What is a BAT stock?
BAT is an acronym for Baidu Inc. (BIDU), Alibaba Group Holding Ltd. (BABA), and Tencent Holdings Ltd. (0700.Hong Kong, TCEHY), the three largest technology companies in China. These strains are often compared to US FAANG strains: Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix Inc. (NFLX), and Alphabet (GOOG).
- BAT stock is an acronym used to refer to the three largest tech stocks in China: Baidu Inc., Alibaba Holding Group Ltd., and Tencent Holdings Ltd.
- These companies are often compared to strong US technology stocks such as Facebook, Apple, Amazon, Netflix, Microsoft and Google.
- Founded in 2000, Baidu is China’s most popular search engine.
- Alibaba is an e-commerce company that operates two major online portals. Taobao for consumer-to-consumer transactions and Tmall for business-to-business transactions.
- Tencent is the owner of WeChat, a messaging service with over 1 billion users.
Understand BAT stocks
As is usually the case in the financial industry, there is a competitive attitude when it comes to the value of BAT shares. Many commentators cite China’s rapid economic growth and growing consumer base as signs that BAT is offering solid investment opportunities. Other investors are bullish on BAT, saying Chinese companies have large potential domestic markets and are ahead of US companies in some areas, such as mobile payments.
But skeptics point out that Chinese equities are often susceptible to speculative fluctuations, and technology is a bubbling sector anyway. These investors may claim that both FAANG and BAT shares are overvalued.
Aside from opinions about the future of BAT stocks, let’s take a look at the history of these companies and their financial position as of 2021.
Co-founded by Robin Li and Eric Xu in 2000, Baidu is China’s most popular search engine. According to the company, Baidu’s portfolio of products and services reaches over 1 billion devices each month. Baidu has been listed on NASDAQ since August 2005 and was double listed on the Hong Kong Stock Exchange (SEHK) in March 2021.
It provides an encyclopedia similar to Wikipedia, but with tighter control over editing privileges. Other services include maps, social media and music. The company is also researching artificial intelligence and self-driving cars.
As of July 2021, Baidu dominates 73.65% of the domestic market share of the search engine industry. It has a market capitalization of $ 49.47 billion. The company generated approximately $ 16.4 billion in revenue in 2020, a slight decrease from $ 16.5 billion in revenue in 2019.
Robin Li, one of the company’s co-founders, has been the CEO of Baidu since 2000.
Alibaba Holding Group Ltd. (BABA), sometimes referred to as the “Amazon of China,” is a multi-faceted company consisting of core commerce, cloud computing, digital media and entertainment, and innovation initiatives. Alibaba’s e-commerce company operates through two major online portals. Taobao for consumer-to-consumer transactions and Tmall for business-to-business transactions.
The company also created Alipay. It provides payments and other financial services to consumers and merchants running on their platform.
According to the company, Alibaba was founded in 1999 by 18 individuals and is headed by Jack Ma, a former English teacher from Hangzhou, China. In September 2021, Alibaba Ecosystem’s annual active consumer reached a milestone of over 1.18 billion. This includes 912 million consumers across China’s retail market, local consumer services, digital media and entertainment platforms, and approximately 265 million consumers outside of China.
As of September 4, 2021, Alibaba Group has a market capitalization of $ 461.66 billion. The company’s total revenue for fiscal year 2021 was $ 109.48 billion in US dollars, an increase of 41% from approximately $ 78.98 billion in the previous year.
Daniel Zhang has been the CEO of the company since 2015.
Founded in 1998 in Shenzhen, China, Tencent has a platform that offers a number of products and services, including social media, music, web portals, e-commerce, mobile games, internet services, payment systems, smartphones and multiplayer. It is a multi-faceted technology company. online game. Tencent is also the owner of WeChat, a messaging service that has more than a billion users a month.
The app supports popular payment services and many other features, so Fast Company calls it “all apps” in China. One of Tencent’s notable multiplayer online games is Clash of Clans, which boasts tens of millions of users.
As of September 4, 2021, Tencent has a market capitalization of $ 609.66 billion. The company reported revenue of $ 74.69 billion in 2020 and $ 58.46 billion in 2019, a 27.7% increase.
One of the company’s co-founders, Pony Ma, is the CEO of Tencent.