miss will not occur again.WB investors also need signs that the company will follow in the footsteps of its U.S. counterparts on better monetizing the site. Gaining traction with ads rescued both Twitter and Snap (NYSE:SNAP) in recent quarters. Weibo's investors want to see the same.Investors may have good reason to buy WB stock once the trade war abates. Weibo currently trades at a forward price-to-earnings ratio of 11.8. It has suffered a slight earnings slowdown this year. However, Wall Street forecasts earnings growth of 17.2% in fiscal 2020. They also expect annual profit increases to average in the double-digits over the next five years.To a degree, all Chinese stocks trade at a discount. This is due to investors having to buy Cayman Islands-based holding companies that represent firms in China. Still, I think the low forward P/E ratio prices in both that risk and the concerns over the trade war. The Bottom Line on Weibo StockDespite the low price, I would not buy WB stock before it announces earnings. Investors look into the future, so as long as earnings exceed expectations, I see no issues with the temporarily lower profits.However, traders also likely feel the sting of the much lower revenue outlook that came in the last earnings report. Weibo needs to avoid further surprises here. Moreover, the continued intensity of the trade war continues to spook investors. Fears that China will invade Hong Kong also have investors on edge. Chinese equities such as WB stock will feel the pain of such geopolitical actions whether or not they relate to the business.However, once the trade war ends, investors will probably see WB stock as an equity with a low P/E ratio registering double-digit profit growth. That makes for a promising outlook, eventually.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 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Weibo Stock Is Still a Risky Play appeared first on InvestorPlace.
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.
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.
BEIJING/HONG KONG (Reuters) - Chinese brand ambassadors of fashion labels from Coach to Givenchy have severed ties with the companies over products which they said violated China's sovereignty by identifying Hong Kong and Taiwan as countries. The brands are the latest to get into hot water over political issues in China, which has been more assertive in its territorial claims and how it expects foreign companies doing businesses in China to describe them. Italian luxury label Versace and its artistic director, Donatella Versace, apologised on Sunday after one of its T-shirts, depicting the territories of Hong Kong and Macau as countries, was criticised on Chinese social media.
Looking at Weibo Corporation's (NASDAQ:WB) earnings update in March 2019, analyst forecasts seem fairly subdued, as a...
The IPO market has been strong, but iQiyi (NASDAQ:IQ) stock has not joined the party. Since becoming public last year, the shares are up a mere 6% or so, even though the company is often called the Netflix (NASDAQ:NFLX) of China.Source: Shutterstock But with expectations kind of soft for IQ, could this be a good time to buy IQ stock? Or should investors hold off for now? Well,IQ stock is certainly showing signs of momentum. * 7 Stocks to Buy With Over 20% Upside From Current Levels During the quarter, IQ did report a big-time achievement: IQ's subscriber base exceeded 100 million for the first time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's what the CEO and founder of IQ, Dr. Yu Gong, said: "Leveraging our exceptional capabilities in producing original content and deploying innovative AI technology, we have achieved remarkable membership conversion through our relentless efforts to cater to the diverse entertainment needs of our users and optimize their experience on our platform. Chinese consumers are increasingly willing to pay for high-quality content, a trend underpinned by the rapid evolvement of the entertainment industry and technology in China."And the company had some other notable highlights during the quarter: * At the Mobile World Congress (MWC) in Shanghai, the Central Radio and TV Station, Shanghai General Station and the CCTV Financial Channel jointly granted IQ the "Mobile Internet Innovation Pioneer Award." IQ received the award mainly due to its use of cutting-edge AI (Artificial Intelligence) and VR (Virtual Reality) for content creation. After the news of the award was released, IQ stock jumped by 10%. * IQ launched an interactive video-platform plug-in that can be utilized in conjunction with video-editing software from Adobe (NASDAQ:ADBE). Using IQ's plug-in, a producer can easily change plots and edit story lines * IQ hosted the 2019 VIP Fan Carnival in Shanghai, which included more than 60 celebrities and 7,000 fans. Held in partnership with Weibo Corp (NASDAQ:WB), the event attracted about 1 billion views.But IQ's growth is still likely to meaningfully decelerate. For example, in Q2 analysts, on average, expect its revenues to climb by 9% year-over-year to $1.02 billion. In Q1, the company's top line jumped 43% YoY. The company's losses are also expected to continue. Analysts' average estimate is a loss of 44 cents per share of IQ stock (during the same period a year ago, the loss was 45 cents per share of IQ stock). The Issues With iQiyi StockIQ faces some tough challenges. One hurdle is the wild card of regulation. Keep in mind that the Chinese government has recently instituted new requirements for online video - with a focus on historical dramas -- which could hamper IQ's growth and hurt IQ stock.Next, the competitive environment remains intense. IQ must fight against rivals like Tencent (OTCMKTS:TCEHY) and Alibaba (NYSE:BABA), which have massive platforms and enormous financial resources.And while IQ has a hefty subscription base, the monthly payments are only$1.50 to $2 a month (IQ, however, also generates ad revenues). Furthermore, another InvestorPlace columnist, Josh Enomoto wrote: "Moreover, from a historical perspective, the Chinese don't value media content as much as we do. For decades, China was ground zero for content piracy. Guess what? Nothing has changed. Under this context, I just don't see Chinese consumers forking over their hard-earned yuan for something that they can get for free. That poses major challenges for IQ stock."In the meantime, IQ continues to spend significant amounts on original content. And those costs are likely to escalate, as IQ is planning to develop movies.In other words, it could be tough for IQ to become profitable. That is why the company has continued to raise money by a variety of means, including its recent $1 billion convertible bond offering. That move was not encouraging, as it came relatively soon after the IPO of IQ stock. The Bottom Line on IQ StockEven though the expectations for iQiyi stock are far from robust, the shares may not be worth buying right now. The company faces some tough headwinds - and they could easily cause its guidance to miss consensus expectations. So for now, investors shouldn't rush to buy IQ stock.Tom Taulli is the author of the upcoming 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 * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Can iQiyi Stock Get Its Mojo Back? appeared first on InvestorPlace.