Shares of YY were down 11.5%, near 119.85, during afternoon trades on the stock market today. YY shares initially broke out in mid-July with a 61.62 buy point. Prior to Tuesday’s action, YY shares more than doubled from that breakout.
Setting off the sell alarms was that YY’s trading volume, which was approaching 9 million shares by mid-afternoon, marked more than six times the company’s average daily volume. Shares also traded a wide range between 117 and 140.39 and were hovering near the low end of that range late in the session. Further, the stock has crashed through its 10-week moving average.
YY, a fast-growing provider of internet live streaming services, reported fourth-quarter revenue of $557.4 million, beating the consensus estimate of $551 million. Adjusted earnings of $2.27 a shares thumped estimates of $1.84. But YY’s revenue outlook fell short. It projected first-quarter revenue to be in the range of $472.5 million to $496.2 million. The midpoint of $484 million is below the consensus estimate of $493 million. During the earnings conference call, analysts also expressed concern about growing competition.
Also reporting fourth-quarter earnings early Tuesday was Baozun (BZUN) , which beat consensus estimates. Baozun stock soared 22%, trading near 44.95. Baozun, an e-commerce company that helps major brands navigate China’s growing online market opportunity, reported adjusted earnings of 42 cents per share, up 133%, on revenue of $240.6 million, up 31%, both above estimates, as was revenue guidance.
More quarterly earning reports are coming. China internet company Momo (MOMO) reports fourth-quarter earnings before the market open Wednesday, as does Autohome (ATHM). Shares of Momo climbed 2%, near 33.90. Autohome was up 1%, near 80.70.
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The consensus on Momo, which provides a mobile-based social networking platform, is for the company to report fourth-quarter revenue of $380 million, with adjusted earnings of 46 cents per share. The consensus on Autohome, which provides an online car-buying service, is for revenue growth of 7% to $268.4 million, and adjusted earnings of 69 cents.
JD.com, on Friday, reported weaker-than-expected earnings for its fiscal fourth quarter. JD.com’s revenue rose 34% to $16.9 billion, beating the consensus estimate of $16.6 billion, but adjusted earnings fell short of views.
Two weeks ago JD.com raised $2.5 billion by selling a stake in its logistics unit in order to expand its supply-chain network with leading-edge technology.
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