3 Chinese Digital Giants To Follow Now

The major tech stocks are dropping for a variety of reasons, and investors are feeling jittery. In the US, Facebook (FB) is facing fears of regulatory pressures and declining user acquisition while Apple (APPL) is looking at falling iPhone sales. Across the Pacific, Chinese tech players face their own pressures, from declining consumer spending to a depreciating yuan. Plus the ongoing US-China trade war is obviously weighing on sentiment. However from a bull perspective, now is the time to pick up lucrative stocks at a discount.

For example, Chris Bertelsen, CEO of Aviance Capital Management, said the trade war with the US is likely to calm down. He advises investors to buy major Chinese tech stocks now before the opportunity passes.

With this in mind we will look at three of China’s giant tech players. All share: a strong upside potential, an internet base, and various combinations of e-commerce, AI, and social media applications. Dipping into the comments of TipRanks top-rated analysts, we can get a feel for how their outlook is shaping up for the months ahead.

Alibaba Group Holdings (BABA – Research Report)

Alibaba is the 800-pound gorilla of Chinese tech companies, with a market cap worth almost $400 billion. The company offers a wide variety of services, including e-commerce, online payment, search engines, and cloud computing. The spinoff AliExpress platform connects Chinese merchants with buyers outside of the country.

In terms of stock performance, BABA is benefiting from last month’s Singles Day. The biggest online shopping day of the year in China – and largely a creation of Alibaba – netted the company $30.8 billion in one-day gross sales, a 27% increase from last year, which itself set a record for sales. That success largely offset the earlier Q3 report that showed slowing growth rates for the e-commerce platform’s sales as Alibaba expands into rural China and a new domestic customer base that, while numerically large, is likely to spend less per capita than its urban counterpart.

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Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

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