Walmart proves it’s a port in gathering storm 15 Aug 2019 Strong sales last quarter, especially in e-commerce, allowed the $300 bln giant to sail past growing headwinds battering retail rivals. It may even be able to withstand more Trump tariffs. And in a broader downturn, CEO Doug McMillon could pick up more price-conscious shoppers.
Alibaba gets tailwind from Beijing stimulus 15 Aug 2019 Better-than-expected quarterly results from Jack Ma's $420 bln e-commerce empire show Chinese consumers are still spending amid slowing economic growth and a trade war. Tax cuts boosted earnings at rival JD.com. Lower levies will also help keep Alibaba's momentum going.
JD deserves to be in trade-war tech discount bin 9 Aug 2019 Chinese new-age stocks have turned volatile. Loss-making JD, the $40 bln Alibaba-rival, has lost up to one fifth its value since July. The retailer’s focus on sales of big-ticket items make it especially vulnerable to slowing growth and trade tensions. Rivals look more nimble.
EU Amazon case pushes tech towards utility status 17 Jul 2019 Antitrust tsar Margrethe Vestager may probe the $990 billion group’s use of merchants’ data. That would fit with a wider European drive to stop technology companies’ platforms from favouring their own services. Tighter rules will, however, cement bigger players’ dominance.
Alibaba stock should have local staying power 16 Jul 2019 The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.
Anta outruns short-sellers at surprising pace 9 Jul 2019 The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.
Amazon could be a smart shopper in Southeast Asia 8 Jul 2019 The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.
European IPO investors show reassuring rationality 27 Jun 2019 VW’s truck unit and telco Africa Airtel will sell shares at the bottom of their respective ranges while Global Fashion Group cut its price. Unlike recent U.S. mega-floats such as Uber, valuations were cheap. It’s a welcome sign credulity has limits despite buoyant stock markets.
Walmart e-commerce flies on, using Jet.com’s parts 13 Jun 2019 The $311 bln retailer is folding much of the upstart it bought in 2016 into its own business. While Jet.com never took off at scale, it helped revitalize the U.S. behemoth’s online sales. Focusing on its core brand underlines Walmart’s key advantage over Amazon: physical stores.
Credit Suisse gets closer to real Alibaba trophy 12 Jun 2019 The tech giant has picked the Swiss bank, along with part-owned CICC, to lead a $20 bln Hong Kong share sale. Both have largely stayed clear of Alibaba rivals, suggesting loyalty is being rewarded. They are now positioned to contest a bigger prize: $150 bln Ant Financial’s IPO.
Jeff Bezos adds fasting to meal-delivery menu 11 Jun 2019 He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.
Alibaba’s cracks show by revisiting Hong Kong 28 May 2019 The $400 bln e-commerce company plans to raise up to $20 bln from a second listing, five years after its New York IPO. Investors closer to home may give Alibaba a richer valuation. But seeking fresh capital alongside younger rivals also suggests its dominance is under threat.
Meituan Dianping delivers sweet-and-sour to Uber 23 May 2019 Getting bigger enabled the $40 bln Chinese company to cut its operating loss by charging restaurants for ads and fees to tote meals. Intensifying competition with Alibaba, however, will eat into cash. Uber can expect similar trouble as it squares off with Amazon-backed Deliveroo.
FamilyMart fracas reheats Chinese corner-store war 23 May 2019 The $13 bln Tokyo-based chain is suing to end its mainland joint venture. It already ranks second in China, ahead of Japanese peers Lawson and 7-Eleven. Untethered, it could expand faster, find a tech-savvier partner, and perhaps take the lead.
China’s e-commerce upstart makes its presence felt 20 May 2019 The $26 bln Pinduoduo has faced regulatory scrutiny and allegations of dodgy numbers. Now it boasts more shoppers than rival JD and has put Alibaba on defence in parts of the country. The upstart’s latest quarterly loss, though, keeps alive questions about the cost of growth.
Amazon-Uber food fight means empty bellies for all 17 May 2019 The web giant is backing a $575 mln investment in Deliveroo, which ferries meals to time-poor urbanites. It means the UK-based group can continue its assault on rival Uber Eats in Europe. Thin margins and deep-pocketed investors are the perfect ingredients for perpetual losses.
India’s unicorns leading charge to credit boom 17 May 2019 Ride-hailing outfit Ola and payments app Paytm, backed by Warren Buffett’s Berkshire Hathaway, just unveiled credit cards in a country where debit cards dominate. Generous rewards from SBI and Citi follow tech’s subsidy playbook. In this case, though, growth may be profitable.
Tencent deserves its premium over Alibaba 15 May 2019 China’s tech titans face slower growth in their respective strongholds of video games and e-commerce. As they fight it out in finance, Alibaba's $150 bln affiliate, Ant, is winning. Tencent's chat app, though, gives it an overall edge that justifies a higher earnings multiple.
Jumia reveals risky allure of big African numbers 13 May 2019 The online retailer’s first-quarter operating losses widened even though revenue doubled. After falling 63% from their post-IPO peak the shares still trade on a similar multiple of future sales as Alibaba. Africa has promise but merits a steeper discount to the Chinese behemoth.
JD’s profit strength hides shopper fatigue 10 May 2019 After an impressive first quarter, China's $40 bln web retailer is on track for its first annual net profit. But customer growth has flatlined. That suggests damage from nemesis Alibaba catching up in logistics, and upstarts like Pinduoduo adapting faster to new consumer trends.