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What’s motivating stock momentum in China’s internet giants?

Morning Brief Co-Hosts Myles Udland and Seana Smith turn their attention to Chinese internet stocks, focusing on the stock performances of industry titans such as Alibaba (BABA) which is set to report fiscal fourth-quarter earnings on Tuesday, Tencent Music Entertainment Group (TME), and JD.com (JD).

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Let’s take a look at Alibaba, that stock is up this morning, about 3% results from Alibaba expected tomorrow before the opening bell.

We also saw um within the Chinese internet space.

Tencent Music come out this morning.

They had better user growth figures than analysts were expecting that stock is up 3% and this kind of pulls back from A I and really just gets to, you know, the trade du Jour, speaking of risk sentiment in the market, um Chinese internet stocks K Web, that’s that um index that ETF has been up about 30% almost since the bottom in February.

It’s about 23% over the last three months.

Uh You look at these stocks over the last month and you’ve just got some huge winners in here.

Your pin duo, duos of the world 10 Cent, not Tencent Music, but 10 Cent.

That’s that stock.

The ad R up 23% over the last month.

Um K Webs up 15% of last month, jd.com is up almost 30% over that period of time.

Uh I don’t think there were a lot of people coming out and banging the table for Chinese internet stocks.

But you know, that fine, tell me the A I fundamental case, maybe there’s a notion, I mean, we’ve seen some positive regulatory, um, chatter out of China.

But ultimately, when you are looking around and saying the market’s ripping what’s gotten killed and we kind of does the utilities last week.

Uh, what, what can I buy and take my chance on, you know, you have seen Chinese internet stocks really catch a bit over the last three months.


And, and so then the question is how much of a runway is there really left?

Considering that so much of the fundamentals, there still is a heck of a lot of weakness within that picture, right?

Whether or not they’re just betting on some of those being down names and maybe you can make a case for if you looked into some of these businesses, tenet media here specifically, I was going through the analysts reaction and they were pretty much overall optimistic just about the fact that the moat that this company specifically has within the industry, some of that earnings momentum likely to continue here through 2024.

So whether or not it’s going to be some of these individual names that make the most sense at this time or not, it’s going to be that rising tide lifts all boats and beating down or investing in buying, beaten down names that clearly have not participated in the rally yet.

But you got a question.



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