174.00 -1.19 (-0.68%)
Pre-Market: 8:00AM EDT
|Bid||174.02 x 900|
|Ask||174.46 x 800|
|Day's Range||174.89 - 178.50|
|52 Week Range||129.77 - 195.72|
|Beta (3Y Monthly)||1.84|
|PE Ratio (TTM)||50.11|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Alibaba has delayed its listing in Hong Kong amid growing protests in the area, according to Reuters. That listing is valued at up to $15 billion dollars. Yahoo Finance's Scott Gamm has the latest. He joins Akiko Fujita.
It’s no secret that the Chinese eCommerce segment has developed into a burgeoning market. According to a recent Barclays report from analyst Gregory Zhao, the country’s large population and increasing disposable incomes suggest that its current penetration rate of 24% only stands to rise. Amid this backdrop, a new era of eCommerce is being ushered in. Zhao deems the resulting market structure a “three-kingdom phase”. “Competition has become less about user traffic, with the focus now turning to the evolution of ecosystems, with value added services like payment, logistics, media content, marketing solutions, and offline retail integration. Based on this, Alibaba is still our preferred name in the space,” he stated. In the report, the 1.5-star analyst provides his take on Alibaba (BABA) and 2 other Chinese eCommerce Stocks.Let’s take a closer look at what the analyst had to say about each. JD.com Inc. (JD)JD has managed to pull off quite the turnaround. The company has demonstrated significant margin improvement in its last few quarters thanks to an investment in expanding its geographic operations and optimizing warehouse logistics with robotics. While this investment had a negative impact on margins in the short-term, JD is now on the right track with margins expanding by 60 bps in Q2 vs 20 bps in the previous quarter. Revenue growth has also stabilized, with it gaining 23% from the prior-year quarter. Not to mention JD is starting to embrace the team-buy model and prioritize its direct access to users on WeChat to acquire long-tail users, in order to combat the slower user growth it saw in the second half of 2018. Zhao notes that this should benefit ads and commission revenue growth on its marketplace. That being said, the eCommerce company still has a long way to go. “While new initiatives such as logistics and tech services provide another avenue for growth, we think the above positives have been fairly reflected in the consensus and stock price during the re-rating post 2Q earnings. In addition, while JD focuses on the retail market, it may miss some significant opportunities such as in Cloud and payment,” Zhao explained. As a result, the analyst initiated coverage with a Hold and set a $36 price target on August 19. His price target suggests shares could gain 15% over the next twelve months, with the stock already up 4% in the last five days. The rest of the Street takes a slightly more optimistic stance on JD. It has a ‘Moderate Buy’ analyst consensus and a $37 average price target, implying 21% upside potential. Pinduoduo Inc. (PDD) This Chinese eCommerce stock has made substantial headway in its efforts to gain market share with its unique team-buy social-eCommerce marketplace model. Its platform allows users to share product information on social media networks like WeChat and QQ as well as form shopping teams to get a lower prices on their purchases.“We prefer PDD to JD, in addition to PDD's better use of social network resources, we view a larger monetization potential during its move toward high-end markets,” Zhao noted.This strategy appears to be paying off for PDD. According to its August 21 Q2 earnings release, monthly active users rose by 88% from the year-ago quarter to reach 366 million. Management attributed this growth to company’s user-first strategy as well as its shopping festival campaign. The company also highlighted the fact that customers have been impressed with PDD’s move up to large-ticket items, its effort to improve the brand image and stock keeping unit expansion into branded products.However, it should be noted that PDD reported operating loss more than doubled to RMB1.5 billion ($212.4 million) compared to RMB6.6 million ($934,500) in the prior-year quarter. Even with this loss, the Barclays analyst believes PDD’s strategy will drive sustainable long-term growth. “While the Street is concerned about PDD's profitability in intensive marketing, we regard this investment as necessary at the current stage. In the long run, we expect upside in its ARPU and take rate during its expansion into the high-end market, along with an improving margin profile,” Zhao explained. Based on all of the above factors, he initiated coverage with a Buy and set a $32 price target on August 19. The analyst believes share prices could surge 6% over the next twelve months. This is on top of the 28% growth the company has seen over the last five days.All in all, the consensus among analysts is that PDD is a ‘Moderate Buy’. Its $27 price target suggests 11% downside. Alibaba Group (BABA) It’s easy to see why the last stock on our list is widely considered to be the China equivalent of eBay (EBAY) and Amazon (AMZN). With 55% market share, Alibaba has cemented itself as the top player in the space.BABA’s “new retail” strategy centers around combining the best of both online and offline commerce to provide a shopping experience for the customer. The company creates this experience through three main eCommerce sites: Alibaba.com, its international trade site, Taobao, a Chinese online shopping website and Tmall, a Chinese-language website for business-to-consumer online retail. So far, investors like what they see. On August 15, BABA reported revenue of RMB114.9 billion ($16.7 billion) or a 42% year-over-year gain. Adding to the good news, user acquisition programs which deepened its penetration into less developed areas drove a 20 million increase in annual active users. By no means is the company stopping there. BABA’s cloud products alone generated RMB7.8 billion ($1.1 billion) in quarterly revenue, up 66% year-over-year thanks to the launch of over 300 new products and features in Q2. The company is also expanding its product offerings to include digital payments, online entertainment and food delivery.Based on all of these positive developments, Zhao points to BABA as most poised to outperform. “Alibaba is still our preferred name in the space, given its top market position, attractive valuation and monetization perspective,” he explained. As a result, he reiterated his Buy rating and $225 price target. With shares already climbing 8% in the last five days, the analyst sees even more upside as his price target suggests 28% upside. Wall Street mirrors Zhao’s sentiment, with the consensus among analysts being that BABA is a ‘Strong Buy’. Its $224 average price target suggests 28% upside potential.
Pinduoduo stock is the IBD Stock Of The Day. The unique Chinese e-commerce company, self-described as "Costco meets Disneyland," smashed second-quarter earnings estimates.
Global stock markets are still trading violently but the U.S. equities are still battling close to the all-time highs. So the upside potential is still viable. Wednesday we saw strong earnings reports. This confirm that there are still stock trades to hunt in spite of the geopolitical risks and rhetoric.Our five stock trade to watch for Thursday include: Walmart (NYSE:WMT), Lowe's (NYSE:LOW), Alibaba (NYSE:BABA), Xilinx (NASDAQ:XLNX), and Bitcoin Top Stock Trades for Tomorrow No. 1: WMTInvestorPlace - Stock Market News, Stock Advice & Trading TipsWMT stock is near all time highs and for good reason. The company has taken the fight to Amazon (NASDAQ:AMZN) head on and it's doing well against this formidable opponent.Investors loved the earnings report last week and WMT stock rallied 8% on the headline. From here, there could be better entry points for the short term. WMT stock is vulnerable to fade and a retest of $110 per share. Maybe even fill the gap $2 lower. But for the long term, this company will continue to deliver and adapt to the market demands. If I am long WMT already, then I stay long. Otherwise I would buy the dips for the long term. * The 10 Best Marijuana Stocks to Buy Now Wednesday, Target (NYSE:TGT) stock soared as they reported a strong quarter. This confirms the strength of the U.S. consumer spending and operational success. Both companies are winners because of strong execution. WMT is employing technology trend to better compete with AMZN one to one and beat it. Top Stock Trades for Tomorrow No. 2: LOWLOW stock spiked today after a strong earnings report. The investor expectations were tepid going into the event so it made for an easy hurdle. This however is not the time to pile into LOW stock and chase this rally.The reason the expectations were low is because it has a long history of trailing its competition Home Depot (NASDAQ:HD). I believe this continues until we get several reports to prove otherwise. Case in point, HD stock is up 26% year-to-date which 60% better than LOW. This is also true for the last five year stats.So if I took in profits from the LOW stock reaction to earnings, I would book it for now. From here, it carries the risk of a fade to fill the gap below especially if markets in general correct. This is not the same as shorting the stock.So if I want to remain constructive on the segment, I would rotate my risk into HD stock instead. This one is sitting at another breakout line. Even though the LOW report shows domestic comparable sales beat those of HD, over the long term HD stock has performed better thanks to more consistent management execution. Top Stock Trades for Tomorrow No. 3: BABABABA stock has an interesting setup brewing. It will be tough to trigger but the reward if they do so is great. If the BABA stock bulls can break above $180, they can target $192 per share or higher. It won't be easy and there will be resistance at the neckline and at $185.For a while, BABA stock has been lurking just under this breakout level and doing it from higher lows. But this is a steep rising wedge which leaves the stock vulnerable to pullbacks. If the general markets cooperate then BABA will make this happen; it's a matter of time.This would then fill an old gap and also places it at a was prior fail. The interesting part is that was also a neckline that if bulls can break could carry it to $200 per share or higher.On pullbacks, BABA stock could fade to $170 which is just above its yearly point of control where bulls and bears loved to fight. Top Stock Trades for Tomorrow No. 4: XLNXXLNX stock is no stranger to headlines. The whole chip sector has been in the line of fire in the economic war between the US and China. XLNX stock moves more on headlines extrinsic to its own execution than not.But Tuesday XLNX fell on headlines of possible "unpatchable" security flaw in its equipment. So this is a rare dump from intrinsic problems. Nevertheless, this dip places XLNX sock at a place with it makes sense that it mounts a rally soon.XLNX stock bulls defended the $100 mark hard on the May correction and yesterday's scare didn't even come near it. So as long as the support band below holds, it is likely that XLNX makes another run at $120 per share. There will be resistance at $109 and $113, but if the general markets rally then XLNX can slice through them and reach it major accident scene from the end of July. Top Stock Trades for Tomorrow No. 5: BitcoinSince the love-fest with bitcoin of 2017 the interest in the digital coin has not abated. While it's not hogging the headline it is still a hot debate. Skepticism is high so Bitcoin has a questionable reputation on main street and Wall Street.Both extremes are wrong when it comes to bitcoin. It has value because people say so. This is no different than gold. Bitcoin and gold are rare and people want them so they will continue to be valuable on that assumption. Critics say that it's used for illicit activities and to that I say that so is cash. At least with bitcoin, they always leave an electronic trace. Furthermore, FIAT cash only has value because the people say so. So in essence cash and bitcoin are more similar than we think.What's the best place to buy bitcoin? This depends on time frame. If I am buying it like gold as a long term investment then timing really doesn't matter much. But there are clues on the charts to offer some guidance. Bitcoin price here is falling into support. So in theory it should bounce back up to 10,200. But it moves so fast that by the time you read this note, the landscape would have probably change a lot. * 10 Undervalued Stocks With Breakout Potential So, it's best to get the general feel for the zones that matter and know what's at stake. For that here is a free video from this week that does a great job of that. It sheds light on what's in store for Bitcoin price.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 5 Top Stock Trades for Thursday: WMT, BABA, LOW, XLNX, Bitcoin appeared first on InvestorPlace.
No Chinese stock excites traders like Iqiyi (NASDSAQ:IQ).Source: Faizal Ramli / Shutterstock.com Iqiyi (pronounced Ee-KWEE-kwi) is a streaming video company focused on people whose primary device is a mobile phone. Its shows are short and highly interactive, perfect for a young worker on their bus ride or coffee break. It is very different from Netflix (NASDAQ:NFLX), although both have intense, passionate CEOs.Iqiyi is a partial spin-off of Baidu (NASDAQ:BIDU), a search engine and cloud that's the weakest of that country's three "Cloud Emperors." Both Iqiyi and Baidu are growing, but Iqiyi's losses remain ahead of expectations.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill For the quarter ending in June Iqiyi lost $339 million, 49 cents per share fully diluted, on revenue of $1 billion. Iqiyi lost almost the same amount during last year's second quarter, but with 33% less revenue. The numbers, and a ton of call options from traders betting on a different result, caused an overnight sell-off of 9%, but IQ stock quickly recovered. Iqiyi Is Not Like NetflixInvestors on Aug. 21 are going to read all about the drop, and less about the recovery.The recovery is based on the paid membership. Subscribers pay just $3 per month. Members also see ads, which they don't do on Netflix. Since IQ users are members these ads can be narrowly targeted.I have written about IQiyi before and questioned its business model. I also warned against buying its sharp rise this spring (which wasn't sustained).More recently, I have emphasized the difference between Iqiyi's model and that of Netflix. It's now No. 1 in the Chinese market, ahead of Tencent (OTCMKTS:TCEHY) and Alibaba (NASDAQ:BABA), whose parent companies are much bigger. Iqiyi Is Like NetflixBut in some ways Iqiyi is a lot like Netflix.As founder and CEO Tim Gong Yu noted in the company's recent earnings call, Iqiyi creates programs in-house that are tailored to its unique audiences, and spends money ahead of the market.Its earliest hits were reality games like "The Rap of China," "The Big Band," and "CZR," all variations of "American Idol." It is now paying more for scripted dramas like "The Thunder," a detective show, "Go Go Squid," a romantic comedy, and "Love and Destiny," a costume epic. Long-term liabilities have doubled, most of them covered by convertible notes.Iqiyi stock was also hit during its most recent quarter by an industry-wide slowdown in the advertising market. Advertising revenue fell 16%. Its subscriber growth depends on getting better wireless infrastructure in smaller Chinese cities. It also needs to keep customers once they get them, reducing churn and marketing costs per subscriber. Iqiyi is hugely popular among young people in China's biggest cities. Gong Yu admitted the company needs to raise its game among older people and those in smaller markets.Unlike Netflix, Iqiyi also has a games business. It recently acquired a game maker called Skymoons. The hope is that Skymoons programmers can deliver games based on Iqiyi shows, and game revenue was up 82% year over year. The Bottom Line on IQ StockIqiyi is still a speculative stock, but it does have a compelling story.Bulls will note that Iqiyi is still growing its customer base and that it has several different ways to monetize - memberships, advertising and gaming services. They will point to CEO Tim Gong Yu, who has his company ahead of rivals backed by much bigger companies. They will brush off losses as the price of growth, over 27% year-over-year for the period from January through June.Bears will question the China story, point to the abundant competition, and note that Iqiyi stock has yet to narrow its losses.Iqiyi is a game for younger, hungrier investors than me. Buy if you're young and can afford a loss, watch it closely, and your patience may be rewarded.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Iqiyi: Like Netflix, but Not Like Netflix appeared first on InvestorPlace.
I'm a long-term bull on China stocks. Even as a long-term bull, however, I recognize that beaten up China stocks won't rebound until China's economy stops slowing.Fortunately, over the past few weeks, several signs and trends have emerged which imply that China's economy is starting to curb its slowdown. Those signs and trends are as follows: * OECD Leading Indicator Trending Higher: The OECD's Composite Leading Indicator (or CLI) for China, which has been compressing since late 2018, has improved every month from February through June 2019. * OECD Consumer Confidence Trend Has Bounced Back: Similar to the OECD's CLI, the OECD's Consumer Confidence Index (or CCI) for China compressed throughout 2018, but has rebounded in 2019. * Retail Sales Trends Improved in 2019: The retail sales growth trend in China has improved from 8.1% to 8.2% in the last two months of 2018, to 8.3% through the first seven months of 2019, including an average gain of 8.7% over the past three months. * Manufacturing Activity Shows Signs of Bottoming: China's Purchasing Manager's Index (PMI) reading compressed rapidly throughout 2018, but has shown signs of stabilizing between 49 and 50 in 2019. * Trade Data Stabilizing: Amid a trade war with its biggest trading partner, China's trade data -- both imports and exports -- has been sluggish over the past several months. But, June trade data was much better than expected on both the imports and exports side.All these signs and trends may just be a series of head-fakes. But, I don't think so.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Instead, the volume of data here strongly suggests that China's economy is finally starting to stabilize, and that means it's time to start buying the dip in high-quality China stocks, most of which still have compelling long-term upside. China Stocks to Buy on the Dip: Alibaba (BABA)Source: Nopparat Khokthong / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on Alibaba (NYSE:BABA) is very simple. China has more than 1.4 billion people. Less than 60% of those people are connected to the internet, versus a 90% internet penetration rate in North America. Over the next decade-plus, as China's consumer economy urbanizes and digitizes, China's internet penetration rate will rise towards 90%, implying hundreds of millions of new shoppers in China's e-retail ecosystem.Most of those shoppers will do the bulk of their e-retail shopping on Alibaba. Thus, over the next decade-plus, Alibaba's revenues and profits will stay on a big growth trajectory. That big profit growth will push BABA stock higher in the long run.Near-Term Bull Thesis: The near-term bull thesis on BABA stock has everything to do with margins. Specifically, Alibaba has never had a problem with revenue growth. Thanks to secular e-commerce tailwinds, Alibaba has been a 20%-plus revenue growth company for a long time. * 10 Undervalued Stocks With Breakout Potential Alibaba's margins have been under tremendous pressure over the past few years, thanks to big growth investments and competitive pressures. Over the past few quarters margin trends have improved significantly. If these margin improvements persist, BABA stock could continue to move materially higher in the near-term. JD.Com (JD)Source: Sundry Photography / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on JD.com (NASDAQ:JD) mirrors the long term bull thesis on Alibaba. A ton of consumers in China, a significant portion of whom still aren't connected to the internet, imply huge growth potential over the next several years for China's e-commerce marketplace and its biggest players -- Alibaba and JD.On top of that, JD is also looking to expand internationally, and that international expansion provides a huge growth opportunity for the company in the long run. JD projects as a big growth company for a lot longer, and all that growth should propel JD stock higher in the long run.Near-Term Bull Thesis: Also much like Alibaba, the near-term bull thesis on JD stock has everything to do with margins. JD employs a very similar model to Amazon (NASDAQ:AMZN). Consequently, the company has historically run at anemic margins. But, margins in 2019 have improved meaningfully as the company has reaped the rewards of 2018 efficiency-related investments.These investments should continue to yield margin-expanding rewards for the next several quarters. As margins continue to track higher, so should JD stock. Vipshop (VIPS)Source: madamF / Shutterstock.com Long-Term Bull Thesis: At the risk of sounding like a broken record, the long term bull thesis on online discount retailer Vipshop (NYSE:VIPS) centers around the idea that China's e-commerce market is in the first few innings of a massive growth narrative which will ultimately power sustained growth at Vipshop.Specific to Vipshop, you have a company which dominates the online discount niche. Looking over at the U.S. retail landscape, the discount niche is a very valuable one (see Dollar General (NYSE:DG), TJX Companies (NYSE:TJX), or Five Below (NASDAQ:FIVE)). As such, U.S. comps imply that Vipshop has a bright future as the go-to online discount retailer in China.Near-Term Bull Thesis: As is the case with every other China e-commerce stock, the near-term bull thesis on VIPS stock has to do with the fact that -- for the first time in several years -- Vipshop's margins are meaningfully improving. This big improvement was on full display last quarter, when gross and operating margins both increased nearly 300 basis points year-over-year. * The 10 Best Cheap Stocks to Buy Right Now The implication is that this margin improvement will persist, driven by continued cost-cutting and logistics improvements. As margins continue to trend higher over the next few quarters, so will VIPS stock. Ctrip.com (CTRP)Source: rafapress / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on online travel service provider Ctrip.com (NASDAQ:CTRP) revolves around one critical statistic: passenger flight volume per capita. In 2015, America's passenger flight volume per capita was 2.5. In most developed economies, it was either near or above 1. China's passenger flight volume per capita in 2015 was around 0.3.This discrepancy implies huge room for China air travel volume growth over the next several years. China is projected to be the fastest-growing air travel market over the next several years. It's also projected to become the biggest air travel market by 2024. As China's air travel market rapidly expands over the next several years, China's go-to air travel booking site, Ctrip.com, will benefit from big traffic, revenue, and profit growth. All that growth will ultimately power CTRP stock higher in the long run.Near-Term Bull Thesis: The near-term bull thesis on CTRP stock ties back into this idea that China's economy is stabilizing. Specifically, air travel is a very economically sensitive industry. That is, when times are good and consumers have extra cash to spend, they often spend it on travel. The converse is true, too.Consequently, as China's economy stabilizes and starts to improve over the next several quarters, China's air travel trends should start to similarly improve. As they do, Ctrip's numbers will meaningfully improve, which should spark a nice recovery rally in CTRP stock. Bilbili (BILI)Long-Term Bull Thesis: From where I sit, the long-term bull thesis on Bilibili (NASDAQ:BILI) looks a lot like the long-term bull thesis on Pinterest (NYSE:PINS). That's not to say these two platforms are the same. They aren't. Pinterest is a visual discovery platform. Bilibili is an anime gaming and comic-focused video platform.These two companies do have similar characteristics: huge user bases, unique value props, and nascent but growing ad businesses. The implication for Bilibili and Pinterest is that -- as these companies build out their revenue models over the next several years -- their huge user bases will translate into huge revenues and profits, and ultimately huge market caps.This dynamic is already playing out at Pinterest. It will play out at Bilibili in a similar fashion over the next several years.Near-Term Bull Thesis: Near-term, BILI stock looks good because it increasingly appears that China's economic stabilization is having a positive impact on China's digital ad market. Specifically, Weibo (NASDAQ:WB) and Baidu (NASDAQ:BIDU) are two Chinese digital ad companies which have struggled over the past few quarters. But, last quarter, each company reported better-than-expected numbers. The implication? China's digital ad market is finally improving. * 15 Growth Stocks to Buy for the Long Haul That's great news for Bilibili. Unlike Weibo and Baidu, Bilibili has maintained a big growth rate over the past few quarters as the ad market has slowed. Now that the market is ramping back up, Bilibili's numbers next quarter should be extra good. If so, that will spark a healthy rebound rally in beaten up BILI stock. Weibo (WB)Source: testing / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on Chinese micro-blogging site Weibo revolves around the idea that this company is, for all intents and purposes, the Twitter (NYSE:TWTR) of China. There are just three big differences.One; Weibo has way more daily active users (211 million, versus 139 million at Twitter). Two; Weibo is more profitable (38% year-to-date EBITDA margins, versus 35% at Twitter). Three; Weibo makes way less revenue per user (Q2 ARPU of about $2, versus around $6 at Twitter).The first two differences are positives for Weibo. The third is a negative. Presumably, Weibo's unit revenue trends will improve as their ad targeting capabilities improve and as China's ad market matures. As this discrepancy narrows, so will the market cap difference between Weibo ($10 billion) and Twitter ($30 billion) -- implying huge growth potential for WB stock in the long run.Near-Term Bull Thesis: The near-term bull thesis on WB stock has to do with two things. First, revenue trends are turning around. Over the past several quarters, revenue growth has been trending down every quarter. Next quarter, though, management is guiding for revenue growth to improve sequentially.Second, margin trends are improving. Over the past several quarters, margins have been under pressure. Last quarter, that pressure eased in a big way.So long as revenue and margin trends improve from here, then beaten-up WB stock should bounce back in the near term.As of this writing, Luke Lango was long BABA, JD, AMZN, TJX, FIVE, CTRP, and BILI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 6 China Stocks to Buy on the Dip appeared first on InvestorPlace.
Alibaba (BABA) pushed back its planned secondary stock listing in Hong Kong. Alibaba aimed to raise as much as $20 billion through the listing.
Lately it's hard to get away from all the trade-war headlines. In the meantime, many investors are missing the other "trade war" -- the one involving 5G stocks.And there's been some interesting developments there that I'd like to call to your attention today.Pretty much all the big mobile carriers, from AT&T (NYSE:T) to Verizon (NYSE:VZ), are racing to roll out their own network with the superfast 5G technology. Overseas, Vodafone (NASDAQ:VOD) has been rolling out 5G across Europe and, soon, New Zealand.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut before you can use a 5G network, you've got to have a 5G phone. And really, that race is between Apple (NASDAQ:AAPL), Samsung, and Huawei. * 10 Marijuana Stocks to Ride High on the Farm Bill Apple is expected to introduce 5G next year -- with a 5G iPhone, plus a 5G MacBook. (Yes, a MacBook with cellular service!)Samsung has them beat. It got there in April, with the Galaxy S10 5G.Now, Huawei is pulling into second place in the 5G race. On Friday, it began selling its Mate 20 X 5G phone at home in China.Source: Huawei Huawei was no household name here in the United States until it got caught in the trade war. You may recall that in May, the U.S. government "blacklisted" Huawei. Once the 90-day grace period is up, American firms will no longer be allowed to even supply parts for Huawei phones.But there's a reason U.S. companies (and everyone else) are eager to do business in China:China has over 1.4 billion people. In other words, nearly one-fifth of humanity lives there. Not only is China the largest country by population… it's also the second-largest economy.And that economy is booming -- I've seen it with my own eyes. I was just in China this spring, and quickly reported back in Investment Opportunities about the opportunity I saw there. Skyscrapers are cropping up as fast as weeds in your yard. Most importantly, there remains a huge, untapped market of potential customers for smart devices. And those customers will want 5G.The World's Biggest Investor in 5GThe story here is much bigger than a Huawei phone. 5G is central to the country's "Made in China 2025" plan. But even in the current five-year plan (2015 to 2020), China set aside $400 billion for 5G investment. (That's roughly equivalent to the entire market cap of Alibaba (NYSE:BABA), the "Amazon of China.")When Deloitte ran those numbers through 2018, it found that China had outspent the United States by $24 billion on 5G infrastructure.As a result, China will be a huge testing ground for: * Super-fast smartphones from Huawei, running on 5G networks from China's state-owned mobile providers, like China Mobile (NYSE:CHL). * Smart highways. Speaking of China Mobile, that company is working on smart toll stations, plus traffic-tracking devices powered by artificial intelligence, which will help the country implement autonomous vehicles. * In addition to self-driving cars, there'll be self-driving buses. In the city of Zhengzhou - roughly 450 miles southwest of Beijing, where I stayed in May - the bus company Yutong is already testing electric buses that are autonomous… and avoid collisions by communicating via 5G. * Smart streetlamps. Yes, even the streetlamps will connect to the 5G network. The lamps will be automatically adjusted, depending on the time of day and the weather conditions (making them more energy-efficient).The possibilities are pretty much endless.But they're just that -- possibilities -- until you have the right hardware.That's true of any tech trend. It was true in the 1990s, when Cisco Systems (NASDAQ:CSCO) provided the "plumbing" that got all our homes and businesses connected to the internet. It was true in the 2000s, when Qualcomm (NASDAQ:QCOM) provided the chips that made the first iPhones work. (And they're still in the iPhones of today, for that matter.)Here's the key with 5G: All of those devices need to be powered.That's why any investor needs to be on the lookout for the next big breakthrough in battery technology. It's an innovation that will have multi-trillion-dollar economic implications:Think of a world with self-driving electric cars that have massive ranges. Think of an iPhone that needs charging just once per month. Think of mass adoption of clean solar and wind energy. Think of airplanes that run on batteries. Think of the eventual demise of the oil and gas industry.This is where we're headed -- but there are some serious limitations to the current technology! Lithium-ion batteries are too bulky, without enough battery life, and with too many safety concerns, not to mention the fact that key materials are in short supply. That's why I believe the next big battery breakthrough will go down as one of the greatest inventions of the 21st century.I've spent an enormous amount of time studying the battery industry. I can tell you this mega innovation isn't a matter of "if," it's a matter of "when." Click here for my presentation with the results of my research. That way, you can get in on this trend BEFORE the world catches on.Insiders are already calling this potential new battery a "paradigm shift" in energy technology. Forbes calls it simply: "The battery that could change the world."Folks who get in on this breakthrough now, BEFORE it's rolled out on a mass scale, will have the chance to be a part of perhaps the single largest legal creation of wealth in the last 25 years.I can share with you what I've learned and show you how to profit. Click here to learn more.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post For 5G Stocks, the Race Just Heated Up Big Time appeared first on InvestorPlace.
Alibaba (BABA) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Alibaba stock has been a big winner since its debut in September 2014. With solid fundamentals and a bullish chart, the case for more upside is a strong one.
The unrest is hurting business confidence in the city. Last week, the Hang Seng Index fell to its lowest level since the beginning of January.
Hong Kong protests are making an impact. Alibaba has delayed an up to $20bn listing in the city, according to a Reuters report. Pressing ahead with the Chinese ecommerce giant’s listing — Hong Kong’s biggest in a decade — might have annoyed Beijing.
Mohamed El-Erian Says Europe Headed Down Mohamed el Erian, chief economic adviser of Allianz, doesn’t have a greatly optimistic view of the European economy. He says there is a 70% chance of the continent plunging into a recession. The United Kingdom, Italy, and Germany are all paralyzed by domestic issues including Brexit, a broken government, […]The post Market Morning: Europe Falters, Alibaba Postpones On Hong Kong, appeared first on Market Exclusive.
Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong, Reuters reported, citing two people with knowledge of the matter. While no new timetable has been formally set, Alibaba could potentially launch the deal as early as October, still seeking to raise $10 billion-$15 billion, the report added. The delay was due to the lack of financial and political stability in Hong Kong, the report said.
HONG KONG/NEW YORK (Reuters) - China's biggest e-commerce company Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub, two people with knowledge of the matter told Reuters. Alibaba's Hong Kong-listing plans are being closely watched by the financial community for indications on the business environment in the Chinese-controlled territory and provides a window into Beijing's reading of the situation. While no new timetable has been formally set, Alibaba could potentially launch the deal as early as October, still seeking to raise $10 billion-$15 billion, depending on whether political tensions had eased and market conditions became more favorable, one of the people said.
Alibaba has postponed its long-awaited $15bn (£12.3bn) stock market listing in Hong Kong in the midst of pro-democracy protests in the Asian financial hub, according to reports.Reuters cited a source with knowledge of the matter as saying that Alibaba could launch its initial public offering as soon as October if tensions between protestors and Chinese police had eased and the market outlook had improved.
HONG KONG/NEW YORK (Reuters) - China's biggest e-commerce company Alibaba Group Holding Ltd has delayed its up to $15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub, two people with knowledge of the matter told Reuters. Alibaba's Hong Kong-listing plans are being closely watched by the financial community for indications on the business environment in the Chinese-controlled territory and provides a window into Beijing's reading of the situation. While no new timetable has been formally set, Alibaba could potentially launch the deal as early as October, still seeking to raise $10 billion-$15 billion, depending on whether political tensions had eased and market conditions became more favourable, one of the people said.
Investing.com - Chinese e-commerce giant Alibaba Group Holdings Ltd (NYSE:BABA) is postponing its plans to issue secondary offering in Hong Kong amid the ongoing political unrest in the city, Reuters reported on Wednesday citing two unnamed people with knowledge of the matter.
Alibaba's widely anticipated listing could still come later this year, perhaps as early as October, a report says.