CITIC Securities: Continues to be bullish on investment opportunities in the US Internet sector for the next 6-12 months.

CITIC Securities research report stated that based on the first quarter reports and second quarter outlook of mainstream internet companies, the sector still possesses strong performance resilience. It is predicted that the performance of internet companies in the first half of 2025 will continue to maintain high resilience, although performance expectations in the second half of the year may be adjusted with changes in tariff policies. In the short to medium term, sectors such as streaming media, gaming, and local life, which are less affected by tariffs, are still safe havens. If tariff negotiations continue to improve, then pro-cyclical sectors such as online advertising, e-commerce, and consumer finance may see a reversal in performance expectations. Considering current profit expectations and valuation levels, there is optimism for investment opportunities in the US internet sector over the next 6-12 months after the performance expectations reverse. Recommendations for internet sector companies are: 1) aggressive choices in response to tariff and policy reversals; 2) defensive choices in the short to medium term; 3) focus on potential targets for future deregulation.