Introduction:In recent years, Internet companies often see news of layoffs, salary cuts and business adjustments. In order to reduce costs and increase efficiency, major enterprises are constantly looking for new ways.Thus it can be seen that under the special economic environment of the gradual disappearance of the demographic dividend and the superposition of three periods, the era of Internet enterprises lying down to make money has passed.

As the five giants of the Internet in China, JD.com, Tencent, BABA, NetEase, Inc and Baidu, Inc. recently released their financial results for the first quarter of 2019. Among them, the growth rate of Tencent and BABA slowed down, Baidu, Inc. lost money for the first time, while JD.com substantially reversed losses, and NetEase, Inc's net profit rose.

Tencent earns 300 million dollars a day.

BABA leads the global technology giant in revenue for seven consecutive seasons.

In the first quarter of 2019, Tencent's revenue was 85.47 billion yuan (RMB, the same below), with a net profit of 27.21 billion yuan, equivalent to nearly 950 million yuan per day, and a net profit of nearly 300 million yuan, making him the "gold-earning king" in BATJW.

The biggest highlight of Tencent's first quarterly report was that "Financial Technology and Enterprise Services" was disclosed separately in the financial report for the first time, with revenue of 21.789 billion yuan, an increase of 44 percent over the same period last year, accounting for 25 percent of the total business revenue and exceeding the proportion of online advertising revenue.

Although Tencent game is no longer absolutely dominant, it is different from NetEase, Inc's "Onmyoji" two years ago, and now the popular style game is in an awkward position. After the season's popular game "exciting Battlefield" was revised and upgraded to "Game for Peace", only 72 hours after its launch, "Game for Peace" attracted 95.5 million yuan, and its profitability has already caught up with "Arena of Valor", setting a record for the fastest money-absorbing tactical mobile games on the iOS platform.

BABA, who released the results on the same day, had a revenue of 93.498 billion yuan and a net profit of 25.83 billion yuan, equivalent to nearly 1 billion in daily revenue and nearly 287 million in net profit.

It is worth noting that compared with Tencent's 16% revenue growth rate, Amazon.Com Inc's 26% growth rate, Amazon.Com Inc's 17% growth rate, and Apple Inc's 5% negative growth rate,BABA's revenue has grown by 50.97% and has led the world's technology giants for seven consecutive quarters. If BABA can maintain this growth rate, BABA's revenue in 2020 is likely to be close to or even exceed 550 billion, much higher than the 509 billion expected by the market.

Baidu, Inc. is now listed on the market since the first loss in a single quarter, where is the way?

Baidu, Inc., whose market capitalization was at the same starting line as Tencent ten years ago, has now been left far behind and has been substantially overtaken by BABA, who comes from behind. Among the three giants of BAT in the past, Baidu, Inc. has obviously lagged behind, and the market capitalization of 308.7 billion yuan is especially small in front of Tencent 2.9716 trillion yuan and BABA 3.0031 trillion yuan.

As Robin Li said in the internal letter of the financial report:

"in 2019, the world is undergoing rapid changes, the industrial value chain is constantly under impact, the new and old momentum is facing the transformation, the external environment is uncertain, and the competition is intensified, causing the entire science and technology industry to enter a period of shock. Baidu, Inc. is no exception."

Baidu, Inc. 's first-quarter financial report showed that revenue of 24.1 billion yuan was lower than market expectations and a net loss of 327 million yuan, the first quarterly loss since Baidu, Inc. went public in 2005.

In terms of business structure, the operating profit of Baidu, Inc. 's pillar industry (search services) was 1.1 billion yuan, down 81 per cent from the same period last year. While the growth rate of the company's revenue side slowed significantly, Baidu, Inc. 's e-wallet also sent out red envelopes of 1.9 billion yuan during the Spring Festival. Financial data show that Baidu, Inc. 's sales and other expenses have nearly doubled this year compared with the same period last year, mainly due to an increase in investment in channels and promotional marketing, including marketing activities around the Chinese Lunar New year, as well as an increase in personnel-related spending.

The damage to core business and the expansion of marketing expenditure, as well as the large investment in emerging businesses such as artificial intelligence and the long realization cycle of the industry, have resulted in Baidu, Inc. losing money for the first time in 14 years.

At the same time as the loss, the resignation of Xiang Hailong, senior vice president of Baidu, Inc. and president of search company. In recent years, Baidu, Inc. is in the throes of transition, and the personnel changes frequently.

Affected by many unfavorable factors and the recent bad environment.Baidu, Inc. plunged 16.52% on May 17, the share price hit a three-and-a-half-year low, the market value lost about 60 billion yuan, and the total market value was once surpassed by Meituan.Baidu, Inc. 's board of directors also approved the launch of a new share buyback plan, which will buy back no more than US $1 billion of Baidu, Inc. shares by July 1, 2020.

JD.com NetEase, Inc's performance counterattack

After the trough of 2018, NetEase, Inc fought a turnaround in the first quarter of this year. Judging from the net profit for six consecutive quarters, NetEase, Inc's overall profit is in a state of rapid recovery. NetEase, Inc's net profit in the first quarter was 2.382 billion yuan, an increase of 216.8% over the same period last year, far higher than the market expectation of 1.512 billion yuan.

The main reason for the big increase in profits is that NetEase, Inc focuses on the main business adjustment and proper cost control, the decline of sales expenses, and NetEase, Inc insists on increasing investment in R & D, and the rate of R & D expenses is rising year by year.

Since the second half of 2018, JD.com has been shrouded in various negative rumors of founder tidbits, layoffs and salary cuts, executive turnover and structural adjustment. Under the pressure of public opinion, the company has come forward to clarify several times.

Against this background, JD.com 's net profit loss in the fourth quarter of last year attracted market attention, with the year-on-year growth rate falling to-1536.47 per cent.

In the first quarter of this year, JD.com reported gratifying results, with total revenue of 121.08 billion yuan and net profit belonging to common shareholders of 7.3 billion yuan, an increase of 379.96 percent over the same period last year. After the announcement of higher-than-expected earnings, JD.com 's share price rose 10% at the beginning of trading that day, with a sense of "washing the shame before".

JD.com 's net profit performance this quarter is the highest since its listing, thanks to both logistics and services. According to the data, JD.com 's net service income increased 44 per cent year-on-year, of which logistics and other services revenue grew by more than 90 per cent. In addition, JD.com is also trying his best to exercise restraint in labor costs, eliminating 10 per cent of senior executives at or above the vice president level by the end of this year.