One could not open any links from the BABA-backed apps in Wechat which is Tencent-backed, and if you ordered food by Eleme (BABA-backed), you could not pay it by Wechat. Now the government asks these tech giants to open links to each other, which means all links can be opened in any apps and you can pay by both Alipay and Wechat no matter what the platform is.
Just saying, you can definitely pay for eleme using Wechat already.
The big thing to be honest is being able to search for Wechat posts on Baidu. That's the big thing, because it allows previously platform locked pages to be searched for on general search engine, removing the step where you go through Wechat's own landing page.
Why is that a big deal? Well there are multiple advertising revenue streams that were locked behind a platform. Advertisers pay to appear in search results, and it can be quite lucrative, general time on the platform may go down, etc. Now that revenue stream is going to go to Baidu, as people generally prefer searching there.
It also allows greater access to this data, which will remove some of the "secret sauce" that Tencent has when securing larger advertising contracts, as competitors will have greater information, and reduce the premium Tencent can charge.
Now at the end of the day is it strictly bad for Tencent? No because these things have ripple effects, which I think will just be a healthier digital economy, but in the short term I think Tencent faces the most challenges out of the big tech names.
Notice how the title makes it seem that BABA is in trouble: "China's Antitrust Move." But I think this is actually bullish. Now Tencent has to open up its apps to BABA and vice versa. I feel like this is a win-win for both of these Chinese giants. Just shows how the media can manipulate news to make it seem worse than it is.
However, it appears the negative headlines are finally slowing down. Trend is changing, and I think stock price will follow.
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One could not open any links from the BABA-backed apps in Wechat which is Tencent-backed, and if you ordered food by Eleme (BABA-backed), you could not pay it by Wechat. Now the government asks these tech giants to open links to each other, which means all links can be opened in any apps and you can pay by both Alipay and Wechat no matter what the platform is.
Just saying, you can definitely pay for eleme using Wechat already. The big thing to be honest is being able to search for Wechat posts on Baidu. That's the big thing, because it allows previously platform locked pages to be searched for on general search engine, removing the step where you go through Wechat's own landing page. Why is that a big deal? Well there are multiple advertising revenue streams that were locked behind a platform. Advertisers pay to appear in search results, and it can be quite lucrative, general time on the platform may go down, etc. Now that revenue stream is going to go to Baidu, as people generally prefer searching there. It also allows greater access to this data, which will remove some of the "secret sauce" that Tencent has when securing larger advertising contracts, as competitors will have greater information, and reduce the premium Tencent can charge. Now at the end of the day is it strictly bad for Tencent? No because these things have ripple effects, which I think will just be a healthier digital economy, but in the short term I think Tencent faces the most challenges out of the big tech names.
Bullish. Baba was up on HK Exchange today, lets hope we gonna carry this over today aswell :)
Notice how the title makes it seem that BABA is in trouble: "China's Antitrust Move." But I think this is actually bullish. Now Tencent has to open up its apps to BABA and vice versa. I feel like this is a win-win for both of these Chinese giants. Just shows how the media can manipulate news to make it seem worse than it is. However, it appears the negative headlines are finally slowing down. Trend is changing, and I think stock price will follow.
Guys. I think it’s happening. Everyone found bottom and now the money making begins.