China Internet Stocks Fall On Quarterly Earnings, Disappointing Data

Image result for China Internet StocksShares of China internet stocks YY (YY) and Huya (HUYA) tumbled Tuesday as both reported quarterly earnings late Monday that presented a weaker-than-expected outlook for the third quarter.

Other China internet stocks were down as retail sales in China for July slowed further.

YY plunged 14%, near 75.40, during morning trading on the stock market today. Huya crashed by 13.4%, near 28.50.

Other China Internet Stocks Fall

Among the other China internet firms to fall: Shares of Alibaba (BABA) slipped 2.8%, near 172.70. (JD) skidded by 3.6%, near 33.80. And Tencent Holdings (TCEHY) lost 3.4%, near 44.20.

Also falling was China-based Baozun (BZUN), which reported quarterly earnings before the market open Tuesday. Baozun dropped 2.3%, near 51.30.

Baozun reported revenue of 175.2 million, up 31% in local currency from the year-ago period. It reported adjusted earnings of 14 cents per share, topping views of 13 cents. Baozun provides services that help companies sell goods online.

Huya, YY Outlook Falls Short

After the market close Monday, Huya reported revenue of $156.9 million. That beat the analyst estimates for $145.7 million. Huya earnings of 6 cents per share matched views for adjusted earnings per share.

But Huya said it expects third-quarter revenue of 1.19 billion to 1.22 billion yuan, or about $172.7 million to $177 million. That would be more than double vs. a year earlier in local currency terms, but signals a possible miss of analyst forecasts for 1.22 billion yuan. Huya is a provider of internet livestreaming services.

YY, also a provider of livestreaming services, reported revenue of $570.2 million. That beat the consensus estimate of $536.2 million. Revenue was up 45% in local currency from the year-ago quarter. YY reported adjusted earnings of $2.03, beating views of $1.77. It expects third-quarter revenue of 3.89 billion to 4.02 billion yuan, about $564.5 million to $583.3 million. But that also is below analyst expectations.