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Cailianshe News, August 16 (Editor: Hu Jiarong)As some Internet companies announced good second-quarter performance reports or future outlooks last night, market confidence was significantly boosted, especially the share prices of JD.com-SW (09618.HK) and Alibaba-SW (09988.HK), which showed a warming trend.

This performance also led to the strengthening of the entire technology index. As of midday close, the index rose 2.14% to close at 3456.73 points. During the same period, the Hang Seng Index and the China Enterprises Index rose 1.68% and 1.90% respectively, closing at 17396.26 points and 6149.69 points.

Note: Performance of the Technology Index

JD.com Group's revenue in the second quarter of 2024 reached 291.4 billion yuan, achieving a year-on-year growth of 1.2%. More strikingly, its Non-GAAP (non-GAAP) net profit reached 14.5 billion yuan, a significant year-on-year increase of 69.0%.

Institutions such as Citi and Jefferies have given positive comments on JD.com's performance and expect that if the old-for-new policy is implemented faster than expected, it will further have a positive impact on JD.com's stock price.

Alibaba achieved revenue of 243.236 billion yuan in the first quarter of fiscal year 2025 (ending June 30, 2024), a year-on-year increase of 4%. Although net profit declined year-on-year, the company released positive signals in the earnings conference call, expecting to complete the conversion of the main listing in Hong Kong by the end of August, and looking forward to most businesses to achieve break-even in the next 1-2 years.

The continuous repurchase of Internet stocks continues to attract market attention

In addition to boosting performance, the share repurchase activities of Internet companies have also become the focus of market attention. Alibaba has invested US$5.8 billion to repurchase 613 million common shares in the first half of 2024, and its outstanding shares have decreased by 445 million shares during the quarter, showing the company's recognition of its own value and confidence in the future.

According to statistics, Alibaba has invested a total of US$12.5 billion in share repurchases in fiscal year 2024, ranking among the top among Chinese stocks listed in the United States.

Tencent Holdings' repurchase action is also eye-catching. In the six months ending June 30, 2024, the company repurchased and cancelled more than 154 million shares at a total cost of approximately HK$52.3 billion, demonstrating its determination to enhance shareholder value. The company's CEO Ma Huateng reiterated that the company will carry out a share repurchase plan of more than HK$100 billion in 2024, while increasing dividend distribution and continuing to invest in AI technology, platform enhancement and the production of high-value content.

Internet stocks' share repurchase strategies usually have a positive impact on stock prices. When a company repurchases shares, it sends a signal to the market that the company's management believes that its stock is undervalued, which can enhance investor confidence and may drive up stock prices.