217.50 -0.44 (-0.20%)
After hours: 7:08PM EDT
|Bid||215.50 x 1000|
|Ask||222.00 x 900|
|Day's range||212.61 - 219.42|
|52-week range||184.60 - 377.64|
|Beta (3Y Monthly)||1.09|
|PE ratio (TTM)||28.28|
|Earnings date||13 Nov 2018 - 19 Nov 2018|
|Forward dividend & yield||2.44 (1.15%)|
|1y target est||293.91|
There are rumors that Baidu (BIDU), China’s Internet search engine giant, has partnered with Tron. Tron is a leading global blockchain-based operating system. Cryptocurrency operates autonomously without any central bank interference. Bitcoin is an example of a cryptocurrency.
The Chinese gaming and internet company received some kind words from Wall Street last month. Here's what investors need to know.
In this part, we’ll discuss the valuation expectations for Chinese gaming majors and Alibaba (BABA). Tencent (TCEHY) has a “buy” recommendation from one analyst. The company has revenue forecasts of 322.5 billion yuan, 443.5 billion yuan, and 569.4 billion yuan for the fiscal years ending on December 31, 2018, 2019, and 2020, respectively. Stock price loss was partially offset by the revenue projections, which translated into impressive dividend yields and cheaper valuations for the company. Tencent expects PE multiples of 34.5x, 25.1x, and 17. ...
So far, 2018 has been tough for Tencent (TCEHY) due to the US-China trade war and Chinese regulatory bodies cracking down on the games that Tencent launched. The company’s stock value has experienced a massive loss. Tencent initiated share buybacks in September after four years to enhance the EPS by lowering the number of outstanding shares. China’s leading gaming company retaliated by developing other product lines and diversifying its revenue earning base. Tencent announced the IPO of Tencent Music Entertainment on October 3. The IPO intends to generate $2 billion in the US listing. ...
This analysis is intended to introduce important early concepts to people who are starting to invest and want to begin learning the link between company’s fundamentals and stock market performance. Read More...
China stocks were early movers Friday, as McDonald's topped the Dow and Mazor Robotics spiked on takeover news. Micron Technology dragged chip stocks lower.
Is there a way to take profits on a stock before it makes a sell signal? The short answer is yes. Use the 10-day moving average.
How have operating expenses impacted Weibo’s operating margin? Weibo’s (WB) operating expenses rose 82% YoY to $209.9 million in the second quarter of 2018. Operating expenses used up 45% of the revenue in the second quarter of 2017 compared to 51% and 49% in the first and second quarters of 2018, respectively.
What led to the gross margin growth of Weibo? Weibo’s (WB) cost of revenue rose 23% YoY to $61.8 million in the second quarter of 2018. Weibo’s gross profit increased by 80% YoY to $364.8 million in the second quarter of 2018.
Weibo’s (WB) net income increased by 167% and 121% in 2016 and 2017, respectively. The company’s remarkable revenue and operating income growth played a crucial role in driving net income growth. Weibo succeeded in reducing its cost of revenue and operating expense margins, leading to higher net income margins. The company saw net income of $183.5 million and $405.7 million in 2016 and 2017, respectively. The net margin expanded from 14% in 2015 to 35% in 2017. Improved gross and operating margins drove the growth in net margin. ...
What drove Weibo’s operating margins? On the brighter side, the expenses as a percentage of revenue (or operating expense margin) have fallen from 62% in 2015 to 44% in 2017. Weibo’s improved gross profit and operating expenses led to growth of 276% and 189% in income of operations for 2016 and 2017, respectively.
What led to the decline in operating and net margins in Q2 2018? This final part of the series will focus on NetEase’s (NTES) and its peers’ operating and net margins for the second quarter of 2018. NetEase’s operating income declined 31% YoY (year-over-year) and increased 93% QoQ (quarter-over-quarter) to 2.3 billion yuan ($0.4 billion) in the second quarter of 2018.
What drove the gross margins of Weibo? Weibo’s (WB) cost of revenue rose by 21% and 35% in 2016 and 2017, respectively. Turnover taxes from higher revenue, infrastructure costs from increased traffic and video content, content licensing fees for games services, and revenue sharing cost of advertisement production drove the costs in both the years.
Weibo (WB) saw revenue growth of 37% and 75% in fiscal 2016 and 2017, respectively. Revenue amounted to $655.8 million and $1.2 billion for these years, respectively. Advertising and marketing services and value-added services are the company’s two reportable business segments. The share of revenue from advertising and marketing grew from 84% in 2015 to 87% in 2016 and 2017. The company’s advertising and marketing revenue came from three broad categories: third parties, Alibaba and SINA, and other related parties.
Its gross profit expanded 8% YoY (year-over-year) and 22% QoQ (quarter-over-quarter) to 7.2 billion yuan ($1.1 billion) in the second quarter of 2018. The gross margin for email and others decreased from 0% in the second quarter of 2017 to -1% in both the first and second quarters of 2018.
Weibo’s (WB) net income expanded 80% YoY to $156.1 million in the second quarter of 2018. Weibo also succeeded in reducing its costs and expenses as a percentage of revenue. The operating margin had significantly influenced net margin.
Weibo (WB), considered to be the “Twitter of China,” surpassed Twitter’s user base (TWTR) in May 2017. The company’s competitors for user traffic, content, and social networking services and messenger include Tencent Holdings, Alibaba Group Holding, Baidu, NetEase, and Facebook. The S&P 500 and the tech-heavy NASDAQ ended in the red amid US-China trade war concerns on September 6. The NASDAQ Composite has gained 14.8% YTD and has a PE ratio of 25.5x. Let’s investigate the valuations of Weibo and its peers as of September 6.
Let’s look now at NetEase’s (NTES) revenue growth in the second quarter of 2018 followed by a comparative peer analysis. NetEase’s revenue grew 22% YoY (year-over-year) and 15% QoQ (quarter-over-quarter) to 16.3 billion yuan ($2.5 billion) in the second quarter of 2018. Advertising services contributed 4% of revenue in the second quarter of 2017 against 3% and 4% of revenue in the first and second quarters of 2018, respectively.
In this part of the series, we’ll concentrate on NetEase’s (NTES) annual operating and net margins followed by a comparative peer analysis. Its operating income increased 74% in 2016 and declined 4% in 2017. The decrease in 2017 was due to lower gross profit and higher operating expenses, as we saw in the previous part. Its operating income was 12.6 billion yuan and 12.2 billion yuan ($1.9 billion) for 2016 and 2017, respectively. Its operating margin decreased from 32% in 2015 to 22% in 2017.
What led to NetEase’s decline in annual gross margin? In the previous parts of this series, we looked at NetEase’s (NTES) revenue drivers, segments, and cost of revenue growth and compared them to its peers, the BAT stocks. NetEase’s gross profit expanded 62% to 21.7 billion yuan in 2016 and expanded 20% to 25.9 billion yuan ($4 billion) in 2017.
In this part of the series, we’ll look at NetEase’s (NTES) annual revenue trend and revenue drivers followed by a comparative peer analysis. Its revenue increased 67% and 42% in 2016 and 2017, respectively. It was 38.2 billion yuan and 54.1 billion yuan ($8.3 billion) for 2016 and 2017, respectively.
In this series, we’ll compare the valuations of NetEase (NTES) with critical Chinese technology stocks as of September 4. The series will look at the reasons behind NetEase’s valuations and do a comparative analysis of peer Chinese technology stocks, or BAT stocks.
On one hand, the US is initiating a trade war against China, and the Chinese government has launched a crackdown on online gaming companies. Optimistic revenue and earnings estimates continue to drive the valuations of Chinese tech stocks despite the loss in stock value. Tencent Holdings (TCEHY) last traded at a 29% discount to its 52-week high price.