Abstract
The COVID-19 outbreak left the world an island shrouded in repression, causing great losses to the world economy and blowing numerous investors in the financial market. However, at the same time, emerging online industries also bring them new investment opportunities. This article would analyze the operation condition and forecast the growth potential of three enterprises, Zoom Video Inc., Shanghai Yaoji Technology Co., Ltd, and 51Talk, which specialize in Online Entertainment, Online Education, and Office Online. Through analyzing operating profit growth rate and net profit growth rate of Zoom Video Inc., classifying Shanghai Yaoji Technology Co., Ltd in terms of ROIC and increase rate of main business revenue, and predicting stock returns of 51 talk using Baidu Index, short-term and long-term investment strategies can be provided. With the above evidence, it is proposed that Shanghai Yaoji Technology Co., Ltd is worthy to invest in the short run, while Zoom Video Inc. and 51Talk have larger profitability in the long term. Besides, the future of those online industries is predicted.
Highlights
For several times at the meeting of the World Health Organization (WHO), the director-general Dr TedrosThe global outbreak has forced thousands of people to stay at home
This paper aims at analyzing the financial data and stock’s value of the leading companies in three online industries: Online Entertainment, Online Education, and Office Online discussing those companies’ performances and industries’ growth potential and providing investors with short-term and long-term investment suggestions
Based on the research result of “Influence of Investors’ Attention on Stock Returns —Research based on Baidu Index”: MAI is in direct proportion to stock returns in the same period, and the returns of stocks
Summary
The global outbreak has forced thousands of people to stay at home At this moment, online industries that rely on the Internet have become a key beneficiary of the Distributed under creative commons license 4.0. The overall performance of the online game industry represented by Shanghai Yaoji Technology Co., Ltd is quite outstanding. Yaoji said that during the reporting period, the overall number of active users and the flow of the company’s game business sector grew significantly. Yaoji forecast net profit attributable to shareholders in the first quarter of 2020 to be between 132 million yuan and 174 million yuan with a year-onyear growth rate of 150% to 230 percent[5]. In the first quarter of 2020, 51talk generated 487.1 million yuan ($68.8 million) in revenue, achieving 52.2 percent increase year on year. The number of active students in the first quarter was about 286,600, increasing 11.4 percent from 257,200 in the previous quarter[6]
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