Goldman Sachs: 2026 a Turning Point for Chinese Internet Giants; Pinduoduo a Top Pick. Goldman Sachs released a report stating that 2026 will be a crucial strategic turning point for Chinese internet giants. This is due to increased investment in AI-driven consumer (To-C) sectors, intensifying competition for AI super-entry points, and a more coordinated effort among giants to defend their core leading positions. Goldman Sachs expects some large and small-cap stocks to generate excess returns in 2026 and recommends three investment themes: earnings per share realization/growth, narrative shifts driven by AI and globalization, and shareholder returns. The bank also updated its quarterly sub-sector preference rankings, placing cloud computing and data centers, gaming and entertainment, and AI models in the top three. Among the giants, Pinduoduo (PDD.O) is a top pick due to its valuation discount, strong cost-effectiveness, and robust growth in its platform.
