Deutsche Bank on Chinese Internet Sector: 'Online Ads to Maintain Robust Growth in 2012;' BIDU, SINA Top Picks
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A number of stocks in the Chinese Internet group are trading sharply higher Tuesday afternoon, potentially on the heels of a bullish note from Deutsche Bank this morning.
While analysts at Deutsche said "online gaming continues to face pressure...", they are modeling for "online ads to maintain robust growth in 2012 driven by:
"Despite China's still TV-dominated ad market, we expect digital ads, particularly internet ads, to continue to take market share from TV over the next several years," the analysts said. "Among digital ad channels, we expect search, video and social ads to gain share faster than other channels."
Shares of Baidu are up 5.3 percent Tuesday afternoon while shares of SINA are up 11.2 percent. Elsewhere in the sector: Youku (Nasdaq: YOKU) up 10.5 percent, Sohu.com (Nasdaq: SOHU) up 6.7 percent and Tudou (Nasdaq: TUDO) up 9.2 percent.
Although shares of Focus Media (Nasdaq: FMCN) are up nearly 8 percent this afternoon, much of the upside can likely be attributed to a new dividend policy.
Seemingly on the other side of the trade, shares of China Digital TV (NYSE: STV) are down 0.9 percent, shares of Shanda (Nasdaq: SNDA) are up just 0.15 percent and shares of Giant Interactive (NYSE: GA) are up only 0.2 percent.
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While analysts at Deutsche said "online gaming continues to face pressure...", they are modeling for "online ads to maintain robust growth in 2012 driven by:
- budget shift from offline to online media
- govt regulation on TV ads."
"Despite China's still TV-dominated ad market, we expect digital ads, particularly internet ads, to continue to take market share from TV over the next several years," the analysts said. "Among digital ad channels, we expect search, video and social ads to gain share faster than other channels."
Shares of Baidu are up 5.3 percent Tuesday afternoon while shares of SINA are up 11.2 percent. Elsewhere in the sector: Youku (Nasdaq: YOKU) up 10.5 percent, Sohu.com (Nasdaq: SOHU) up 6.7 percent and Tudou (Nasdaq: TUDO) up 9.2 percent.
Although shares of Focus Media (Nasdaq: FMCN) are up nearly 8 percent this afternoon, much of the upside can likely be attributed to a new dividend policy.
Seemingly on the other side of the trade, shares of China Digital TV (NYSE: STV) are down 0.9 percent, shares of Shanda (Nasdaq: SNDA) are up just 0.15 percent and shares of Giant Interactive (NYSE: GA) are up only 0.2 percent.
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