Pre-market US stocks | BEKE-W Q1 earnings greatly exceed expectations! Tesla meets with Indian officials, Netflix's low-priced advertising package reaches 5 million monthly active users.
Cisco fell nearly 4%, BEKE-W surged 4%, ZTO EXPRESS-W rose 3%, Tesla rose 0.87%, JD.com and BIDU-SW fell 1%, BILIBILI-W and CLOUD MUSIC rose nearly 1%, LI AUTO-W rose 1.35%, XPENG-W fell nearly 2%, and Douyu rose 3%.
US Stock News
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Douyu's Q1 revenue was RMB 1.483 billion, with a net profit of RMB 145.17 million and an earnings per ADS of RMB 0.05. Live broadcast revenue decreased by 20.7% YoY to RMB 1.369 billion.
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Market news: Tesla met with Indian officials to discuss local incentive plans and automotive industry policies, as well as the possibility of building electric vehicle and battery factories in India in the future.
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According to Reuters, Netflix executives said on May 17 that the recently launched ad-supported subscription package has nearly 5 million active users per month, emphasizing the breadth of its programs to potential advertisers.
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In Q1, ZTO Express achieved revenue of RMB 8.983 billion, a YoY increase of 13.7%; gross profit of RMB 2.523 billion, a YoY increase of 55.8%; and adjusted net profit of RMB 1.92 billion, a YoY increase of 82.1%.
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Cisco's Q1 revenue was USD 14.6 billion, with a net profit of USD 3.212 billion.
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Beike's Q1 revenue was RMB 20.278 billion, with a net profit of RMB 2.75 billion.
Pre-market Movement
In pre-market trading, Dow Jones futures were slightly up, while Nasdaq futures and S&P 500 futures were up 0.15%.
Cisco fell nearly 4%, with order volume dropping significantly in Q3.
Institutional Viewpoints
1. Jefferies: Raised Tencent's target price and reiterated a buy rating
Jefferies released a report stating that Tencent's management emphasized the advantages of its main products. With the support of content upgrades, the products have long-term development potential. Meanwhile, some advertising businesses can benefit from the recovery in consumption, and commercial payments depend on the reopening process. The bank reiterated a buy rating on Tencent and raised its target price from HKD 465 to HKD 470.
2. Morgan Stanley: Raised Tencent Music's target price to USD 10.5 and upgraded its rating to buy
Morgan Stanley predicts that music business revenue will surpass social entertainment service revenue in the next quarter, and music business profit will exceed social entertainment service profit next year. Subscription revenue in the first quarter grew quarterly at a record rate, and the momentum is expected to continue into next year. The bank expects Tencent Music's operating profit margin for the music business to exceed 15% for the full year. The bank raised its earnings per share forecast for this year and next year by 20%. It also said that Tencent Music's valuation, excluding cash, is equivalent to a forecast P/E ratio of 9 times, which is attractive.