To The Moon

Technology stocks advanced across the board, driving the Hang Seng Tech Index up by nearly 4%. As of writing, BIDU-SW (09888) surged 8.75% to HK$143; BABA-W (09988) rose 3.29% to HK$147.5; KUAISHOU-W (01024) increased 3.21% to HK$66; TENCENT (00700) climbed 3.17% to HK$618. CITIC Securities released a research report stating that in 2025, the internet sector navigated a volatile upward trend amidst recurring external disruptions, with the primary upward momentum stemming from AI-driven value re-rating and improved liquidity. Looking ahead to 2026, AI remains the core catalyst for the sector's valuation uptrend, with key focuses being: narrative reinforcement from model iterations, application deployments, and performance delivery; and the potential for further re-rating of internet companies' AI business value following valuation benchmarks set by model companies going public. For companies with lower short-term AI relevance, earnings visibility and valuation attractiveness will be the core selection criteria. Guosen Securities published a report noting that for 2026, close attention should be paid to the progress of overseas expansion by internet giants. Under the AI development trend, domestic cloud providers and game developers face significant growth opportunities from international expansion, complemented by upgrades in the high-quality domestic supply chain; overseas expansion by e-commerce platforms also serves as a crucial growth avenue to supplement weak domestic demand. Furthermore, the food delivery competition is expected to enter a phase of marginal contraction in investment by 2026, which will be a significant variable affecting the cash flow and profits of the three major platforms.