u/RoundDefinition7957 ·
Reddit — r/ValueInvesting
· September 01, 2026 at 14:04
· ⬆ 16 pts
· 💬 104 comments
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Summary
Post argues Chinese AI/tech giants (BABA, TCEHY, BIDU) are technically comparable to Mag7, diversified across AI/cloud/e-commerce/gaming, and should trade at a smaller discount.
Author views the stocks as “deep value” rather than a permanent value trap, blaming US legal pressure and political risk for the undervaluation.
Quality assessment: Speculation and narrative, not rigorous DD — no financials, valuation multiples, or comparative analysis are provided.
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Think about BABA, Tencent, BIDU etc:
\-they are technically as good as US Mag7
\-their asset diversification (AI, Cloud, e-commerce, gaming ..) is very similar, sometimes better
\-yes there is the legal saber rattling from the US Govt, but their models are likely to be what is affordable to the rest of the world which does not have the capital to create competitors
\-these companies have the backing of the Chinese government (which does not speak frequently, but when it does their policy-speak is loud)
\-they have an entrenched market of both consumers and developers (the latter being very important to compete with NVDA)
The stocks behave like a *value trap* but fundamentally look like *deep value*
BABA is grouped with Tencent/BIDU as an undervalued Chinese AI/cloud/e-commerce play. Market discounts political risk; if valuation gap narrows, upside is large. Long BABA as a deep-value China tech recovery bet. CCP intervention, audit trust issues, poor shareholder returns, US delisting risk.
Tencent cited as diversified AI, cloud, gaming, and social asset similar to Mag7. Entrenched consumer/developer ecosystem and government backing may protect long-term cash flows. Long TCEHY for eventual re-rating as the China tech discount eases. Constant regulatory intervention, CCP takeover/nationalization, weak shareholder return culture.
BIDU is grouped as technically as good as US Mag7 in AI. Affordable AI models for non-US markets could be BIDU's growth angle. Long BIDU only as a higher-risk China AI speculation. Top commenters call BIDU “crap”; competitive loss in AI, governance/accounting risks.
This Reddit post, published September 01, 2026,
features u/RoundDefinition7957
discussing BABA, TCEHY, BIDU.
3 trade ideas extracted by AI with direction and confidence scoring.