Based on growth figures alone, Huya is clearly the better buy. However, Huya’s post-IPO pop has boosted its market cap to $4.5 billion – which gives it a lofty P/S (price-to-sales) ratio of 13. iQiyi, however, trades at less than five times trailing sales.
Those valuations indicate that iQiyi is probably the safer investment. Huya has phenomenal growth, but there’s too much optimism baked into the stock at these levels.
Bilibili BILI is a youth-generated video-sharing site + interactive live video streaming. Is the only company that is not owned by any of the BAT. Risky?
Apparently all internet companies are closely monitored by the government.
China censors its internet. It’s not really a trade issue. I wish they don’t. If Trump succeeded in tearing down their great firewall I will vote for trump next time.
American companies have been enjoying great success in China. Ask Apple. Ask GM. Ask Walmart.
The crybabies were mostly out innovated and out executed by the Chinese, like eBay and yes, Amazon. There were no barriers to eBay and Amazon back in the early 2000s. They were just not good enough. That’s why you never see bezos blamed anyone but amazon itself for its lack of success in China.
Actually Xi is quite fair, is just the American companies don’t want to play by the rules. Jack Ma has made it very clear, you want to operate in another country, need to follow the rules of the country (not just China, every nations)… he said that in an interview defending Yahoo! many years ago. Forcing another country to adopt the same rules as in USA is bullying.
Xi is gradually removing this requirement, things can’t happen overnight. Tesla recently set up a Chinese factory totally owned by Tesla. Talk about the future not about what is past and even present… no overnight changes.
Streaming is exploding around the world, and China is no exception.
Streaming is a very broad term. It’s simply a delivery of content over the internet. What differentiates streaming companies are 1) what role they serve in the streaming industry, 2) what content they deliver, and 3) how they monetize the content.
Huya is a live streaming company with a heavy focus on user-generated gaming content.
Bilibili’s main business is devoted toward millenial user-generated short-form content.
iQiyi is a subscription service + ads.
Amazingly they are worth multi-billion dollar market capitalizations.
Twitch - owned by AMZN.
YouTube gaming - owned by Google.
Facebook - yes, gaming is a social activity.
Mixer - owned by Microsoft.
Smastcast
Mobcrush
Periscope- owned by Twitter.
So all FANG are into streaming video.
From all deals announced by Apple, it will go into video streaming too.
Oddly, streaming video business is put under big companies in USA while they are spun off from big companies in China. Manch, do you understand why?
