China tech giants had their worst quarterly growth on record, thanks to Beijing's zero-Covid policy
China's internet giants enjoyed a boom during the pandemic as people turned to online services such as shopping and gaming amid lockdowns. That has made year-on-year comparisons harder. Now, the Chinese economy is facing a number of headwinds this year that has made the macroeconomic environment even tougher.
With growth rates falling more sharply than in previous years, investors are cautious on their outlook. "The recent revenue and earnings dip hitting these big tech names reflects zero COVID concerns short-term, but also has many long-term investors, including myself, revising our estimates of the long-term growth prospects of these names."