Why iQIYI, Full Truck Alliance, and GDS Holdings Soared This Week
Lots of Chinese tech stocks soared this week, including iQIYI (NASDAQ: IQ), Full Truck Alliance (NYSE: YMM), and GDS Holdings Limited (NASDAQ: GDS), which were up 19.3%, 33.2%, and 30.2%, respectively, at the end of trading on Thursday.
Virtually all Chinese tech stocks rose after last-week's widespread protests paradoxically sparked hopes that China would relax its strict COVID-19 lockdown measures in due course. Some additional commentary from Chinese authorities this week seemed to indicate officials were, in fact, looking for ways to reopen sooner rather than later. The question is, will actions follow the soothing rhetoric?
None of these three tech companies reported earnings this week, although each reported third-quarter earnings the week prior. Interestingly, both Full Truck Alliance and GDS Holdings beat both revenue and profit expectations handily, while iQIYI was mixed, delivering a revenue beat but a miss on profit expectations. Perhaps that explains its relatively lackluster performance this week, compared with the other two.
Source Fool.com
