BAT Stocks

BAT stocks refer to the stocks of the three largest Chinese technology firms - Baidu Inc., Alibaba Group Holding Ltd., and Tencent Holdings Ltd. These stocks tend to provide the best investment opportunities for traders. Thus, they prefer them to other financial instruments.

BAT stocks are seen as the best competitors to the FANGs or FAANGs stocks of the United States, including Facebook, Apple, Amazon, Netflix, and Google. However, Chinese companies are more appealing to investors because their domestic market can grow.

Key Takeaways                                                               

• BAT stocks belong to the three largest Chinese technology firms, including Baidu Inc., Alibaba Group Holding Ltd., and Tencent Holdings Ltd.
• BAT stocks are viewed as the best challengers to the FANGs or FAANGs stocks (Facebook, Apple, Amazon, Netflix, and Google) of the United States and provide the best investment potential.
• Baidu has risen to become China's top search engine. Alibaba has become one of the world's largest merchants and e-commerce companies. Tencent has grown to become China's most valuable publicly traded firm with a high valuation mark.

Chinese BAT stocks stand for Baidu Inc. (BIDU), Alibaba Group Holding Ltd. (BABA), and Tencent Holdings Ltd. (TCEHY). BAT stocks have a long-term growth potential due to the stronger growth of these technology companies.

#1 - Baidu

Baidu, co-founded in 2000 by Robin Li and Eric Xu, has grown to become China's top search engine. It has no big competitors after Google's complete pullout from China in 2010. Recently, the company gained control of roughly 72% of the domestic market and launched an informative platform similar to Wikipedia with stricter editing regulations. It, like Google, provides social media, GPS, and audio services.

Baidu app, Baidu Search, Haokan, Baidu Post Bar, Baidu Knows, Baidu Encyclopedia, and Baidu IME (Input Method Editor) are Baidu's popular offerings. The company’s business is divided into two segments - Baidu Core and iQIYI. The former provides keyword-based marketing services, while the latter offers online advertising.

Baidu Brain is currently one of its most advanced features, allowing it to research AI and self-driving cars. Baidu has been listed on the NASDAQ National Market, now known as the NASDAQ Global Market, since August 2005. It was dual-listed on the Stock Exchange of Hong Kong Ltd. (SEHK) in March 2021.

#2 - Alibaba

Alibaba Group Holding Ltd., founded in 1999 by former Chinese English teacher Jack Ma, specializes in retail, internet technology, e-commerce, cloud computing, digital media, and entertainment. Taobao and Tmall are two online portals used by this Chinese multinational technology corporation. The former facilitates consumer-to-consumer commerce, whereas the latter provides business-to-consumer transactions. In addition, through Alipay, a subsidiary of Ant Financial, Alibaba offers a reliable payment solution.

Alibaba has grown to be one of the top retailers and e-commerce enterprises globally. It began with 18 people led by the founder himself, and it now ensures long-term viability and efficacy in satisfying societal needs.

According to its official website, the company's medium-term goals for the fiscal year 2024 are to continue increasing its globalization efforts and serve over one billion people through its Chinese consumer business. Furthermore, its goal for the fiscal year 2036 is to serve two billion consumers and facilitate 10 million enterprises, creating 100 million jobs.

Alibaba's initial public offering (IPO) was listed on the New York Stock Exchange in September 2014, raising $25 billion and boosting the company's value to $231 billion. As a result, the company grew to become the world's largest IPO. Alibaba also holds ownership rights to the South China Morning Post.

#3 - Tencent

Tencent, a multinational corporation founded in 1998, aims to provide a wide range of products and services, including social media, internet services, online music, e-commerce, smartphones, payment systems, multiplayer online games, and online advertising. Pony Ma, one of Tencent's co-founders, is the company's CEO.

The company provides excellent communications and social media platforms through Weixin and QQ. These allow users to communicate with one another, access digital material, and find daily life services in only a few clicks. In addition, Tencent offers value-added services under the label "one-stop online lifestyle services."

QQ Instant Messenger, QQ.com, WeChat, SoSo, Tenpay, Ozone, PaiPai, QQ Games, and 3g.QQ.com are only a few of Tencent's online platforms in China. These services work together to enable consumers to communicate, get entertained, shop online, and get information through various interactive platforms.

In 2013, Tencent had a market valuation of $101 billion, and in 2018, it had a market valuation of $500 billion, making it the first Asian technology company to achieve so. Tencent became a major competitor of Baidu, Alibaba, and NetEase after being listed on the Hong Kong Stock Exchange (SEHK) in June 2004. As a result, the company became China's most valued publicly traded company with a high valuation mark.