Dangdang and Youku Poised to Benefit from Surging Demand
February 24 2012 - 7:20AM
Marketwired
After a strong start to 2012, Chinese internet stocks have lagged
the market of late as disappointing quarterly earnings results have
soured investor optimism on the sector. Despite being up more than
2 percent over the last month, TickerSpy's Chinese Internet Stocks
index (CHDOT) lags the S&P 500 by roughly 1.3 percent. The
Paragon Report examines investing opportunities in China's Internet
Sector and provides equity research on E-Commerce China Dangdang
Inc. (NYSE: DANG) and Youku Inc. (NYSE: YOKU). Access to the full
company reports can be found at:
www.paragonreport.com/DANG
www.paragonreport.com/YOKU
While higher costs have compressed margins, revenues throughout
the industry continue to skyrocket. Ad revenue from China's online
video sites surged 99.9% to 6.27 billion yuan in 2011 and is
expected to exceed 12.6 billion yuan this year, according to
iResearch. Meanwhile, mobile internet in China continues to attract
more users. According to Analysys International, revenues from
China's mobile Internet services amounted to 86.22 billion yuan in
2011 and the market had 431 million users as of the end of last
year.
Online gaming is becoming a significant growth driver in the
Chinese internet sector. Analysys International says that from
China's online gaming market grew 8.3% quarter on quarter and 28.5%
year on year to 10.29 billion yuan in Q4 2011. The number of
browser game players in China is expected to grow 36.4% to 75
million in 2012 before reaching 97.5 million by the end of 2014,
Analysys International predicts.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on China's Internet Sector register with at
www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Youku Inc. operates as an Internet television company in the
People's Republic of China. Its Internet television platform
enables consumers to search, view, and share video content across
various devices. Earlier this week Youku announced in a press
release that it had signed an agreement to extend its successful
partnership with m1905.com, a leading online movie site wholly
owned by China Central Television's CCTV-6.
E-Commerce China Dangdang Inc. operates as a
business-to-consumer e-commerce company in the People's Republic of
China. It engages in the sales of Chinese and foreign language
books, and music CDs, VCDs, and DVDs through its Website
dangdang.com.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer
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