Watch TCEHY, KC, MOMO Stock
When Alibaba (BABA) bottomed recently at $73.28, its surge to over $120 gave suffering bears hope. Alibaba, whose quarterly revenue growth slowed, is one of many China-based firms offering traders tremendous opportunities.
Traders should recognize profits from BABA stock by trading the stock. Hold the stock too long in hopes of China’s glorious growth in 2017-2019 will damage a portfolio. Last week, news resurfaced that the Securities and Exchange Commission is growing its list of Chinese firms facing delisting.
DiDi, the Uber (UBER) of China, has the highest risk while it remains listed on the New York Stock Exchange. DIDI shareholders thought that a Hong Kong listing would end the stock’s listing uncertainty. Instead, China continued its review of DiDi’s data security practices. This delays its delisting.
Last week, Tencent (TCEHY), a supplier of digital games, instant messaging, and entertainment, posted its slowest ever growth. Revenue grew by just 6%, its slowest growth on record.
Kingsoft (KC), an infrastructure software firm, reported a 2-cent loss.
Momo (MOMO), which renamed itself Hello, posted a weak outlook. Its revenue declined by 3.2% Y/Y to $576.6 million. Tantan, which is a Bumble (BMBL) or Tinder of China, failed to add to growth.
The value of Chinese firms is unknown at this time. They are a gamble that investors should avoid