Anyone covers this stock ? It is the Chinese Youtu. From the fundamental perspective, I do expect a decent financial statement in the incoming 3rd quarter. From the standpoint of technological analysis, there are three gaps so far from the begining of this month. The only thing i am still expecting is the volume. Once the volume shark up, then i think it is an buy opportunity. Anyway, i really would like to hear from you guys about YOKU.
It was a pump and dump by GS. Its pretty another chinese youtube knock off with little to no revenue and no shot at ever being profitable enough to warrant a $2+B market cap (which its at right now, and was over $6B a couple of months ago)
For a web-based business it seems to be fairly undeirable as it business model is not scalable. It has huge fixed cost base. Video’s high data flow demand means the business’s investment in server farms increase pretty much straightline with its traffic flow (but not necessarily revenues). Tight control over the internet in China means it can’t rely on user-generated content like Youtube, which is a big disadvantage. They even have their own news and content creation team, just like regular TV broadcasters, and have to buy/license contents from broadcasters/movie companies. I’d say it is a mix of Youtube/Netflix, but with the worst from both sides.
yikes wouldnt touch any of these firms …anyone doing so should be aware they are not playing on a level field in terms of firm disclosure caveat emptor
I do agree that GS dump those investors. But i somehow disagree with you regarding the fundamental value. With the number of internet users increasing in China in the recent year and the prosperity of Chinese economy, the revenue and earning will undoubtedly experience a significant increase while the fixed cost will surely decrease from the current level given the technology advances in the foreseeable future and so is the management cost. Also, it seems like most of technological companies normally will take couple years to realize profit. In terms of the tight regulation in China, i bet it will be relieved under civilization of China and pressure from the other countries. Today, there is an another gap coming up with an increased volume. so totally there has been FOUR gaps from the beginning of this month. Personally, it is the first time for me to see so many gaps with a stock which isn’t experiencing some really negatively news but has FOUR gaps in one month. Doesn’t it mean a rebounding is around the corner? ZeroBonus Wrote: ------------------------------------------------------- > It was a pump and dump by GS. > > Its pretty another chinese youtube knock off with > little to no revenue and no shot at ever being > profitable enough to warrant a $2+B market cap > (which its at right now, and was over $6B a couple > of months ago)
Have you looked at all into the competitive environment? Comparing YOKU to youtube implies YOKU has few legit competitors. Sure Netflix, Hulu, etc offer similar services, but youtube is the far and away market leader for user-generated videos and has much more name recognition than Hulu and I’m pretty sure it’s still losing money. YOKU has tudou, ku6, qiyi, PPTV etc, including several with the backing of major players BIDU, SINA, SOHU, and the Chinese gov’t. Not to mention the regulatory risk. The huge population argument only holds so much water. Short-term the stock may bounce, but it won’t be based on fundamentals.