Shares of YY.com (YY) flashed a sell signal Tuesday as the stock plunged through its 50-day moving average in huge volume, following its fourth-quarter earnings report late Monday.
YY stock plunged 12.3% to close at 118.76 on the stock market today. YY shares initially broke out in mid-July with a 61.62 buy point. Prior to Tuesday’s action, YY shares more than doubled from that breakout.
Setting off the sell alarms was that YY’s trading volume, which was approaching 9 million shares by mid-afternoon, marked more than six times the company’s average daily volume. Shares also traded a wide range between 117 and 140.39 and were hovering near the low end of that range late in the session. Further, the stock has crashed through its 10-week moving average.
YY, a fast-growing provider of internet live streaming services, reported fourth-quarter revenue of $557.4 million, beating the consensus estimate of $551 million. Adjusted earnings of $2.27 a shares thumped estimates of $1.84. But YY’s revenue outlook fell short. It projected first-quarter revenue to be in the range of $472.5 million to $496.2 million. The midpoint of $484 million is below the consensus estimate of $493 million. During the earnings conference call, analysts also expressed concern about growing competition.
Also reporting fourth-quarter earnings early Tuesday was Baozun (BZUN) , which beat consensus estimates. Baozun stock soared 31.1% to finish the regular session at 48.21. Baozun, an e-commerce company that helps major brands navigate China’s growing online market opportunity, reported adjusted earnings of 42 cents per share, up 133%, on revenue of $240.6 million, up 31%, both above estimates, as was revenue guidance.
More quarterly earning reports are coming. China internet company Momo (MOMO) reports fourth-quarter earnings before the market open Wednesday, as does Autohome (ATHM). Shares of Momo climbed 2.1% to 33.97. Autohome gained 1.3% to 80.95.
The consensus on Momo, which provides a mobile-based social networking platform, is for the company to report fourth-quarter revenue of $380 million, with adjusted earnings of 46 cents per share. The consensus on Autohome, which provides an online car-buying service, is for revenue growth of 7% to $268.4 million, and adjusted earnings of 69 cents.
Shares of China’s two largest e-commerce companies, JD.com (JD) and Alibaba (BABA), were also up. JD.com shares ticked up 0.4% to 43.14. Alibaba gained 3.2% to near 187.37.
JD.com, on Friday, reported weaker-than-expected earnings for its fiscal fourth quarter. JD.com’s revenue rose 34% to $16.9 billion, beating the consensus estimate of $16.6 billion, but adjusted earnings fell short of views.
Two weeks ago JD.com raised $2.5 billion by selling a stake in its logistics unit in order to expand its supply-chain network with leading-edge technology.
