Lates News

The research report from CITIC Securities stated that based on the first quarter report and second quarter outlook of mainstream internet companies, the sector still maintains strong performance resilience. It is predicted that the internet companies' performance in the first half of 2025 will continue to show high resilience, and although performance expectations for the second half of the year may be adjusted due to changes in tariff policies, the worst-case scenario is likely to have already occurred. In the medium to short term, sectors such as streaming media, gaming, and local life, which are less affected by tariffs, are still safe havens. If the tariff negotiations continue to improve, pro-cyclical sectors such as online advertising, e-commerce, and consumer finance are expected to see a turnaround in performance expectations. Taking into account the current profit expectations and valuation levels, there is optimism for the investment opportunities brought about by the reversal of performance expectations in the US internet sector in the next 6-12 months. Recommendations for internet sector companies include: 1) Offensive choices in response to tariff and policy reversals; 2) Defensive choices in the medium to short term; 3) Focusing on potential targets of future deregulation.