E-commerce

GoTo is back to facing less existential problems

21 Mar 2023

The $8 bln Indonesian superapp may not need to raise capital in a hurry. It expects to reduce its cash burn by up to 65% this year. Cost cuts are paying off but hard questions on future growth and competition with its financially stronger Singaporean rival Grab remain.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

Capital Calls: L&G/UK insurers

8 Mar 2023

Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.

Amazon expansion collides with contraction

6 Mar 2023

Cities from Newark to Dallas bent over backwards to court the e-commerce giant five years ago. Now it is hitting the pause button on HQ2. The fate of a Virginia compound depends on labor market and work-from-home trends. Even $1 trillion companies are without a crystal ball.

Fintech darling Stripe has first-world problems

2 Mar 2023

The payment startup is raising new cash at a valuation roughly half its previous worth of $95 billion. A solid business model and rapid growth allowed Stripe to stay private. But slowing revenue and the need to retain employees have forced it to acknowledge financial gravity.

Walmart’s ho-hum is the new fabulous

21 Feb 2023

The $390 bln retailing giant said its next fiscal year isn’t going to be great. Low growth and slim margins would typically be concerning. But it turns a profit, which can’t be said for Amazon’s retail business. Plus, Walmart doesn’t have tech stink attached to its name.

Capital Calls: Shein’s ambition looks a stretch

20 Feb 2023

Concise views on global finance: The privately held Chinese fast-fashion clothing company is trying to entice investors with projections it can double revenue in three years.

Amazon and Walmart: different start, same ending

2 Feb 2023

Both retailing giants’ shares posted nearly identical returns over the past five years. Walmart might be better positioned than Amazon, whose retail business posted a loss for 2022. But both firms have underperformed the market and smaller peers.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

Capital Calls: Activism, Bond spat, Airline M&A

18 Jan 2023

Concise views on global finance: Aggressive shareholder campaigns picked up in 2022, but activism is becoming an overcrowded strategy. Meanwhile, M&A machine Melrose takes on a fight that might not be worth winning, and German airline Lufthansa eyes a stake in Italy’s ITA.

Jack Ma’s Ant is China tech’s tiniest bellwether

9 Jan 2023

The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.

E-commerce will go viral on social media in 2023

27 Dec 2022

TikTok and YouTube are among those fighting for a piece of the estimated $46 bln shopping market that’s growing twice as fast as ads. It’s a sensible strategic move, but recession would dash some plans. Many products also won’t suit the apps and competition is expanding quickly.

New buy-now-pay-later fad runs old-school risks

8 Dec 2022

After Klarna and others saw their valuations slashed, venture investors are now pouring money into business-focused lenders like Wayflyer. It sounds like digital trade finance, which has a patchy past. There’s often a good reason that small borrowers can’t get money elsewhere.

Capital Calls: Twitter’s news problem

6 Dec 2022

Concise views on global finance: If the U.S. Congress passes a law that allows news organizations to band together and negotiate with online platforms, Elon Musk may have one more challenge to add to his growing list.

Capital Calls: Farfetch

1 Dec 2022

Concise views on global finance: Shares of the New York-listed online retailer dropped over 20% as its plan to sell e-commerce services to luxury groups like Salvatore Ferragamo failed to convince investors.

Buy-now-pay-later has a case of the holiday blues

29 Nov 2022

Even though the use of credit cards has jumped, the big U.S. shopping weekend hasn’t been great for e-borrowing. With the economic outlook weakening, that isn’t terrible. The trouble is that investors in companies like Affirm are still expecting massive growth.

Capital Calls: Ticketmaster and Taylor Swift

18 Nov 2022

Concise views on global finance: A meltdown involving the pop star’s upcoming “Eras” concert tour is attracting an audience on Capitol Hill and risks an unwanted corporate fight with the artist herself.

Capital Calls: American shoppers

16 Nov 2022

Concise views on global finance: Target blamed its ugly quarterly results on consumers pulling back on discretionary items even as fresh government data shows they keep buying loads of stuff.

Walmart turns inflation into a land grab

15 Nov 2022

The $375 bln retailer is attracting higher earners with its lower prices, gaining market share in the third quarter. That’s leading to revenue growth despite the uptick in prices. But the makers of the soaps and snacks that Walmart sells are seeing their pricing power slip away.

Capital Calls: Jeff Bezos

15 Nov 2022

Concise views on global finance: The Amazon founder is telling consumers to batten down the hatches. Yet the e-commerce giant has plenty of room to capture more online market share.