Goldman Sachs outlined three China internet names it views as preferred exposures heading into the second half of 2026, pointing to signs of stabilising consumption and the prospect of earnings recovery for certain companies.
The bank presented a ranked view across sub-sectors rather than a single, uniform stance. At the top of its preference list was the cloud and data infrastructure segment, followed by games and entertainment, while eCommerce and mobility landed in third place - though the firm noted there remain selective opportunities within that latter grouping.
Alibaba
Goldman Sachs retained Alibaba on its Asia-Pacific Conviction list and identified the company as its leading pick within China’s cloud and data centre segment for the second half of 2026. The bank said Alibaba’s earnings-per-share downgrade cycle appears to be approaching a bottom, a development Goldman described as a potential trigger for support to the share price and an inflection point over the remainder of the year.
JD.com
JD.com was introduced by Goldman Sachs as a new idea within its China internet coverage. The bank flagged expectations for a recovery in both JD.com’s top-line growth and profitability in the second half of 2026. Even as Goldman moved the eCommerce and mobility sub-sector down to third in its overall preference ranking, the bank singled out JD.com as a name worth highlighting in spite of a softer macroeconomic and consumption backdrop.
NetEase
Goldman Sachs added NetEase as a new idea within its games and entertainment coverage, a move that elevated the sub-sector to second in the bank’s preference ordering. The change reflected what Goldman described as soft but stabilising macro and consumption trends quarter-to-date. The bank cited NetEase alongside Tencent as preferred ways to gain exposure to a possible recovery in entertainment spending.
Market ticks included in the briefing showed modest intraday moves for the names noted: NTES +0.09%, JD +0.42% and BABA -0.24%.
This positioning reflects a differentiated sector view by Goldman Sachs, with emphasis on cloud and data infrastructure, selective exposure to gaming and entertainment, and a more cautious stance on broader eCommerce and mobility despite company-specific opportunities.
Key takeaways and implications are summarized below.