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The Zacks Analyst Blog Highlights: Alphabet, JD.com, Tencent, Facebook, Netflix and Baidu
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For Immediate Release
Chicago, IL –August 15, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet, Inc. (GOOGL - Free Report) , JD.com, Inc. (JD - Free Report) , Tencent Holdings Limited (TCEHY - Free Report) , Facebook, Inc. , Netflix, Inc. (NFLX - Free Report) and Baidu, Inc. (BIDU - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can Google Demolish the Barrier to China Reentry?
Recent reports suggest that Google-parent Alphabet, Inc. is planning to expand in China. Although Google’s core services, Google Search, Gmail and YouTube, remain blocked in China, the company is involved in providing digital tools and support to large a number of Chinese app developers and manufacturers, mobile companies and advertisers, who want to reach out to their global customers.
Google had pulled out of China eight years ago over censorship issues. However, if reports are to be believed, Google now plans to re-enter the China market. For this, Google is reportedly planning to launch a censorship-friendly mobile search engine, wherein its Chinese partners might play a key role in its efforts to expand in that country. However, there are challenges aplenty for Google in China, which the company needs to overcome.
Google Takes Alternate Approach
Although Google’s core services, Google Search, Gmail and YouTube remain blocked in China, the company has played a key role in supporting local tech companies. Google provides digital tools and support to a large number of Chinese app manufacturers, developers and advertisers, who want to reach out to global customers.
Google decided to pull out of China in 2010 over censorship issues. However, it has been providing its digital services and tools to many local companies. Reportedly, the company now plans to re-enter the China market and launch a censorship-friendly mobile search engine codenamed Dragonfly.
Local Partnerships Hold the Key
Understandably, for Google, partnerships with these local companies will play a key role in convincing the Chinese government to let it expand in China. Google can cite that such partnerships have been helping the Chinese economy to grow.
Moreover, such local partnerships could result in Google providing customers its other services such as cloud computing and other business apps, thus helping its business to grow in China. Google recently invested $550 million in Chinese e-commerce giant JD.com, Inc. for a 1% stake.
Also, in July, Google launched an Artificial Intelligence (AI) game on WeChat. In January, the company signed a patent cross-licensing agreement with Tencent Holdings Limited to expand its presence in China. Alphabet carries a Zacks Rank #3 (Hold).
Challenges Galore for Google
Understandably, this move comes at a time when growing customer and subscriber base has become a priority for big tech companies, especially after slowing user growth has started hurting these companies. Shares of tech giants such as Facebook, Inc. and Netflix, Inc. recently took a hit after the companies reported slowing user growth in their quarterly results.
Re-entering the China market won’t be that easy given the strict regulations the Chinese government imposes on Internet companies. China has more than 770 million Internet users but most access it with the help of a device running Google’s open source Android operating system.
However, China has been actively encouraging local tech companies that have seen the rise of search engine giant Baidu, Inc. and e-commerce behemoth JD.com. Also, Baidu’s popularity has grown on the vernacular quotient. This certainly will raise competition for the company. Google has been focusing on this area and launched a Google Translate App in China in 2017. Recently, it also added a file management app to its local Chinese app store.
That said, before Google launches any such app, it would require approval from the Cybersecurity Administration from China along with a clearance from the Chinese government. And the laws have become are a lot stricter than they was eight years ago.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Alphabet, JD.com, Tencent, Facebook, Netflix and Baidu
For Immediate Release
Chicago, IL –August 15, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet, Inc. (GOOGL - Free Report) , JD.com, Inc. (JD - Free Report) , Tencent Holdings Limited (TCEHY - Free Report) , Facebook, Inc. , Netflix, Inc. (NFLX - Free Report) and Baidu, Inc. (BIDU - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Can Google Demolish the Barrier to China Reentry?
Recent reports suggest that Google-parent Alphabet, Inc. is planning to expand in China. Although Google’s core services, Google Search, Gmail and YouTube, remain blocked in China, the company is involved in providing digital tools and support to large a number of Chinese app developers and manufacturers, mobile companies and advertisers, who want to reach out to their global customers.
Google had pulled out of China eight years ago over censorship issues. However, if reports are to be believed, Google now plans to re-enter the China market. For this, Google is reportedly planning to launch a censorship-friendly mobile search engine, wherein its Chinese partners might play a key role in its efforts to expand in that country. However, there are challenges aplenty for Google in China, which the company needs to overcome.
Google Takes Alternate Approach
Although Google’s core services, Google Search, Gmail and YouTube remain blocked in China, the company has played a key role in supporting local tech companies. Google provides digital tools and support to a large number of Chinese app manufacturers, developers and advertisers, who want to reach out to global customers.
Google decided to pull out of China in 2010 over censorship issues. However, it has been providing its digital services and tools to many local companies. Reportedly, the company now plans to re-enter the China market and launch a censorship-friendly mobile search engine codenamed Dragonfly.
Local Partnerships Hold the Key
Understandably, for Google, partnerships with these local companies will play a key role in convincing the Chinese government to let it expand in China. Google can cite that such partnerships have been helping the Chinese economy to grow.
Moreover, such local partnerships could result in Google providing customers its other services such as cloud computing and other business apps, thus helping its business to grow in China. Google recently invested $550 million in Chinese e-commerce giant JD.com, Inc. for a 1% stake.
Also, in July, Google launched an Artificial Intelligence (AI) game on WeChat. In January, the company signed a patent cross-licensing agreement with Tencent Holdings Limited to expand its presence in China. Alphabet carries a Zacks Rank #3 (Hold).
Challenges Galore for Google
Understandably, this move comes at a time when growing customer and subscriber base has become a priority for big tech companies, especially after slowing user growth has started hurting these companies. Shares of tech giants such as Facebook, Inc. and Netflix, Inc. recently took a hit after the companies reported slowing user growth in their quarterly results.
Re-entering the China market won’t be that easy given the strict regulations the Chinese government imposes on Internet companies. China has more than 770 million Internet users but most access it with the help of a device running Google’s open source Android operating system.
However, China has been actively encouraging local tech companies that have seen the rise of search engine giant Baidu, Inc. and e-commerce behemoth JD.com. Also, Baidu’s popularity has grown on the vernacular quotient. This certainly will raise competition for the company. Google has been focusing on this area and launched a Google Translate App in China in 2017. Recently, it also added a file management app to its local Chinese app store.
That said, before Google launches any such app, it would require approval from the Cybersecurity Administration from China along with a clearance from the Chinese government. And the laws have become are a lot stricter than they was eight years ago.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.