China's biggest Internet stocks are on fire in 2017. And a quick look at the numbers shows why.
A report released this week showed that China's Internet user base grew to 751.16 million in June, up 6% from a year earlier. That's still just 54.3% of the world's most populous country, compared to 74.6% in the United States, which means there's still plenty of untapped upside.
One beneficiary of that growth is Tencent Holdings Ltd. (OTCMKTS: TCTZF). The stock is up nearly 70% in 2017 and has a market cap closing in on $400 billion. Its mobile game "Honor of Kings" has more than 50 million daily active users, and in the first quarter of 2017 was the most downloaded app in the world on Apple Inc.'s (Nasdaq: AAPL) iOS App Store.
Not to be outdone, Alibaba Group Holding Ltd. (NYSE: BABA) is up more than 80% in 2017, and last month became the first Asian company to pass the $400 billion valuation mark. Frequently called the "Amazon of China," the e-commerce giant's Tmall platform held a 56.6% share of China's online retail market in 2016, more than double its top competitor.
So what's the top play for your portfolio? Money Morning Technical Trading Specialist D.R. Barton, Jr., joins CNBC World to discuss the future for Tencent and Alibaba and which one he would buy.
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