Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Equity Bottom-Up

We recently reduced our numbers for <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179">BIDU</a> on concerns about the impact of a recent issue with a military hospital on advertising. New regulations were imposed and we reduced our numbers to take a modest revenue decline from hospitals into account. However, it is now clear the impact has been more severe than expected. BIDU cut its guidance this week and held an investor call on Tuesday morning (Asia time). The stock was pummeled in the after-market, down over 5% before rallying somewhat in…

We recently reduced our numbers for BIDU on concerns about the impact of a recent issue with a military hospital on advertising. New regulations were imposed and we reduced our numbers to take a modest revenue decline from hospitals into account. However, it is now clear the impact has been more severe than expected. BIDU cut its guidance this week and held an investor call on Tuesday morning (Asia time). The stock was pummeled in the after-market, down over 5% before rallying somewhat in…

BIDU: Advertising Headwinds Mount. Guidance Cut.

We have had (and continue to have) a preference for <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26">Tencent Holdings Ltd</a> (Tencent) over <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179">Baidu Inc Spon Adr</a> (BIDU). The main reason has been the faster path to monetization but BIDU has faced a number of additional issues recently which have led to a modest reduction in forecasts. We remain at Neutral on the stock.New regulations on pay-for-performance search add to headwinds for revenue growth whilst structural changes for loss-making businesses increase the near-term tax burden. The use of annual contracts for key accounts may minimize regulatory change this year but make renewals at higher rates more difficult from FY17 onwards.We have made a series of changes to our forecasts following 1Q16 results, new regulations following the hospital issue and after more detail released on non-core businesses. Our target price has been reduced by around 3.5% to $188.

We have had (and continue to have) a preference for Tencent Holdings Ltd (Tencent) over Baidu Inc Spon Adr (BIDU). The main reason has been the faster path to monetization but BIDU has faced a number of additional issues recently which have led to a modest reduction in forecasts. We remain at Neutral on the stock.New regulations on pay-for-performance search add to headwinds for revenue growth whilst structural changes for loss-making businesses increase the near-term tax burden. The use of annual contracts for key accounts may minimize regulatory change this year but make renewals at higher rates more difficult from FY17 onwards.We have made a series of changes to our forecasts following 1Q16 results, new regulations following the hospital issue and after more detail released on non-core businesses. Our target price has been reduced by around 3.5% to $188.

Baidu Faces Headwinds from Regulatory Issues and Taxation

Information Technology Consultant

Ishita Jain

Thematic (Sector/Industry)

A few months ago, I wrote a piece titled "Investing in the Internet of Things" and I made a case for the bright future of IoT and its myriad applications. At that time, I had noted that one of the top users of IoT was the agriculture sector and today it continues to surge ahead in its use of smart devices. This article serves to explore the innovative ways in which the agriculture industry is exploiting IoT and also serves to bolster the case for investing in IoT.

A few months ago, I wrote a piece titled "Investing in the Internet of Things" and I made a case for the bright future of IoT and its myriad applications. At that time, I had noted that one of the top users of IoT was the agriculture sector and today it continues to surge ahead in its use of smart devices. This article serves to explore the innovative ways in which the agriculture industry is exploiting IoT and also serves to bolster the case for investing in IoT.

Strong results from <a href="https://www.smartkarma.com/entities/27" target="_blank" data-smartkarma-citation="entities:27">China Mobile Ltd</a> (CM) in particular are supportive of the Chinese internet stocks.  Our view has been that just looking at the macro economic numbers gives a false picture of the internet. Instead investors should be looking upstream at the telecom operators. And what we see there is supportive.We look at 4G subscriber net additions and mobile internet traffic growth to provide a view on what consumers/ internet users are doing. People who buy a 4G handset intend to use it…

Strong results from China Mobile Ltd (CM) in particular are supportive of the Chinese internet stocks.  Our view has been that just looking at the macro economic numbers gives a false picture of the internet. Instead investors should be looking upstream at the telecom operators. And what we see there is supportive.We look at 4G subscriber net additions and mobile internet traffic growth to provide a view on what consumers/ internet users are doing. People who buy a 4G handset intend to use it…

China Internet: Sector Inputs Supportive for Tencent and NetEase.

Thematic Investing in Tech and Media, CM Research

Cyrus Mewawalla

Thematic Investing in Tech and Media

Thematic TMT investing

CM Research

CM Research is an independent research house based in London, England. We provide global thematic research in the Technology, Media and Telecoms (TMT) sectors. 

Our focus is on disruptive technologies: how will they unfold; which industries will be impacted; and who will be the ultimate winners and losers. 

Our aim is to help investors predict share prices and corporate executives stay one step ahead of the technology trends that are shaping their industry. 

We research technology investment themes in detail and then feed the results into a scorecard system to quantify the impact of several conflicting themes on individual stocks. 

Recent themes covered include internet TV, the Internet of Things, Big Data, Mobile payments, crowdfunding, artificial intelligence, the cloud, software defined networking and Generation Hashtag.

We cover the top 500 global TMT stocks by market capitalisation and several technology start-ups and pre-IPO companies too. 

In 2015, CM Research analysts outperformed the Bloomberg Benchmark Analyst Index - which measures how good analysts are at predicting stock prices - by 7.1%.

<ul><li>TV broadcasters still control 93% of subscriptions and advertising revenues that pass through the TV set. The remaining 7% of revenues relates to video streaming services like Netflix.</li><li>But Internet TV will move faster and be more disruptive than analysts predict.</li><li>The inflection point will be the arrival of a “pure” internet TV in which all TV viewing is accessed by a single operating system, probably remote controlled by a smartphone or tablet.</li><li>Film and TV studios will see content prices bid up as technology companies – like Apple, Netflix and Alibaba – compete to acquire content rights.</li><li>TV broadcasters will report profit warnings as they lose control of payTV subscription revenues and TV advertising revenues.</li></ul>

TV broadcasters still control 93% of subscriptions and advertising revenues that pass through the TV set. The remaining 7% of revenues relates to video streaming services like Netflix.But Internet TV will move faster and be more disruptive than analysts predict.The inflection point will be the arrival of a “pure” internet TV in which all TV viewing is accessed by a single operating system, probably remote controlled by a smartphone or tablet.Film and TV studios will see content prices bid up as technology companies – like Apple, Netflix and Alibaba – compete to acquire content rights.TV broadcasters will report profit warnings as they lose control of payTV subscription revenues and TV advertising revenues.

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

BIDU: Advertising Headwinds Mount. Guidance Cut.

We recently reduced our numbers for BIDU on concerns about the impact of a recent issue with a military hospital on advertising. New regulations...

New Street Research

Baidu Faces Headwinds from Regulatory Issues and Taxation

We have had (and continue to have) a preference for Tencent Holdings Ltd (Tencent) over Baidu Inc Spon Adr (BIDU). The main reason has been the...

New Street Research

Internet of Things in Agriculture

A few months ago, I wrote a piece titled "Investing in the Internet of Things" and I made a case for the bright future of IoT and its myriad...

Ishita Jain

China Internet: Sector Inputs Supportive for Tencent and NetEase.

Strong results from China Mobile Ltd (CM) in particular are supportive of the Chinese internet stocks. Our view has been that just looking at the...

New Street Research

Internet TV as an Investment Theme

TV broadcasters still control 93% of subscriptions and advertising revenues that pass through the TV set. The remaining 7% of revenues relates to...

CM Research

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