2023-05-22 19:03:57
Wall Street analysts expressed optimism about the performance of shares of large Chinese technology companies, even if the recovery appears to be mixed with the companies and their recent profits.
While Baidu’s profits and revenues exceeded analysts’ expectations, and Tencent returned to profitability, Alibaba reported revenues below analysts’ expectations.
Coinciding with the decline in Alibaba shares, Jeong Chao, an analyst at Barclays, said before the Group of Seven summit that took place at the end of last week: I think there are some geopolitical concerns..investors are worried about possible sanctions on China and Chinese companies.
The White House had stated that the G7 aims to “remove risks, not separate” from China, while stressing that America expects continued economic engagement with China.
Analysts expressed optimism about Alibaba’s announcement of its plan to spin off its cloud computing business as a publicly traded company, as well as a plan to list its logistics and grocery businesses.
Wedbush analyst Dan Ives told CNBC that Alibaba’s plan to spin off its cloud computing unit is a step in the right direction.
Barclays analyst Shaw predicted that the market value of Alibaba’s cloud computing unit would reach $100 billion in two or three years.
Overall, Shao noted that the sector is performing very well, while the e-commerce sector is recovering, although the recovery is not as fast as the market had hoped.
Walald Keung, head of Internet research in Asia at Goldman Sachs, told CNBC: “We think the e-commerce numbers are showing some recovery on a one-year and two-year basis.”
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