Analysts at Goldman Sachs have picked three Chinese cloud stocks set for strong growth, with potential upsides to their share prices of more than 50%.
China's online population surged during the pandemic and by the end of last year it had nearly 1 billion web users. Internet companies reaped the benefits; Douyin, the Chinese version of short-video sharing app TikTok, for instance, hit 600 million daily active users.
But these web giants — TikTok-owner ByteDance, Alibaba, Microsoft and the like — rely on data centers to host their vast cloud computing operations, and Goldman has identified three stocks in the space with big potential.
Goldman's buy-rated picks, all due to report earnings in the coming weeks, are: