Are all good for Baidu, Tencent and Alibaba in China?

26 May 202311 months ago babelfish

Here's what the latest quarterly reports from Baidu, Tencent, Alibaba and more say. The analysis of the BG Saxo Study Centre

The last week saw the release of Chinese technology quarterly reports from JD.com, Meituan, Baidu, Tencent and Alibaba. The results were mixed, but stock price movements were consistent. Following the release of the results, the sector made gains, but then fell providing mixed results in a difficult macroeconomic environment.

BAIDU EXCEEDS EXPECTATIONS

Baidu's first quarter results beat market expectations and showed some good indications of recovery in the Chinese advertising market

HALF TENCENT

Tencent showed a notable 11% year-on-year increase in revenues, mainly attributed to online gaming. But, contrary to Baidu's signals, its advertising segment was a failure.

ALIBABA AMAZES, NOT ALWAYS POSITIVE

Analysts were impressed by Alibaba's earnings before interest tax depreciation amortization (EBITDA) up 60%, but commerce and cloud revenues fell short of expectations. The company announced a full spin-off of the Cloud Group, as well as plans to raise external capital for Alibaba International Digital Commerce.

THE MARKET DISAPPOINTMENT FOR CHINA

Last week, Chinese data disappointed, showing a 7.9% drop in imports compared to expectations and basically flat growth. Last week the disappointment began with weaker-than-expected growth in industrial production and retail sales, while youth unemployment rose to a record 20.4% and house prices indicated a slowdown.

Market sentiment was further dampened by the weakening renminbi, which crossed the 7 mark, reflecting growing concerns fueled by a slew of lackluster economic data. In addition, foreign investors withdrew about $6 billion from Chinese domestic bonds in April, funneling their funds out of the country.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutto-bene-per-baidu-tencent-e-alibaba-in-cina/ on Fri, 26 May 2023 11:06:32 +0000.