Tag Archives: bidu

Apple Invests $1 Billion In Uber’s China Rival Didi Chuxing

Apple ( AAPL ) will invest $1 billion in Uber’s China ride-hailing rival Didi Chuxing, backed by Chinese Internet giants Alibaba ( BABA ) and Tencent ( TCEHY ). Apple CEO Tim Cook told Reuters  the move will help it better understand the Chinese market. “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he said. Didi Chuxing, formerly known as Didi Kuaidi, is the dominant ride-hailing service in China, operating in more than 400 cities. Didi Chuxing said Apple’s $1 billion stake is its largest investment ever. Uber also is expanding heavily in China, teaming up with Baidu ( BIDU ), the third member of the Baidu-Alibaba-Tencent trio of Chinese Internet giants. Didi also has alliances with U.S.-based Lyft, India’s Ola and SE Asia’s Grab. The effort also could help develop an Apple Car. Apple has never confirmed plans to build an electric vehicle with some autonomous elements, but has hired dozens of automotive engineers for “Project Titan.” Currently, Apple’s public auto efforts are focused on CarPlay, an infotainment service linked to the iPhone. Cook said: “That is what we do today in the car business, so we will have to see what the future holds,” he said. Apple shares closed 2.35% to 90.34 on the stock market today, hitting its lowest levels since June 2014. Apple also lost its crown as the most valuable company to Google parent Alphabet ( GOOGL ).

Why Qihoo, YY, Going-Private Chinese Tech Stocks Are Rebounding

U.S.-listed Chinese stocks  Qihoo 360 ( QIHU ), YY ( YY ), E-Commerce China Dangdang ( DANG ),  Momo ( MOMO ) and Vianet ( VNET ) rebounded Tuesday after tumbling for days on reports that Chinese regulators might put the brakes on their plans to delist from the American market and relist in mainland China. The China Securities Regulatory Commission is mulling limits on the number of reverse mergers from previously foreign-listed companies, sources told Bloomberg. But that eased fears of an outright ban. YY YY shares gained 5% in afternoon trade on the stock market today  but have tumbled about 17% since last Wednesday alone. YY stock sliced both its 50-day and 200-day lines on Friday. Reports surfaced late last week of possible regulatory scrutiny regarding the music and entertainment social network. Qihoo 360 After losing 11.3% Monday and briefly sipping below its 200-day line, Qihoo shares rebounded more than 8%. The China-based search engine and security firm announced in December a $9.3 billion deal to go private. Qihoo is a rival to much-larger Baidu ( BIDU ). Baidu has its own problems involving sponsored posts, with the stock edging down Tuesday but tumbling 13% so far this month. Momo Momo, which said last June that it had received a going-private bid from its CEO and affiliates, rose 8% intraday but remain 21% below its close of May 4’s trading session. Momo, a Chinese mobile dating app, is currently trading below its 50-day and 200-day levels. Dangdang Dangdang shares perked up nearly 11% intraday Tuesday after tumbling for three straight trading days, including a 13.3% free fall Monday. The e-commerce firm received a going-private proposal last July. Vianet Vianet rose 15% intraday after crashing 29% over the prior three sessions to the lowest level since September 2014. The Internet data carrier got a buyout offer last June. The China Securities Regulatory Commission believes some of these companies’ valuations are too high, Bloomberg  reported, citing people familiar with the matter.

China Tech Stocks Fall As Shanghai Nears Lows On Growth, Debt Fears

U.S.-traded shares of China technology companies were mixed Monday after the Shanghai exchange had another big decline Monday, with one market technician warning that the index could re-test lows set in January-February. Ralph Acampora, analyst at Altaira Capital Partners, tweeted that the Shanghai exchange “is now expected to retest its January/February 2016 low at 2,638.” Baidu ( BIDU ) stock was down more than 3% in early trading in the stock market today . Baidu announced new measures amid a probe into sponsored advertising by health care outfits. JD.com ( JD ) stock was down nearly 10%, though the e-commerce company early Monday posted Q1 revenue that rose 47% from the year-earlier quarter. Qihoo 360 Technology ( QIHU ) stock was off 3%, shares in Sohu.com ( SOHU )  slipped 2%, while NetEase ( NTES ) stock edged down about 1%. NetEase reports earnings on Wednesday. Alibaba Group ‘s ( BABA ) stock rose fractionally Monday, while Sina ( SINA ) stock was down more than 4% and  Ctrip.com International ( CTRP ) nearly 3%. The Shanghai exchange fell 2.8% on Monday to 2832.11, after sliding last week. IBD Take: YY among the China Internets falling; IBD Stock Checkup can help you assess. The People’s Daily, the government’s official newspaper, on Monday warned that China’s economic recovery might stall. The economic trend may be “L-shaped,” meaning flat growth, rather than a stronger “U-shaped” recovery, said the People’s Daily. Even so, the article said the government will not use excessive investment or rapid credit expansion to stimulate growth. One concern among China observers is the country’s widespread debt. Bank of America/Merrill Lynch, in a research report published Monday, referred to global investor George Soros’ remarks in April that China’s situation marks an “eerie resemblance” to the U.S. in 2005 to 2008, just before the financial crisis sparked the Great Recession. But BofA sees what it calls a better comparison, looking at Japan in the 1990s. “While there may be some parallels between the precrisis situation in the U.S. and China today, there arguably are even more important differences, including the nature of the increase in credit, extent of contagion risks to the broader economy, and scope for government policy to preclude or offset,” said the report. “Indeed, if we had to identify a historical antecedent for the current situation in China, a more applicable choice might be Japan during the 1990s. “That said, China’s unique situation belies any simple comparison with past crises in either developed or emerging markets, and warrants its own more in-depth investigation.” Another concern is increased scrutiny on the number of U.S.-listed China tech companies that plan to go private or delist in the U.S. in favor of China markets, where they have expected they could see higher valuations. China has said it is “reviewing market concerns about a record wave of businesses seeking higher mainland valuations with relistings there,” Bloomberg reported Sunday . Among companies with such plans, Momo ( MOMO ) stock was down 11% early Friday, while YY ( YY ) was down 9%.