China Stocks

stocks

#161

IQ Stock is the Latest Hot Issue from China

It’s also younger U.S. investors who are snapping up IQ stock, seeing it as their chance to grab the brass ring of fat profit, now that companies like Netflix and Alphabet (NASDAQ:GOOGL) are all grown up.

Such traders panic easily, resulting in a stampede to get out of IQ. That is, price can plunge by a huge % all of a sudden.


#162

I kind of want to compliment your wisdom on this. It’s a very interesting thinking point.


#163

eSports - HUYA

HUYA Inc. is a game live streaming platform in China.
China is the world’s largest games market in terms of revenue and gamers. In 2017, gaming revenues were $32.2 billion in China, versus $26.4 billion the U.S. The disparity is mostly driven by the fact that China has 646 million gamers, essentially double the entire U.S. population.

Huya reported having 92.9 million monthly active users. The company boasts the largest livestreaming gaming community in China. Revenue in 2017 reached $335.8 million, up about 174% from the prior year, in Chinese Yuan. It reported a loss of $15.5 million.

No idea whether HUYA is over-valued or would appreciate through time. Is fascinating that video games have advanced so much.


#164

Shit. Real? Sounded a bit… Too much…


#165

May be they mean game accounts?


#166

It’s still just another ad platform. WW advertising revenue isn’t that large of pie and a lot of companies are going after it. The total pie doesn’t justify the market cap of all the companies going after it. It’ll be a bit of a zero sum game. Most ad revenue new companies get is from taking it away from others.


#167

If so, means nothing. Literally, nothing :slight_smile:


#168

Online stealing from traditional? Or online steal from online?

Just guessing. Hard to believe 40+% of the population is playing games.


#169

Advertising revenue is tied to many things:

  1. Growing # of people with phones (yes, it’s still growing in terms of users, but very slowly these days - next billion user is a thing - advertising is valued less there, however).
  2. Growing # of hours user spend online, shift to mobile from desktop.
  3. Traditional brand demand is moving to online and mobile (tv is still the king here, but yt and other video streaming is taking its pie).
  4. Growing economy - advertising is strongly tied to gdp.

1 is almost fixed now. 2 is still growing, however. The apps, sites constantly change. Instagram and FB has a huge lead here, but they are saturating, so switch from one app to another is real.
3 - brand will also eventually move to performance (how many people sign up for geico instead of how many impressions etc).

There will be a time when users will spend as much time as they can on their phones, then it’ll be about who does better ML and who has better info about google’s intentions. Hint: the answer is google and maybe amazon.


#170

First, online steals from traditional. Once they reach saturation, they’ll have to steal from each other.


#171

Someone did a study on advertising spending and it’s a pretty steady low 1.x% of GDP.


#172

Yeah, I posted it before. Meanwhile consumer spending is 70%. It’s a way bigger market and reason to be bullish AAPL amd AMZN.


#173

AMZN’s TAM may be a lot bigger but margin is much lower than advertising. It’s also much more capital intensive than serving ads. It’s a great business for sure, but even amazon is making big money off ads nowadays.


#174

Capital intensive also creates a moat. Who else will spend all the billions on robotics and locations to minimize labor and delivery costs? Walmart is the only one that could come close. That’s why FBA is now a majority of volume. It’s cheaper for sellers to do that than build their own warehouses.


#175

#176

Emerging Market Selloff Hits China as Stocks, Yuan Resume Slide

A spiraling currency crisis in Turkey has worsened sentiment for developing markets globally. China traders were already grappling with the wildest equity swings in more than two years, with sentiment shifting daily as investors considered whether support measures from China’s authorities would be enough to offset risks to economic growth.

Are these events early warning to an eventual global economic slowdown that lead to US slowdown and bear stock market?


#177

More likely an EM meltdown like the Asian financial crisis of 1997. Were you in SG back then?


#178

Slaved 18 hours per day making crumbs with no time to monitor world news.


#179

Depending on whether Turkey’s problem spreads, this is either something small like the Mexican peso crisis, medium like the Russian default, or big like Asian financial meltdown. But I think that’s the max. It can’t drag US down.

Every time the US tightens and USD rises, some EM will always get in trouble.


#180

Turkey??? Where is Turkey??? :rofl: