How In The World Did It Come To This? FTCH Equity To Be Wiped Out in Debt Deal

Wedbush Morning Call - Nov 29 2023 7:00AM

Shares Up 25% On Media Reports CEO/Founder Looks To Take The Biz Private

BZ: Positive On 1Q24 Performance, Supported By Listings Growth In Service, Commodity Manufacturing & Other Sectors

We are positive about BZ’s performance in 1Q24. Due to the natural recovery of China’s underlying domestic economy and State economic stimulus, the job market has shown some improvements since 4Q23. The number of total paid job listings on the platform is likely to be up 6.7% Y/Y in 1Q24. As the policy front is becoming more pro-business, we believe BZ is likely to benefit as a result.

PDD: Positive On 1Q24 Performance Driven By Rapid Growth From Temu

We are positive about PDD’s performance in 1Q24 driven by Temu. TEMU’s contribution continues to be significant, as it not only contributes to topline growth, but also to the margins. We estimate that TEMU likely contributes approximately 30% of GMV to PDD’s revenue. We estimate GMV Q/Q growth to be ~18.5% in 1Q24, with approximately two-thirds of GMV coming from the US market.

BIDU: Positive On Long-Term Outlook; Monetization In AI To Drive Future Growth

BIDU will report 1Q24 results on May 16th before the markets open with an 8am ET conference call. We are neutral on BIDU’s performance in 1Q24, and its advertising business is in line with China's economy. We believe China’s economy has reached a bottom and should begin its slow recovery soon. While advertising may not see meaningful improvements right away, we do expect gradual improvement as the year progresses. We are positive about BIDU’s long-term outlook, as the company continues to invest in AI and the monetization of its AI capabilities can be a growth engine for the company.