12.06k followers • 18 symbols Watchlist by Motif Investing
Chinese internet companies grow their users bases and their ability to monetize them, could result in rapid revenue and earnings growth.
Curated by Motif Investing
China's already the biggest internet market in the world. But their 591 million users represent a tiny 44% penetration rate. Which means there's plenty of room to grow. During the first half of 2013, 26 million Chinese opened a browser for the first time.
But here’s the angle: China's internet market is dominated by local companies. They'll skip over Google to search with Baidu, which controls 65.7% of the market. China's online advertising market reached $11 billion in 2012, up 46.8% over 2011 and is expected to grow further. China has already surpassed the U.S. as the world's largest market for smartphones and by the end of 2013 it is expected to be twice the size of the U.S. market. All of which has many investors looking East for potential good fortune.
We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than $1.00 or a market capitalization less than $100 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.Who made these selections?
Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.How are these weighted?
First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.
More details on how we build and weight watchlists are available here.
|Watchlist||Change today||1-month return||1-year return||Total return|
|Symbol||Company name||Last price||Change||% change||Market time||Volume||Avg vol (3-month)||Market cap|
|JD||JD.com, Inc.||61.18||-0.31||-0.50%||4:00 pm GMT-4||8.52M||14.67M||97.28B|
|NTES||NetEase, Inc.||454.51||-1.87||-0.41%||4:00 pm GMT-4||453.43k||916.77k||63.24B|
|BIDU||Baidu, Inc.||124.6||-0.46||-0.37%||4:00 pm GMT-4||2.09M||4.16M||42.95B|
|VIPS||Vipshop Holdings Limited||22.17||+0.03||+0.14%||4:00 pm GMT-4||3.68M||6.08M||14.91B|
|ATHM||Autohome Inc.||84.3||+0.33||+0.39%||4:00 pm GMT-4||403.55k||673.12k||10.04B|
|WUBA||58.com Inc.||55.74||-0.03||-0.05%||4:00 pm GMT-4||1.32M||1.87M||8.36B|
|WB||Weibo Corporation||35.1||-0.26||-0.74%||4:00 pm GMT-4||585.71k||1.90M||7.95B|
|YY||JOYY Inc.||77.6||+0.03||+0.04%||4:00 pm GMT-4||903.33k||1.25M||6.25B|
|MOMO||Momo Inc.||20.29||-0.16||-0.78%||4:00 pm GMT-4||2.92M||4.68M||4.23B|
|BZUN||Baozun Inc.||40.51||-0.99||-2.39%||4:00 pm GMT-4||433.68k||1.30M||2.55B|
|SINA||SINA Corporation||39.76||-0.19||-0.48%||4:00 pm GMT-4||776.30k||819.75k||2.37B|
|BITA||Bitauto Holdings Limited||15.77||-0.01||-0.06%||4:00 pm GMT-4||75.60k||602.78k||1.12B|
|SOHU||Sohu.com Limited||20.41||+0.22||+1.09%||4:00 pm GMT-4||998.33k||925.47k||801.47M|
|CYOU||Changyou.com Limited||10.74||+0.01||+0.09%||4:00 pm GMT-4||406.53k||406.53k||575.75M|
|JMEI||Jumei International Holding Limited||19.93||-0.01||-0.05%||4:02 pm GMT-4||81.88k||81.88k||227.59M|
|WBAI||500.com Limited||3.68||+0.06||+1.66%||3:59 pm GMT-4||108.12k||66.54k||158.24M|
|TOUR||Tuniu Corporation||1.26||+0.08||+6.78%||4:00 pm GMT-4||2.18M||753.93k||155.44M|
|SFUN||Fang Holdings Limited||12.83||-0.28||-2.14%||3:59 pm GMT-4||4.65k||18.98k||115.14M|
Digital entertainment titan Tencent continues to drum up its music ambitions. On Tuesday, Tencent Music Entertainment, majority-owned by Tencent with a 55.6% stake, announced establishing a new joint label with its licensing partner Universal Music Group to discover, develop and promote Chinese artists domestically and to the world. TME, which spun off from Tencent and went public in the U.S. in 2018, commands the lion's share of China's music streaming industry through three apps -- QQ Music, Kugou and Kuwo.
Baidu (NASDAQ: BIDU), which owns China's top online search engine, was once considered one of that country's top tech stocks. But over the past three years, its stock has lost roughly 40% of its value as the company has faced tougher competition in digital ads.
Sohu.com's (SOHU) second-quarter 2020 results reflect decline in online advertising revenues, partially offset by improvement in online games business amid coronavirus lockdown.