Chinese Internet Stocks Tumble amid Safe Haven Trade (BIDU, SINA, RENN, DANG, YOKU, SOHU, NTES, CTRP)

Published on Tuesday, 13 December 2011 22:42 Written by Gerard Lerod

New York, December 13^th (TradersHuddle.com) – Chinese Internet Stocks tumbled, underperforming the broad market index, as participants embraced safe haven assets following the Fed statement and weaker than expected retail sales in the U.S. Renewed euro zone jitters also spurred the safe haven trade amid a sharp drop in the euro, while Chinese stocks closed at a new 33-month low.

Baidu (NASDAQ:BIDU), the owner of the largest Chinese Internet search engine, tumbled 4.25% to $122.22 after the 20day moving average crossed the 50day moving average to the downside in the prior session. Baidu was under pressure after Credit Suisse maintained its Neutral rating, while cutting its target price to $130 after the firm lowered earnings estimates, citing lower keyword prices. The stock lost 2.7% last week and so far this week, Baidu has tumbled 6.4%, trading as low as $121.66. Trading was above average, with 6.8 million shares exchanging hands.

Sina Corp. (NASDAQ:SINA), the Chinese online media company and owner of the Weibo microblogging service commonly referred to as the Twitter of China, lost 2.43% to $57.01 after trading at a new yearly low of $56.02 on about average trading volume. Earlier in the month, Deutsche Bank upgraded the stock to a Buy from Hold.

Renren (NYSE:RENN), the leading real name social networking Internet platform in China, lost 1.37% to $3.59 after trading as low as $3.53. The stock traded above its prior session low of $3.42. Renren has lost 2.4% so far this week, extending its year to date plunge to just above 80%.

Dangdang (NYSE:DANG), the ecommerce site that it’s known as the Chinese Amazon.com, tumbled 5.48% to $4.66, extending its weekly decline to 10.3%, practically erasing last week jump of 11.6%, which came after Dangdang surged 20% in one of the days on news that it will follow Amazon.com into the digital books, as it will launch an e-book platform on December 21^st. Dangdang has calculated support at $4.56 and resistance at $5.78.

Youko.com (NYSE:YOKU), the Chinese version of you tube, fell 1.4% to $18.63 after trading as low as $18.42. The stock extended its weekly tumble to 6.5%, turning lower for the month this week. Youko had a difficult November, falling 14.5% after the company missed earnings expectations on revenues that were above consensus, while it provided downside revenue growth guidance for the current quarter.

Sohu.com (NASDAQ:SOHU), the Chinese search engine and Internet portal, tumbled 5% to $47.70 on reaction to the Baidu news. The stock has lost 3.5% so far this month. Earlier in the month, UBS upgraded Sohu to a Buy from Hold.

NetEase.com (NASDAQ:NTES), the online game developer, fell 1.34% to $47.16 after trading as low as $46.77. So far this month, the stock has jumped 4.6% after earlier in the month the company’s Board approved a new $50 million share repurchase program. NetEase has calculated support at $40.69 and resistance at $47.68.

And Ctrip.com (NASDAQ:CTRP), the one-stop China travel service provider, jumped 1.6% to $23.61 after trading as low as $23.21. The stock logged a new yearly low of $22.84 in the prior session. So far this month, the stock has plunged 13.2%.