Due to the market reset expectations for Douyin's growth prospects, Meituan (03690.HK), Alibaba (09988.HK) and Tencent (00700.HK) are expected to benefit according to the report released by Fuli.

The report indicated that Alibaba has been strengthening consumer experience and merchant performance through reinvestment and AI strategy, with the goal of narrowing the gap in transaction volume growth with industry commodities. As the expected gap in industry competition narrows or triggers potential reevaluation of Meituan, the buy rating is maintained and the target price is raised from 135 yuan to 142 yuan. Tencent is the preferred choice in the coverage range because they believe that video accounts have great development potential.

Fuli expects that the short video market share will continue to grow, but the normalization of growth momentum and the degree of competition are not as intense as the market imagines, which may bring surprises and trigger a reevaluation of the industry.