Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>JPM Expects Tariffs to Have Little Impact on Dotcoms; Top Picks BABA/ TRIP.COM/ TME/ TENCENT
Recommend 29 Positive 45 Negative 22 |
||||
|
||||
|
JPMorgan released a research report expecting the impact of the escalation of the US tariff war on the revenue of Chinese internet companies will be mostly indirect, i.e. weak exports will lead to weak consumption, which will in turn dampen the demand for advertisements, except for cross-border e-commerce business. The broker currently estimated that the tariff dispute will have a minimal impact on online consumption, which is forecasted to be less than 0.5% JPMorgan believed that the most affected stocks in the technology sector will be PDD Holdings (PDD.US), as its US business accounts for more than 10% of total revenue and contributes a single digit percentage to profit, while more defensive stocks will be TENCENT (00700.HK) and NTES-S (09999.HK) (NTES.US), as they see digital entertainment, especially online games, as counter-cyclical, with less revenue contribution from the US market. JPMorgan's top picks are BABA-W (09988.HK) (BABA.US), TRIP.COM-S (09961.HK) (TCOM.US), TME-SW (01698.HK) (TME.US) and TENCENT. The broker also recommended investors to avoid BIDU-SW (09888.HK) (BIDU.US) for now. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
