Youku Tudou Inc (ADR) (YOKU): More Under-the-Radar Chinese Internet Stocks to Follow

Equinix of China

The Internet data center services provider, 21Vianet Group Inc (NASDAQ:VNET), saw revenue grow 26% during Q1 2013. Analysts see revenues surging 35% a year in both 2013 and 2014 to reach $450 million. With earnings remaining flat around $0.45 in 2013 and surging to $0.73 in 2014, the stock offers a compelling valuation if the company can hit those numbers.

The company recently launched the availability of Microsoft Windows Azure services in China via the 21Vianet Group Inc (NASDAQ:VNET)platform. The service offers disaster recovery, data sovereignty and improved local performance and now provides Chinese customers security, reliability, scalability and flexibility in application development and deployment.

Bottom line

While some of these Internet stocks have had minor bumps recently, the stocks still trade considerably below comparative valuations in the US. Revenue continues to grow in the 25% or greater range for all of these stocks even during a tough economic period in China and all of Asia. Once the economy rebounds and investors become more comfortable that these larger technology stocks in China don’t carry the same fraud risks as the reverse merger stocks, the sector could see huge gains down the road.

The article More Under-the-Radar Chinese Internet Stocks to Follow originally appeared on Fool.com.

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