Key insights
- Goldman Sachs identifies three top China internet stocks for H2 2026: Alibaba (cloud/data infrastructure), JD.com (eCommerce/mobility), and NetEase (games/entertainment). The firm anticipates stabilizing consumption and an earnings recovery, with cloud and data infrastructure as preferred sub-sectors. While direct US market impact is limited, these insights can influence global tech sentiment and investor allocation, potentially affecting US-listed Chinese tech ADRs and broader tech sector valuations.
Investing.com -- Goldman Sachs highlighted three stocks in China’s internet sector as its preferred picks heading into the second half of 2026 amid stabilizing consumption trends and expectations for earnings recovery across select names.
The Wall Street bank maintained a differentiated view across sub-sectors, with cloud and data infrastructure leading its preference list, followed by games and entertainment, while eCommerce and mobility fell to third place despite pockets of opportunity.
Alibaba
Goldman Sachs kept Alibaba on its Asia-Pacific Conviction list, flagging the stock as its top pick within China’s cloud and data centre sub-sector heading into the second half of 2026. The bank said it saw Alibaba’s earnings-per-share downgrade cycle as nearing a bottom, a dynamic it described as a potential catalyst for share price support and inflection over the remainder of the year.
JD.com
Goldman Sachs introduced JD.com as a new idea within its China internet coverage, flagging expected recovery in both top-line growth and profitability in the second half of 2026. The bank moved the eCommerce and mobility sub-sector down to third in its sector preference ranking but singled out JD as a name worth highlighting despite the softer macro and consumption backdrop.
NetEase
Goldman Sachs added NetEase as a new idea within its games and entertainment coverage, lifting the sub-sector to second in its preference ranking. The move reflected soft but stabilising macro and consumption trends quarter-to-date, with the bank citing NetEase alongside Tencent as its preferred exposure to a potential entertainment spending recovery.
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