Youku Tudou Inc (ADR) (YOKU), SINA Corp (SINA): Chinese Internet Companies You Should Buy this Month

Earlier this year, SINA Corp (NASDAQ:SINA) and Alibaba announced a new Weibo-Taobao platform. In this, Weibo’s users will experience a new type of display for Alibaba owned Taobao’s products, including a detailed description of products making it easier to purchase products from Taobao directly. It will also facilitate integration of accounts on both platforms, therefore users can use either account to log onto both platforms. It is expected that this collaboration will bring $380 million in revenue to Weibo from advertising and social commerce services for the next three years. Out of this, it will see $30 million this year, and total Weibo ad revenue is expected to reach $137 million in 2013 from $51.4 million in 2012.


All three companies are expecting good revenue growth from their respective collaborations because of the growing number of internet users in China. Youku Tudou Inc (ADR) (NYSE:YOKU)’s collaborations with QUALCOMM, Inc. (NASDAQ:QCOM) and SINA Corp (NASDAQ:SINA) will benefit the company in both the mobile and PC internet market., Inc. (ADR) (NASDAQ:BIDU)’s acquisition of PPS will increase the company’s market in the growing online video streaming market in China, thus creating revenue growth opportunity. SINA’s collaboration with Alibaba and introduction of new features in its Weibo mobile app is expected to generate good advertising revenue for the company. Looking at each company’s potential revenue growth opportunity, I recommend a buy for all three stocks.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool recommends Baidu and SINA . The Motley Fool owns shares of Baidu.

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