Are These The Best Chinese Tech Stocks To Invest In Ahead Of May 2022?
While U.S.-based firms continue to feel the pressure from broader economic headwinds, Chinese tech stocks are rising today. By and large, this section of the stock market has been under pressure from growing government crackdowns up until now. For the most part, the industry is gaining momentum after China’s top leaders spoke on their latest initiatives to boost economic stimulus. With this update also comes speculation about a possible lightening of the Chinese government’s regulatory crackdowns on Chinese tech firms. As a result of all this, some of the biggest names in the space are now gaining plenty of attention.
At the same time, these companies remain hard at work as well. On one hand, you have the likes of Xpeng (NYSE: XPEV) actively expanding into markets beyond China. The Chinese electric vehicle (EV) firm is now open to receiving orders for its P5 electric sedan in Europe. As it stands, the company’s Dutch, Swedish, and Danish order portals are online. On the other hand, agriculture-focused e-commerce company Pinduoduo (NASDAQ: PDD) is actively working with farmers to improve crop quality via sustainable growing methods. Should the government decide to bolster the economy via its vast tech industry, these five names would be worth checking out in the stock market today.
Chinese Tech Stocks To Buy [Or Sell] Now
- JD.Com Inc. (NASDAQ: JD)
- Baidu Inc. (NASDAQ: BIDU)
- Futu Holdings (NASDAQ: FUTU)
- Alibaba Inc. (NYSE: BABA)
- Nio Inc. (NYSE: NIO)
JD.com Inc.
Starting us off today, we have JD.com, a Chinese e-commerce company that has one of the biggest B2C online retailers in China by transaction volume and revenue. The company also is a leading supply chain technology and service provider. In fact, its infrastructure allows consumers to buy whatever they want, whenever they want. It also provides a Retail-as-a-Service to help businesses drive productivity and innovation across a range of industries. On April 27, 2022, the company announced some highlights of third-party merchant growth on its platform.
Diving in, the number of product launches on JD.com increased by more than 150% in 2021. JD’s business ecosystem has attracted and retained customers with higher purchasing power as well. In the first three months of 2022, the average daily users of JD’s third-party stores grew 84% among the group aged 26-45. This group is normally regarded as customers who spend the most per capita with the strongest purchasing power. Given this piece of news, is JD stock a top Chinese stock to invest in right now?
Baidu Inc.
Following that, we have Baidu, a multinational tech company that specializes in Internet-related services and artificial intelligence (AI). Impressively, it is an early adopter of AI to make content discovery on the internet easier. The company is also one of the very few that offers a full AI stack, with infrastructure consisting of AI chips, deep learning framework and core AI capabilities. BIDU stock is up by over 10% on today’s opening bell.
Last month, the company announced its fourth-quarter and fiscal year 2021 financial results. Revenue for the quarter was $5.19 billion, increasing by 9% year-over-year. “Baidu concluded a solid 2021, evidenced by a strong growth in our non-advertising business, particularly the acceleration of Baidu AI Cloud. We brought our AI capabilities to China’s traditional industries and public service sector, to aid in the improvement of their efficiency and operational expansion. Furthermore, Apollo Go provided around 213,000 rides in the fourth quarter, almost doubling sequentially, reaffirming our leadership position in the global autonomous ride-hailing market,” said Robin Li, Co-founder, and CEO of Baidu. With that being said, is BIDU stock a buy?
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Futu Holdings Ltd
Futu Holdings is a digitized brokerage and wealth management for investors all around the globe. In essence, its advanced investing platform has transformed the investing experience and primarily serves the emerging affluent population. The Company provides investment services through its proprietary digital platforms, Futubull and moomoo, each a highly integrated application accessible through any mobile device, tablet, or desktop. FUTU stock is up by over 9% today.
Last month, it also reported its fourth-quarter financials. Firstly, total revenues for the quarter were $205.5 million, an increase of 35.1% year-over-year. Secondly, net income for the quarter was $64 million. The company says that this was driven by an increase in the total number of paying clients at over 1.2 million. Trading volume also rose to over $150 billion as well. All things considered, is FUTU stock worth adding to your portfolio?
Alibaba Group Holding Ltd.
Alibaba is a tech company that facilitates businesses in the modern age. It enables businesses to transform the way they operate and improve their efficiencies. Aside from commerce, the company also has cloud and digital media businesses. Its Ant Group provides digital payment services and offers digital financial services to customers and businesses on its platforms.
Last week, the company announced that it will be joining the low carbon patent pledge to accelerate the adoption of green technology. In detail, it will pledge to make nine energy efficiency patents available for free for the first time. Also, the company’s Alibaba Cloud aims to have its global data centers running entirely on clean energy by 2030. Dr. Chen Long, VP of Alibaba Group, says that the company is committed to taking broader social responsibility to use its technology to level the playing field and empower the wider social groups, creating long-term value for all. Will you consider buying BABA stock for these reasons?
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Nio Inc.
Last but not least, we will be taking a look at Nio. In brief, it is a leading name in the Chinese EV field that specializes in designing and manufacturing smart premium EVs. These EVs boast cutting-edge features such as autonomous driving and digital cockpits that support virtual reality displays. Not to mention, the company is also hard at work expanding its EV charging network. The likes of which cater to Nio users across China and Europe.
Alongside its peers in the Chinese tech space, NIO stock is gaining as well. As it stands, the company’s shares are now gaining by over 4% at today’s market open. For one thing, the company remains hard at work on the operational front despite the recent weakness in its stock. Just earlier this week, Nio celebrated the production of its 200,000th EV in China. This would be less than four years since it kicked off operations. Even with its current momentum, Nio is planning to launch two new models by the end of 2022. As the company continues to go from strength to strength, would NIO stock be a top pick in your books?
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