- Mizuho analyst James Lee recently met with investors and discussed U.S. and China internet coverage.
- With concerns about U.S. consumer demand and economic outlook, Lee senses that sentiment on China's Internet is improving.
- Unlike the western world, China did not implement monetary or fiscal support to drive economic growth during the pandemic. Lee believes the next catalyst is July's National Economic Council, which could outline detailed stimulus plans.
- The recent sell-off created a meaningful dislocation between the fundamentals and sentiment on the U.S. side.
- The most discussed name was Uber Technologies, Inc UBER due to concerns about driver supply and the risk of margins from incentives.
- The second most discussed name was Meta Platforms, Inc FB, and the company has levers to reduce OPEX growth and produce OPI upside.
- Lee came away incrementally positive on UBER, FB, Baidu, Inc BIDU, and JD.Com, Inc JD.
- Price Action: UBER shares traded lower by 8.14% at $21.84 on the last check Tuesday.
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