Market review this week
This week, the Hang Seng Index rose 2.39%, the Hang Seng technology index rose 1.76%, the Dow Jones industrial index fell 4.58%, the NASDAQ index fell 7.55%, the Internet Index rose, and the e-commerce and education indexes fell. Among the key stocks of Internet media, heart company (+ 8.67%), cat’s eye entertainment (+ 8.60%), pinduoduo (+ 8.31%) led the gains this week.
Microsoft announced the acquisition of Activision Blizzard, and the war investment department was dissolved
On January 18, Microsoft announced that it would acquire Activision Blizzard for us $68.7 billion. After the transaction is completed, Microsoft will become the third largest game company in the world after Tencent and Sony. Well known games such as call of duty and world of Warcraft will be included in Microsoft in the future. On January 19, the relevant person in charge responded: “the company checked and analyzed the business at the beginning of the year, decided to strengthen the business focus, reduce the investment with low synergy, disperse the employees of the strategic investment department into various business lines, and strengthen the cooperation between the strategic research function and the business. The relevant businesses and teams are still planning and discussing”, It is regarded as a response to the previous discussion that “the war investment department has indeed been dissolved”.
Mango Excellent Media Co.Ltd(300413) released the performance forecast and Perfect World Co.Ltd(002624) released the profit warning of 2021
On January 21, Mango Excellent Media Co.Ltd(300413) released the performance forecast for 2021. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will reach 2040-2140 million yuan, 1982.15 million yuan in the same period of last year, yoy + 2.92% – 7.96%, and the revenue growth of advertising and operators will exceed 30%. On January 22, Perfect World Co.Ltd(002624) issued a profit warning for 2021. It is estimated that the company’s net profit attributable to shareholders of Listed Companies in 2021 will be 350-390 million yuan, a decrease of 77.40% – 74.81% over the same period of last year. Among them, there is periodic pressure on the performance of game business during the transformation period, and the profit is expected to decrease by 70.68% – 69.81% year-on-year.
Investment advice
This week, Microsoft acquired Activision Blizzard plus meta universe layout. People’s financial review briefly commented that the game is an important part of the digital economy and the best experience entrance and important terminal scene of meta universe. It affirmed that game technology plays a positive role in the upgrading of traditional industries and the going to sea of cultural industries. Industry public opinion tends to be positive, and going to sea is still a relatively clear layout main line. The national development and Reform Commission and other nine departments issued several opinions on promoting the standardized, healthy and sustainable development of the platform economy, affirmed the good development trend and positive role of the platform economy, made it clear that it is an important part of the digital economy, and focused on guiding the healthy and sustainable development of the platform economy in the direction of openness, innovation and enabling development. The strategic position of digital economy is clear, and the normalization of Internet regulation is becoming clearer. The Internet leader is expected to break through in the new era of digital economy with mature organizational structure and technological innovation. It is suggested that we should pay attention to Alibaba -SW, -W, Tencent holdings, NetEase -S, Kwai -W, Tong Dao hunting, etc.
Risk tips
Intensifying geopolitical conflicts; Drastic changes in industry competition pattern; Long term suspension of edition number, etc
