Chinese Internet Stocks Posting Mixed Results
May 18 2012 - 7:20AM
Marketwired
China's internet stocks have posted mixed results recently as
government restrictions, high costs, and a shift to mobile devices
have made it difficult for companies to tap into the nation's vast
online market. It is estimated that only 37.7 percent of China is
online according to the China Internet Network Information Center
(CINIC). Five Star Equities examines the outlook for companies 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.FiveStarEquities.com/DANG www.FiveStarEquities.com/YOKU
China currently has more than 500 million internet users.
China's internet growth has lagged in recent years, 55.8 million
users were still added in 2011, according to the CINIC. Estimates
from eMarketer, a digital-marketing research firm, projects that
online advertising revenue is projected to grow from $4.6 billion
in 2011 to $9.5 billion in 2014. With tight restrictions from the
government and growing competition, internet companies have
struggled to turn users into reliable sources of revenue.
"A lot of these problems are coming from the fact that most of
these firms are still figuring out what the ultimate business model
is going to be," said David Wolf, chief executive of Wolf Group
Asia. In regards to slowing internet user growth, he added, "It
will be about who has the deeper pockets and who is going to be
able to evolve their service to keep users. We are looking at more
spending before we see more revenue."
Five Star Equities releases regular market updates on China's
Internet Sector so investors can stay ahead of the crowd and make
the best investment decisions to maximize their returns. Take a few
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E-Commerce China Dangdang Inc. is a leading business-to-consumer
e-commerce company in China. Dangdang recorded an operating loss of
RMB107.2 million ($17.0 million) in the first quarter of 2012, as
compared with an operating income of RMB1.3 million in the
corresponding period in 2011.
Youku Inc. is China's leading Internet television company. Their
Internet television platform enables users to search, view and
share high-quality video content quickly and easily across multiple
devices. Youku, which stands for "what's best and what's cool" in
Chinese, is the most recognized online video brand in China. The
company received an Internet Publication License from China's
General Administration of Press and Publication (GAPP) on March
28.
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