Internet Stocks In China Struggle Amid Challenges – Investor’s Business Daily
Alibaba (BABA) and Tencent Holdings (TCEHY), two of China’s largest internet companies, have reported double-digit gains in revenue for years. But now they’re sputtering amid multiple challenges that have waylaid most internet stocks in the country.
The Chinese companies are confronting a convergence of threats to their businesses. They include a resurgence of Covid-19 shutdowns, burdensome regulations, supply-chain woes, higher logistics costs, currency depreciation, inflation and a real-estate downturn.
Moreover, these obstacles come amid a worsening economy at home and abroad. China’s National Bureau of Statistics last week reported that economic activity cooled in October. Retail sales contracted unexpectedly for the first time in five months and exports slowed, as did factory output growth.
The impact of these challenges showed up in the quarterly earnings reports of Alibaba and Tencent this past week. Both companies beat expectations on earnings but posted weak revenue…
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source: https://news.oneseocompany.com/2022/11/18/internet-stocks-in-china-struggle-amid-challenges-investors-business-daily_2022111836055.html
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