CITIC Securities: It is recommended to pay attention to the performance trends of major US internet companies and investment opportunities after the "narrative reversal".

CITIC Securities stated that in recent days, the performance of US internet companies has gradually been revealed. Although overall performance generally exceeded market consensus or company guidance, some companies' stock prices are clearly under pressure due to factors such as liquidity and AI narrative, deviating significantly from the performance trends. We believe that the current market's pessimistic expectations for internet companies have been excessively magnified. The fundamentals of companies remain relatively strong, and the impact of AI on the internet, such as e-commerce agents, gaming engines, etc., is still in its early stages. In these areas, internet companies themselves can likely benefit from AI through their network effects, introduction of AI traffic, and optimization of code costs. Therefore, we believe that after the current wave of selling off, as the market returns to a relatively rational fundamental pricing logic, the valuation cost-effectiveness of internet companies continues to be highlighted. We recommend keeping an eye on the performance trends of major US internet companies and investment opportunities after a "narrative reversal."