Reciprocal tariffs will hit Asia Pacific's online sellers shipping goods from Asia to the US, including PDD's Temu platform, the hardest among internet companies, Jefferies said in a research note.
An expected end to de minimis trade will likely hurt Temu's low prices compared to Amazon and dampen PDD's investor perception, the equity research firm said.
However, Jefferies views entertainment like games and music from companies such as Tencent Holdings (HKG:0700) and NetEase (HKG:9999) as safer from these tariff concerns.
Other internet businesses show dynamic trends, with areas like travel seeing volume growth and leading local player Meituan (HKG:3690) benefiting from weak online penetration.
Investors are also tracking cloud updates, like advanced chip supply for companies like Alibaba Group Holding (HKG:9988), as well as consumer sentiment and SME performance in general, Jefferies said.
The market is also focusing on holidays and big online sales events in the next quarters, the research firm said.
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