171.16 0.00 (0.00%)
After hours: 7:59PM EDT
|Bid||171.06 x 800|
|Ask||171.50 x 1200|
|Day's Range||170.79 - 173.34|
|52 Week Range||129.77 - 195.72|
|Beta (3Y Monthly)||1.89|
|PE Ratio (TTM)||48.94|
|Earnings Date||Oct 31, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||224.04|
(Bloomberg) -- Indian fintech giant Paytm is close to scoring $2 billion of new financing from investors including Jack Ma’s Ant Financial, Japan’s SoftBank Group Corp. and Rob Citrone’s Discovery Capital Management to fend off an influx of new rivals, a person familiar with the matter said.The funding will be split evenly between equity and debt and values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The talks are in their final stages but the terms could still change, the person added.If a deal is finalized, Paytm could outstrip fellow high-profile Asian startups such as Grab and Gojek in valuation. Billionaire Paytm founder Vijay Shekhar Sharma is raising capital to protect the startup’s share of a potentially $1 trillion Indian payments market from new entrants including Facebook Inc., Alphabet Inc.’s Google and Walmart Inc.-owned Flipkart’s PhonePe. Over the past year, a string of new apps have made payments increasingly easy, bringing discounts and cash bonuses to young, smartphone-savvy users.Credit Suisse Group AG now estimates that the Indian digital payments market will touch $1 trillion by 2023 from about $200 billion currently. It’s a market with huge potential: Cash still accounts for 70% of all Indian transactions by value, according to Credit Suisse, and neighboring China is far more advanced with a mobile payments market worth more than $5 trillion.“India is a large market,” said Kunal Pande, head of financial services risk consulting at KPMG. “Digital payments adoption is growing quickly, yet there is room for massive growth as users get comfortable transacting digitally. The large business opportunity makes it attractive for both domestic startups and large global players.”Read more: Facebook and Google Chase a New $1 Trillion Payments MarketPaytm, which is also backed by Alibaba Group Holding Ltd., declined to comment in response to emailed questions. SoftBank wasn’t immediately available for comment during a Japanese national holiday. Ant had no immediate comment when contacted. Discovery Capital declined to comment.Paytm has in a decade become India’s biggest digital-payments brand, attracting big names in investing from Ma and SoftBank founder Masayoshi Son to Warren Buffett. Paytm’s Sharma got a huge boost in 2016 after India’s government moved to eliminate most of the nation’s paper money in circulation in a bid to curb corruption. His startup, a pioneer in the country’s nascent field, saw tens of millions of consumers and hundreds of thousands of businesses sign up for digital services in a matter of months.The entrepreneur is now extending his online empire into e-commerce and banking, even as others encroach on his turf. The Indian payments market remains a chaotic field where the rules are hazy on what players can offer, yet its promise has lured a string of competitors including Indian banks, its postal service and its richest man, Mukesh Ambani.Ant Financial, China’s largest provider of internet financial services and one of Paytm’s earliest backers, has said it will continue investing in mobile-payment providers around the world to boost offshore revenue and buttress itself from rising competition and tighter regulation at home.It’s not clear how much SoftBank would contribute, but the Japanese company is going through a rocky stretch. SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by the WeWork turmoil and Uber Technologies Inc.‘s disappointing debut, grow skittish about startup valuations.(Updates to include Discovery Capital as an investor in first paragraph.)\--With assistance from Lulu Yilun Chen and Hema Parmar.To contact the reporter on this story: Saritha Rai in Bangalore at email@example.comTo contact the editors responsible for this story: Arijit Ghosh at firstname.lastname@example.org, ;Sarah Wells at email@example.com, Edwin Chan, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Associate Stock Strategist Ben Rains dives into some of the latest U.S.-China trade war updates, including President Trump's optimism. We then look at three large-cap technology stocks to consider buying during Q3 earnings season. - Full-Court Finance
Genius Brands International “Genius Brands” (GNUS) announced today it has formed a strategic co-production partnership with Alibaba Group’s (BABA) video streaming platform, Youku, to co-produce the all-new children’s animated series, Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger. Genius Brands and Alibaba’s Youku will co-produce 52 x 11 episodes of the comedy, action-adventure series, which will be available to Chinese audiences on Youku.
(Bloomberg) -- WeWork is considering a bailout that will hand control of the co-working giant to SoftBank Group Corp., according to a person familiar with the matter, one of two main options to rescue the once high-flying startup.The Japanese investment powerhouse controlled by billionaire Masayoshi Son is convinced it can turn around the cash-strapped American company with the right financial controls in place, the person said, asking not to be identified talking about internal deliberations. WeWork’s board and backers however are also weighing another option: JPMorgan Chase & Co. is leading discussions about a $5 billion debt package, Bloomberg has reported.Either rescue package, or some combination of them, would ease a cash crunch that could leave the office-sharing company short of funds as soon as next month. We Co., the parent of WeWork, had been headed toward one of the year’s most hotly anticipated IPOs before prospective investors balked at certain financial metrics and flawed governance, turning the American giant into a cautionary tale of private market exuberance and costing the company’s top executive his job.The fast-growing, money-losing startup had been counting on a stock listing -- and a $6 billion loan contingent on a successful IPO -- to meet its cash needs.Son, SoftBank Risk Too Much With WeWork Takeover: Tim CulpanRead more: WeWork Is in Talks for $5 Billion Debt Package With LendersThe Wall Street Journal first reported that SoftBank may be discussing a deal to gain control of WeWork. Representatives for the Japanese company weren’t immediately available for comment Monday, a national holiday.SoftBank is already WeWork’s biggest shareholder but the proposed deal would shore up its control of the startup, the person said, declining to elaborate on when a decision on the competing offers might be reached. The Japanese company is in advanced talks to acquire more shares at a significantly lower valuation than the $47 billion WeWork sported in January, two people familiar with those discussions said last week. The New York Times has reported that members of the board would meet Monday to decide on which bailout to select.If the board opts for the SoftBank deal, the Japanese company will be taking on a troubled enterprise at a time it’s struggling to convince the market about its longer-term investment vision. It’s also busy wooing potential investors for a successor to its record-breaking Vision Fund.Read more: SoftBank’s Son Is ‘Embarrassed’ By Record, Impatient to ImproveSon is going through a rocky stretch after repositioning his company from a telecommunications operator into an investment conglomerate, with stakes in scores of startups around the world. He built a personal fortune of about $14 billion with spectacularly successful bets on companies such as Alibaba Group Holding Ltd. But SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by WeWork and Uber Technologies Inc.‘s disappointing debut, grow skittish about startup valuations. In an interview with the Nikkei Business magazine, Son said he is unhappy with how far short his accomplishments to date have fallen of his goals.WeWork and Uber may be losing money now, but they will be substantially profitable in 10 years’ time, Son said in that interview. But at a private retreat for portfolio companies late last month, he had a different message: get profitable soon. At the gathering, held at the five-star Langham resort in Pasadena, California, Son also stressed the importance of good governance. Just days later, SoftBank led the ouster of WeWork’s controversial co-founder Adam Neumann.“WeWork has retained a major Wall Street financial institution to arrange a financing,” a representative for the U.S. company said in a statement on Sunday. “Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”(Updates with details of SoftBank investments from the sixth paragraph)To contact the reporters on this story: Gillian Tan in New York at firstname.lastname@example.org;Michelle F. Davis in New York at email@example.com;Davide Scigliuzzo in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Tom Giles at firstname.lastname@example.org, Edwin Chan, Virginia Van NattaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
“Fintech is not only an enabler but the driving engine,” said Pierre Gramegna, the Minister of Finance of Luxembourg. FinTech is an amalgamation of finance and technology and is fast paving a new way for the future of the financial world. It is only a matter of time when everything around us will have FinTech as its focal point.
The trade war between the U.S. and China has dragged on for more than a year and has claimed plenty of victims as traders succeed -- and often fail -- in trying to time the markets. Indeed, some investors in Alibaba (NYSE:BABA) stock have lost capital by selling their shares whenever the tariff-war tension ramps up. To me, that's not a winning strategy in the markets. As I'll soon explain, Alibaba Group is a solid investment and there's no need to dump your Alibaba stock shares at every little trade-war scare.Source: BigTunaOnline / Shutterstock.com In reality, your best bet is probably to hold on through thick and thin, and possibly even add a few more shares when the price dips. BABA Stock, By the NumbersWherever you look, you're very likely to find positive data surrounding Alibaba even amid a heated trade war. For one thing, Alibaba Group's most recently reported quarterly revenues should impress any current or prospective shareholder. In fact, the company announced a whopping 42% year-over-year increase in its revenues, and Alibaba's total revenues were revealed to be 20% greater than they were in the previous quarter. Particular highlights included a 44% revenue expansion in Alibaba's e-commerce business, as well as a massive 66% increase in the company's cloud services business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, when it comes to cash flow and enhanced shareholder value, it's hard to beat Alibaba. The company can boast an impressive $4.73 yield in earnings-per-share over the past year, which makes any debate surround the BABA stock price almost irrelevant because the shares could essentially be considered a bargain at any price (within reason, of course). * 7 Beverage Stocks to Buy Now All told, Alibaba Group grew its annual revenues from 2017 to 2019 by 56% on average, indicating that the ongoing tariff battle between the U.S. and China can't stop a good company from enhancing its bottom line. I'm expecting this growth trajectory to continue, as Alibaba serves 860 million customers and is targeting 1 billion customers for FY 2024. And I think they're even selling themselves short with that figure. The Damage Is Done, But Alibaba Group Will SurviveSuffice it to say that BABA stock holders need not be concerned about Alibaba Group's profitability, as the aforementioned numbers indicate a bright future for the company as well as the shareholders. The macro environment, however, has some BABA stock investors worried about trade concerns taking a toll on the share price.Now, it cannot be denied that the tariff war must be taken into account in today's investing landscape. Indeed, research conducted by Iowa State University's Minghao Li, Edward J. Balistreri and Wendong Zhang found that as of September, U.S. exports to major trade partners in China, Canada, Mexico and the European Union have declined; the steepest decline has been in American exports to China, which fell "by 6.4% under the tariffs accumulated as of September 2019."Of course, China's exports have declined as well, and Alibaba stock investors need to watch the ongoing developments in the international trade dispute carefully. Still, China is surviving and possibly even thriving during these challenging times, as the nation's GDP growth forecast for 2019 is 6.1% -- a strong number compared to other developed nations, including the United States. The Takeaway on Alibaba StockNo trade war in history has lasted forever, and while they're concerning in the moment, a long-term outlook can help investors ride out the turbulence. As for BABA stock, there will be whipsaws but Alibaba Group remains strong and shareholders can rest assured that patience will pay off, trade war or no trade war.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Alibaba Stock Should Stay Profitable Regardless of Trade-War Outcome appeared first on InvestorPlace.
Shares of tech companies Alibaba, JD.com, the Trade Desk, and Roku are up today. The broader indexes have also opened higher on trade talk optimism.
salesforce's (CRM) cloud solutions will help Esprit to bring its ecommerce and marketing on a single platform. Moreover, its Success Cloud advisory services will accelerate Esprit's transformation.
(Bloomberg) -- Tencent Holdings Ltd. can’t get a break.The National Basketball Association, Activision Blizzard Inc. and now one of its most important portfolio companies, Fortnite proprietor Epic Games Inc., have all sparked political controversy at a time of increasingly assertive Chinese nationalism online.A tweet by an NBA executive expressing support for Hong Kong protesters drew the ire of Beijing, throwing into question the billions Tencent has invested in the U.S. sports league. Then Blizzard, partly owned by Tencent, banned a gamer for endorsing Hong Kong’s pro-democracy movement, triggering a boycott of the company’s games for its apparent kowtowing to China. Most recently, Epic Chief Executive Officer Tim Sweeney tweeted his disagreement with the Blizzard action, eliciting calls for a boycott of its Fortnite game among Chinese players incensed by the perceived slight.At stake for Tencent are billions of dollars in ad and subscription revenue, along with its entire strategy of becoming a go-to destination for NBA broadcasts. Tencent had almost half a billion basketball aficionados tune in last season. That audience is now in jeopardy after Tencent halted game broadcasts in the wake of the Hong Kong controversy.“It’s a big wakeup call for Chinese tech companies,” said Mark Tanner, founder of Shanghai-based research and marketing company China Skinny.Tencent had just inked a $1.5 billion, five-year deal to stream NBA games online in China. Its suspension of broadcasts followed a similar move by state-backed CCTV.Tencent uses the online streams to sell ads, and the gargantuan scale of the audience drives its marketing business, which is expected to be a key driver of Tencent growth going forward. To spruce up its investment, Tencent has been developing memorabilia, entertainment shows and video games based on the NBA.“Advertising of Tencent sports will likely take a hit. NBA is the star of Tencent sports, so it could cause a contract of Tencent’s advertising growth further,” said Michael Norris, a Shanghai-based research and strategy analyst at consultancy AgencyChina.NBA China Woes Threaten Billions of Dollars, Decades’ WorkA single tweet from the Houston Rockets’ general manager supporting Hong Kong’s protesters was enough to spark a chain reaction, including an abridged history lesson by Alibaba Group Holding Ltd. Vice-Chairman Joe Tsai, majority owner of the Brooklyn Nets. Alibaba has also yanked Rockets merchandise from its online stores, causing harm to both the NBA and Alibaba’s bottom line.After initially apologizing, the league went on to express its support for staff’s freedom of political expression via a statement by Commissioner Adam Silver. That sparked another round of fury in China, threatening to prolong the clash and the blackout.The Chinese company’s shares have held up well so far, despite warnings from analysts including Citigroup’s Alicia Yap that the streaming freeze will hurt Tencent’s media ad revenue -- particularly if it extends into the regular season.But there’s more trouble ahead: Tencent’s gaming portfolio is spurring controversy too. For years, the WeChat operator took a hands-off approach with the startups and studios across its empire, reaping the benefits of importing Western content and technology for a vast Chinese market. Now the two are increasingly at odds, and Tencent is beginning to realize the downside to its passive approach.Blizzard’s stern reprimand of the pro-Hong Kong player was popular in China, but drew outrage from the U.S. to South Korea. Online, gamers called for a boycott of the company and proudly posted their cancellations.Then Epic CEO Sweeney jumped into the crossfire, explicitly giving Fortnite players the green light to discuss politics. The game maker is 40% owned by Tencent, but Sweeney is the controlling shareholder.His statement earned accolades in the U.S., but was shunned in China. “Tencent why are you not holding your dog on a leash? They are biting you in your face,” one person wrote on Weibo. Tencent spokeswoman Jane Yip didn’t respond to a request for comment.With its investments in Epic and Blizzard, Tencent has its brand on the line -- but little control.“Never have we seen this policing of China companies being extended to subsidiaries,” said Norris. “And that’s what Tencent is having to grapple with.”Over the years, Tencent and Alibaba have worked hard to remain on the good side of Beijing, with Tencent recently launching a patriotic game called Homeland Dream in time for the People’s Republic of China’s 70th anniversary celebrations. Both have also been called out by name in Senator Marco Rubio’s letter to President Trump as examples of how Chinese companies are used as tools to help “coerce American companies and American citizens to bend to Beijing’s will.”With its growing exposure to international markets and regulation, Tencent finds itself in the middle of a maelstrom of political, economic and cultural grievances. Eight Chinese companies -- two of which are backed by Alibaba -- were this week placed on a U.S. blacklist for allegedly being involved in human rights abuses of a Muslim minority in China’s Xinjiang region. That follows the Washington government’s discussion about whether to restrict pension fund investments into China.Tencent and the rest of China’s technology companies now have to consider risks they’ve never faced before.“They’re realizing they may not have as many friends as they thought they had across the Pacific,” said Tanner of China Skinny.(Updates with shares from the 11th paragraph)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad Savov, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Most investors would love to have the next Netflix (NASDAQ:NFLX) in their portfolio. But make no mistake, buying iQiyi (NASDAQ:IQ) stock is not the way to enjoy that kind of storied investment.Source: Faizal Ramli / Shutterstock.com Over the last decade -- and despite a more drawn out correction over the past year -- shares of NFLX stock have returned more than 5,000% to its long-term investors. At its best, a gain in excess of 10,000% was staring some shareholders squarely in the face. I wish I had that foresight while browsing the aisles of Blockbuster. But I'm here to plea investors to let bygones be bygones. Don't think buying IQ stock simply because it's hailed as China's Netflix is going to fix anything.To be certain, some investors will argue that while iQiyi has been likened to Netflix, its business model also includes platforms similar to Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube and privately held Twitch. And I get it, that pitch sounds even more compelling. But more importantly, IQ stock faces an uphill battle off and on the price chart.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chinese Stocks and a Rough 2019The past year of course hasn't just been painful for IQ stock. More than a few Chinese stocks like Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY) can blame the trade war with the United States as being in large part responsible for their underperformance since 2018. But iQiyi has much deeper issues. * 10 Super Boring Stocks to Buy With Super Safe Returns As original content costs skyrocket, the increasingly expensive streaming market will continue to become more challenging for iQiyi stock. It's a trend which shouldn't be dismissed. And with the company nowhere close to turning a profit -- and going through cash like water trying to make a name for itself -- that point is all the more important. And by the way, Alibaba and Tencent? Those two tech titans also happen to be very well-capitalized threats to IQ's success.Sure, bulls could try to look at IQ's impressive subscriber data and believe with roughly 93% of China's 1.4 billion population still untapped, that there's only upside for iQiyi stock price. But as InvestorPlace's Josh Enomoto eloquently discusses, it's simply not that easy.Then there's IQ stock's price chart. From a quick glance, it's easy enough to hope for a bullish resolution. But again, if the story looks to good to be true, watch out below. IQ Stock Weekly ChartIt's not fun being the bearer of bad news, but I take the responsibility seriously. It would be very easy to be bullishly appreciative of a potential triple bottom taking shape on the weekly price chart with iQiyi stock. With last week's hammer candlestick, a rally above $16.94 would confirm the pattern. You'll get no argument there. It is what it is.Still, a break of technical support could get even uglier for IQ stock as new lows are made. And this isn't only because iQiyi's stochastics are failing to hint at a bottom or that broken patterns can be powerful motivators -- especially large ones like IQ's.IQ stock, plain and simple, is highly speculative. And where the rubber meets the road, bottoming formations of this type should be reserved for stocks which have the backing of stronger fundamentals that support longevity or aren't already showing signs of stagnating growth. Again, thanks Josh.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post iQiyi Stock Is Really Not the Next Netflix appeared first on InvestorPlace.
U.S.-China trade war updates, including President Trump's tweet that helped U.S. stocks climb Thursday. A look at the ongoing fight between the NBA and China, some Q3 earnings results next week, and why marijuana stock Cronos looks like a buy - Free Lunch
Prior to the most recent dust up in U.S.-China relations, the case for Alibaba Group (NYSE:BABA) was an interesting one. After Alibaba stock peaked in the early summer 2018, shares have consistently met upside resistance. However, an apparent thaw in trade war tensions suggests a potential breakthrough. After all, a Chinese delegation was willing to meet in Washington for high-level talks.Source: testing / Shutterstock.com Now, all hope appears dashed and I'm not using any hyperbole. On Tuesday, Bloomberg News broke a startling development that the White House was "discussing blocking government pension funds from investing in China." Logically, such a measure would have serious implications for BABA stock, along with high-profile names like JD.com (NASDAQ:JD) and Baidu (NASDAQ:BIDU).And if that weren't enough, the South China Morning Post reported that the two sides have not made any progress on key trade issues. Because of this stalling in negotiations, the Chinese delegation will leave on Thursday, a day earlier than scheduled. Unsurprisingly, Dow Jones Industrial Average futures dropped 300 points following the announcement.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYou don't need to read between the lines. This is all around bad news for Alibaba stock. * 10 Best Cloud Growth Stocks Right Now Of course, the contrarians will argue that BABA stock represents great value. For one thing, Alibaba Group admittedly has great fundamentals. Profitability margins beat out most competitors in the broader retail segment. Revenue growth is very impressive. Just a few years ago, BABA racked up only $15.6 billion in annual sales. Currently, it's on pace to exceed $60 billion.Of course, Alibaba Group offers myriad innovations that bolster the longer-term narrative. But none of these things will matter for Alibaba stock in the interim with President Trump in the driver's seat. Alibaba Stock Has an Executive ProblemI'm not too sure which way most InvestorPlace readers sway when it comes to politics. But based on prior interactions, I'd guess conservative.If that's true, most of you can rejoice: I believe the evidence strongly points to President Trump winning a second term next year. But that's also bad news if you have substantial exposure to BABA stock.Now, you might be thinking, "how could Trump possibly win when he is polling so poorly?" I would counter, though, that we should note that polls aren't always accurate, as the 2016 election proved.But more importantly, I don't see the Democrats and the broader left-leaning politicians forwarding any substantive policies. Every time I turn on the news, I'm inundated with cries about Trump's alleged racism. And leading Democratic candidates like former Vice President Joe Biden have bluntly called Trump racist and divisive.What's the problem with all this? Well, people simply get tired of politicians pulling the race card to further their agendas. I agree with The Wall Street Journal op-ed writer Jason L. Riley, who bemoaned the extreme obsession with racial politics.And with the racism charge dulled, the Democrats have no solutions for real, everyday Americans. This above all else probably explains why most Americans believe Trump will win reelection, even with getting impeached.Again, that's bad news for Alibaba stock. No other president in recent memory has imposed such a tough, no-nonsense approach to China. With Alibaba Group in particular being the Asian juggernaut's flagship corporation, I don't see a positive outcome for BABA stock in the nearer term.Let's also remind ourselves that saving face is a highly revered component of Chinese culture. Right now, the Chinese are losing a lot of it thanks to Donald J. Trump. * 7 Funds to Buy If the Market Turns Sour Trump Is Doing What Must Be DoneObviously, the trade war is not a popular topic no matter who's side you're on. Small businesses that depend on warm U.S.-China relations have been disproportionately hurt. If tensions continue, all American consumers will start bearing the cost of this conflict.But what makes this situation especially awkward for stakeholders of Alibaba stock is the trade war's moral reality. If the U.S. shows any weakness here, it sends the wrong message to our adversaries: they can steal our intellectual property and stymie American interests with little penalty.President Trump cannot send that message. Especially with an election year coming up, he can't afford to disappoint his core voting base. That bodes poorly for Alibaba stock for the next 12 months. And it will get even worse if we download Trump 2.0.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Short Now -- Before They Plummet * 10 Best Cloud Growth Stocks Right Now * 5 Red-Hot Retail Stocks to Buy This Holiday Season The post Alibaba Stock May Be Stuck in a Political Bear Trap Longer Than We Think appeared first on InvestorPlace.
The cryptocurrency space is a dynamic one that has been expanding rapidly in the financial and investment sector. It is no longer just about buying Bitcoin and hoping for growth, there are also chances to get in early with Initial Coin Offerings (ICO), and more recently, Initial Exchange Offerings (IEO) . ICOs have had their […]
(Bloomberg Opinion) -- A common refrain you hear in India is, “There’s no credit in the market.” The despondence cuts across industries as diverse as real estate, autos and road construction. An 88% slump in the flow of funds to the commercial sector between April and September shows that the producers’ unease is justified. However, one credit tap is starting to gurgle, giving some cause for optimism. Pocket-sized loans are feeding online consumption, with demand coming from smaller cities and towns. The amounts are still tiny, but as digital spending grows, financing it has the power to turn the page on Indian lenders’ underwriting of soured corporate loans: the source of a $200 billion sigh of collective agony.Amazon.com Inc. and Walmart Inc.’s Flipkart Online Services Pvt claimed record sales during the recently concluded six-day online shopping bonanza that marks the start of the Indian festival season. Although nowhere close to Alibaba Group Holding Ltd.’s $31 billion Singles’ Day promotion in China, the Indian version of Black Friday has grown fivefold to $3 billion in four years, according to a review of this year’s sales by RedSeer, a consulting firm. Add the spending between now and Diwali, the Hindu festival of lights, and Forrester Research reckons the total for a month of online purchases may fall just shy of $5 billion. Although the 30% growth this year was slower than in the previous three, it’s a strong outcome in a weak economy. Both of India’s leading e-commerce marketplaces cited small towns – and credit – for their success. Flipkart says Tier 3 cities ordered 100% more goods this year. The share of transactions using credit options grew by 70%, with a majority of these people living outside of big cities. Amazon revealed that three out of four customers who availed themselves of financing came from Tier 2 and 3 cities; significantly, every second buyer who used credit did so for the first time.All this is hardly unique to India. China’s e-commerce boom saw an explosion of microloans, with millennials buying hamburgers on credit and the buy-now-pay-later habit picking up in Indonesia. What makes India interesting is the possibility that soon even physical retail will embrace digital in-store credit – minus plastic.A mobile-payment app with pay-later options at physical stores will be an important innovation. For all its expansion, e-commerce will account for only 7% of India’s $1.2 trillion retail sales by 2021, according to Deloitte. Credit cards won’t go beyond big cities and organized retail. It’s not worth any bank’s while to make card acceptance universal because the revenue to a bank from signing up a mom-and-pop shop – the merchant who handles purchases at the bottom of the income pyramid – is a meager $4 a month.That’s why Flipkart’s “cardless” credit deserves attention. Customers are validated for a $1,400 limit via a simple video upload; the actual financing comes not from Flipkart but from banks and financiers like Bajaj Finserv Ltd. This is the model that Mukesh Ambani, India’s richest man, might use to connect India’s 30 million small retailers with consumers. Amazon’s claim that its Great Indian Festival saw orders from 99.4% of the country’s postal codes owes that reach to Ambani’s aggressive entry into telecoms three years ago. The 4G network of Reliance Jio Infocomm Ltd. has caused data prices to crash and usage to explode.But Ambani won’t let the American duo of Amazon and Walmart be the biggest beneficiaries of his disruption. If Jio succeeds in taking its knowledge of 340 million Indians who use its mobile service to neighborhood stores, where most people still shop, banks and shadow banks will rush in with credit. From Citigroup Inc. to State Bank of India, HDFC Bank Ltd. to Singapore’s DBS Group Holdings Ltd., everyone will want this sizable new line of revenue at the intersection of consumer and corporate banking. Writing in the Financial Times, Viral Acharya, a former deputy governor at the Indian central bank, argues that finance in India must learn from shampoo makers such as Unilever and Procter & Gamble Co., who boosted sales by offering families affordable quantities in small sachets rather than in more expensive full-size bottles.To similarly make bite-sized finance sustainable, account aggregators are coming. They’ll digitally record a consumer’s transactions with various institutions and, with consent, share data with a lender. Given that 52% of Indian workers are self-employed, and only 23% earn a regular wage, to be able to accurately assess a borrower’s irregular cash flows will give lenders confidence to extend credit.So large is the overhang of bad corporate debt that to suggest a better model of banking will emerge invites skepticism. Yet below the surface of corporate bankruptcies and failing financial institutions, technology is enabling important change. Maybe not tomorrow, but credit will go where it is due. To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Alibaba broke out above a buy point in a cup with handle on Feb. 22, 2017. The stock would go on to rise more than 100% from the entry.
Benchmarks closed in the negative territory on Tuesday as U.S. blacklisted 28 Chinese companies and imposed visa restrictions on Chinese officials, dampening hopes on trade negotiations.
Ever since Beijing envisioned its Belt and Road Initiative (BRI) to make foreign markets more accessible to China and vice versa, it has been expanding its networks far west, including the European mainland. The BRI can be viewed as a long-cherished Chinese dream of reviving the legendary Silk Road that connected China to the Eurasian empires 2,000 years ago, by creating logistics arteries connecting China to the entirety of the world. Today, the eastern Chinese city of Yiwu announced a new freight train route to Belgium's Liege, dispatching a train loaded with 82 standard containers of commodities that is expected to reach Liege roughly 20 days from now.