BABA - Alibaba Group Holding Limited

NYSE - NYSE Delayed Price. Currency in USD
154.84
+3.96 (+2.62%)
At close: 4:02PM EST

153.60 -1.24 (-0.80%)
Pre-Market: 8:27AM EST

Stock chart is not supported by your current browser
Previous Close150.88
Open152.81
Bid153.55 x 800
Ask153.69 x 1400
Day's Range151.50 - 155.39
52 Week Range129.77 - 211.70
Volume14,810,795
Avg. Volume19,231,330
Market Cap401.373B
Beta (3Y Monthly)1.74
PE Ratio (TTM)44.28
EPS (TTM)3.50
Earnings DateJan 30, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est202.63
Trade prices are not sourced from all markets
  • Trade War Is Still Investors Top Tail Risk for the Markets
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  • Why Fundamental Investors Might Love Alibaba Group Holding Limited (NYSE:BABA)
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  • Pinterest, Airbnb, Uber, Lyft: Big IPOs Are Coming Our Way
    InvestorPlace21 hours ago

    Pinterest, Airbnb, Uber, Lyft: Big IPOs Are Coming Our Way

    The buzz was that 2019 would be one of the biggest years for IPOs, at least in terms of the amount of capital raised. The main reason: We are likely to see a variety of tech unicorns finally hit the markets. But unfortunately, there's a big problem. The partial shutdown of the federal government has meant that there is a skeleton staff at the SEC (Securities and Exchange Commission). This means there can be no IPOs. According to US law, the federal government must approve any offer of securities to the public. Yet hopefully the shutdown will not last long and that investors will soon get a chance to invest in a myriad of hot deals. Actually, the upcoming "PAUL" offerings - which include Pinterest, Airbnb, Uber and Lyft - will likely dominate the headlines. The amounts raised will certainly be enormous. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Growth Stocks With the Future Written All Over Them OK, since there are no public filings of the S-1s, the financial data is a bit fuzzy on the PAUL deals (note that some of the filings are confidential, such as from Uber and Lyft). Yet there is still lots of information available, such as from press releases and third-party analyses, to get a sense of these companies. Here's a look: ### ### Pinterest IPO The upcoming Pinterest IPO has not seen much attention. Yet this does not mean it will be a laggard. For the most part, Pinterest has been able to put together a solid business. Unlike a typical ecommerce platform like Amazon.com (NASDAQ:AMZN) or eBay (NASDAQ:EBAY), Pinterest has made buying highly engaging. The members of the site can pin their favorite items, creating compelling boards. In fact, there are 175 billion pins! Here are some other notable metrics: * There are 250 million MAUs (monthly active users). * 50% of the traffic is outside the U.S. and 80% comes from mobile phones. * 93% of active pinners use the service to plan for purchases. So yes, monetization has been strong. For 2018, revenues are estimated to have increased by 50% to $700 million. And as for the valuation of the Pinterest IPO, it is projected at about $12 billion. ### ### Airbnb IPO Source: Shutterstock Online marketplaces can be very powerful. This is even the case if the technology is not on the cutting-edge. Hey, just look at Craigslist, which continues to be a dominant player in online classified listings. The key is to get to critical mass, in which there emerge network effects. When this happens, an online marketplace can be extremely difficult to unseat. This appears to be the case with Airbnb. The company has more than 5 million listings across over 190 countries. The business is also highly lucrative. In the latest quarter, revenues grew by more than $1 billion. It also looks as if the company has been cash-flow positive for the past two years. * 8 Dividend Stocks With Growth on the Horizon Something else to consider: The Airbnb IPO may be unconventional - that is, Airbnb could issue shares directly to the public, avoiding the high fees of investment banks. If so, this means retail investors will have a chance to snag shares at the offering price. ### ### Uber IPO Source: Uber For many startups, the founders will often be overly optimistic about their forecasts. But this was not the case with Uber. If you take a look at the original investor deck, which was created ten years ago, the estimates turned out to be too conservative. Fast forward to today: The valuation of the upcoming IPO is at about $120 billion. Granted, when it comes to such estimates, they can be far from perfect. But it seems like a pretty good bet that the Uber IPO will be one of history's largest - perhaps with a capital raise of over $12 billion. To put things into perspective, Facebook (NASDAQ:FB) raised $16 billion in its own public offering in 2012 (note that Uber has already raised $20 billion in private equity and debt financings). What about the growth rate? Well, it has actually been decelerating, but the ramp is robust, especially in light of the scale. During the latest quarter, revenues rose by 38% to $2.95 billion. The company is also seeing traction with other business segments, such as Uber Eats and the freight unit. Even though the company has had plenty of drama over the years - such as with allegations of stealing intellectual property and spying on rivals - the company's new CEO, Dara Khosrowshahi, has been swift in making changes to the culture. He certainly knows how to run large organization, as he was formerly the CEO of Expedia (NASDAQ:EXPE). ### ### Lyft IPO Source: Shutterstock Lyft recently published its review for 2018. And yes, the company has been very busy. Here are just some of the highlights: * In September, Lyft logged its one billionth ride. The company averaged 50 million rides a month for the year. * The service is now available to 95% of the US population. * The company acquired Motivate, which has become the largest bikeshare operator in North America. * Lyft launched scooters in nine cities in the US. Yet despite all the success, Lyft is still far behind rival Uber. The company's share of the U.S. ride-hailing market is 28% while Uber's is 69%. Uber also has an extensive global footprint. But the Lyft IPO should still do just fine. Keep in mind that the company continues to grow at a rapid pace. In the third quarter, revenues spiked by 88% to $563 million. * Top 10 Global Stock Ideas for 2019 From RBC Capital As for the valuation of the upcoming Lyft IPO, it is estimated at $15.1 billion (which is based on the latest valuation). The company has also raised about $5.1 billion. Some of its marquee investors include Alibaba (NYSE:BABA), General Motors (NYSE:GM), Founders Fund and Tencent. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. Compare Brokers The post Pinterest, Airbnb, Uber, Lyft: Big IPOs Are Coming Our Way appeared first on InvestorPlace.

  • 7 Stocks to Buy as the Dollar Weakens
    InvestorPlace22 hours ago

    7 Stocks to Buy as the Dollar Weakens

    The financial markets had a turbulent and volatile 2018, with many storylines and themes changing multiple times over the course of the year. But one financial market theme that remained constant through the volatility was a strong dollar. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a basket of foreign currencies, bottomed around 90 in early 2018 during global financial market turmoil. Over the rest of the year, the U.S. Dollar Index steadily gained towards the upper 90's, even amid the big selloff in late 2018. This trend has changed course over the past month. Specifically, the U.S. Dollar Index peaked around 98 in mid-December, and has since consistently fallen towards 95, its lowest level since October. Why? There's renewed optimism regarding a trade war resolution, and hope that while the global economy is slowing, it's not slowing as much as feared. Also, the Fed has grown increasingly dovish over the past few weeks, signalling fewer rate hikes than previously anticipated. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But a weaker dollar is good news for some companies, such as multinationals with significant overseas sales exposure and foreign stocks with mitigated sales exposure to the U.S. Many of these stocks were hampered by a strong dollar in 2018. But, if the dollar continues to weaken in 2019, these stocks could have room to run higher as a major headwind is removed from the equation. * 10 Growth Stocks With the Future Written All Over Them With this in mind, let's take a look at seven stocks to buy as the U.S. dollar weakens. ### Stocks to Buy as the Dollar Weakens: McDonald's (MCD) Source: Shutterstock At the top of the list is McDonald's (NYSE:MCD), the multinational food giant which not only gets a majority of its revenue and profits from international markets, but whose international operations are also more profitable and growing faster. Therefore, as the dollar weakens and those businesses start to earn more in term of U.S. dollars, MCD stock should benefit. Last year, roughly 65% of the company's total revenues and nearly 60% of total operating profits came from outside of the U.S. Moreover, comparable sales growth in the U.S. was just 3.6% last year, versus 5% and up overseas. Also, U.S. company operated margins hovered around 16% in 2017. International company operated margins were north of 17%. Overall, as goes the international business, so goes McDonald's. Thus, as the international business becomes increasingly valuable against a weakening dollar, MCD stock should naturally rise. ### Stocks to Buy as the Dollar Weakens: Alibaba (BABA) Source: Shutterstock The plunge in Chinese stocks started in early 2018, when the U.S. dollar strengthened significantly against the Chinese yuan. That strengthening diluted the value of U.S. listed Chinese stocks, and that dilution -- on top of concerns regarding weakening growth -- caused all Chinese stocks to drop in a big way. That included shares of Chinese internet giant Alibaba (NYSE:BABA). But the fundamentals underlying Alibaba remain very strong. This is still the premiere e-commerce and cloud company in a 6%-plus growth economy supported by healthy demographic trends. Despite those tailwinds, the stock now trades at a rather anemic sub-30x forward multiple (revenues grew by over 50% last quarter). * 7 Oversold Small-Cap Stocks With Massive Profit Growth All this stock needs to explode higher is a few good catalysts. One such catalyst is a weakening dollar. The other is positive progress on U.S.-China trade talks. Those two are tied together, and both are starting to move in favor of Alibaba. As such, now seems like as good a time as any for a big BABA stock around. ### Stocks to Buy as the Dollar Weakens: Baidu (BIDU) Source: Shutterstock Another Chinese stock that plunged with a strengthening U.S. dollar but is now set to rebound as the dollar weakens is Baidu (NASDAQ:BIDU). For those who are unaware, Baidu is the company behind China's leading search engine, and as such, is often called the Google (NASDAQ:GOOG) of China. As the Google of China, Baidu has established itself as the backbone of China's burgeoning internet economy. There have been some hiccups in the road, but the company has always successfully navigated around them and -- much like Google- - Baidu has found itself as a largely consistent 20%-plus revenue grower. At current levels, BIDU stock is pretty cheap with a mere 15x forward multiple. Google trades at over 20x forward earnings, and Google is growing revenues at a slower clip than Baidu. Thus, the 15x forward multiple on BIDU stock doesn't make much sense and should ultimately be corrected with a few positive catalysts. One such positive catalyst will be the weakening of the U.S. dollar. If dollar weakness persists and U.S.-China trade talks continue to make progress towards a resolution, BIDU stock could be in store for a major rally from multi-year lows. ### Stocks to Buy as the Dollar Weakens: Coca Cola (KO) Source: Coca-Cola One multinational giant that is set to benefit in a sizable way from U.S. dollar weakness is Coca Cola (NYSE:KO). Much like McDonald's, most of Coca-Cola's revenues, profits, and growth come from international markets. Specifically, last year, only ~25% of the company's revenues came from North America. Presumably, most of that was from the United States. Still, at most, the U.S. represented just about 20% of Coca-Cola's total revenues in 2017. Roughly a third of operating profits came from North America, so maybe about 25% came from the U.S. Meanwhile, volume growth in North America was flat, while it was positive in some other international geographies. * Top 10 Global Stock Ideas for 2019 From RBC Capital Broadly speaking, then, the KO growth story is one led and driven by international growth. As the dollar weakens, that international growth becomes more valuable in terms of U.S. dollars, and the entire KO growth story becomes more valuable, too. As such, dollar weakness should lead to a KO stock rally. ### Stocks to Buy as the Dollar Weakens: Netflix (NFLX) Source: Shutterstock Although this stock is often viewed as being in a different category than McDonald's and Coca Cola, streaming giant Netflix (NASDAQ:NFLX) actually shares a few prominent parallels with the aforementioned consumer staples giants. Namely, all three are international driven growth stories that benefit from a weaker dollar. Netflix is still growing by leaps and bounds in the U.S. But, the majority of the growth is happening outside of the U.S. Last quarter, the U.S. streaming business grew revenues by 25% with just over 1 million net ads. In contrast, the international streaming business grew revenues by nearly 50% with almost 6 million net ads. Also, when investors and analysts talk about how big Netflix can be, those discussions almost entirely revolve around the international market, since the consensus belief is that the U.S. market is nearing saturation. Overall, Netflix is a multinational giant with an international driven growth story. As such, this company and stock are winners when the dollar weakens. ### Stocks to Buy as the Dollar Weakens: Tesla (TSLA) Source: Tesla When talking about growth giants with international driven growth stories, streaming giant Netflix and electric vehicle pioneer Tesla (NASDAQ:TSLA) fall into the same boat. Tesla had a breakthrough back half of 2018 as the company achieved a sizable profit for the first time in several years -- and did so while accelerating Model 3 production and delivery to mainstream levels. But all those positive developments happened almost entirely on the domestic front. The Model 3 has yet to really scratch the surface internationally. * 5 Fallen-Angel Stocks That Have Been Oversold That will change in 2019. One of Tesla's biggest focus is producing and delivering Model 3 vehicles all around the world this year. As the company does this, the TSLA growth narrative will become increasingly internationally driven. The more internationally driven this growth narrative becomes, the more a weak dollar will help TSLA stock. ### Stocks to Buy as the Dollar Weakens: Weibo (WB) Source: Shutterstock Back to the list of Chinese stocks to buy before they benefit from a weaker dollar. There is a lesser known but just as compelling Chinese stock: social-media giant Weibo (NASDAQ:WB). Many investors and analysts like to call Weibo the Twitter (NYSE:TWTR) of China, given overlaps in the companies' core social media platforms. Those comparisons make sense. But, Weibo is much bigger (nearly 450 million monthly active users versus under 330 million at Twitter). Weibo is also growing more quickly (44% revenue growth last quarter, versus 29% at Twitter), and is more profitable (42% adjusted EBITDA margins last quarter, versus 39% at Twitter). Despite Weibo being bigger, faster growing, and more profitable, Twitter stock is deemed more valuable and expensive by the market. Weibo has a $12 billion market cap. Twitter is valued at essentially twice that. Weibo stock trades at 17 forward earnings. Twitter's forward multiple is above 35. Overall, Weibo stock is just way too cheap to ignore here. And all it will take for a rip-your-face-off rally is a few positive catalysts. A weakening U.S. dollar is one. Positive trade talks is another. Stabilizing economic growth in China is a third. If all those boxes get checked off, this stock could soar in a big way. As of this writing, Luke Lango was long BIDU, GOOG, NFLX, TSLA, WB, and TWTR. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 7 Stocks to Buy as the Dollar Weakens appeared first on InvestorPlace.

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    Alibaba, Baidu among Chinese tech stocks trading higher after Beijing announces economic-growth efforts

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  • Tencent's WeChat Evolves Into a Virtual Assistant
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  • InvestorPlace2 days ago

    Investors Are Wrong To Think Of Alibaba As An Amazon Analog

    Alibaba Group Holding (NYSE:BABA) has never been Amazon.Com (NASDAQ:AMZN). It wasn't founded to sell consumer goods. Its cloud isn't challenging Amazon in infrastructure. And in the past six months, BABA stock has suffered a drop about two times that seen by AMZN shares. Instead of selling raw infrastructure, Alibaba is developing software services that let companies design products for specific markets and get them through distribution channels. That's the strategy that led them recently to buy Data Artisans, a Berlin-based software company, for $103 million. Data Artisans dominates in the development of Apache Flink, an open source data processing system. So, while Amazon sells infrastructure, and Microsoft (NASDAQ:MSFT) sells a platform, in other words, Alibaba has gone up the stack, like Adobe (NASDAQ:ADBE), selling a unique solution. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Leveraging Cheap Tech Workers The result of Alibaba going up the stack doesn't just cut its retailers' costs and make them competitive. It also supports Chinese goods exports, and raises the value of all of Alibaba's cloud offerings, allowing it to enter western markets, starting in Europe. The costs are higher, but so are the margins. About 40% of Alibaba's 50,000 employees are tech workers. Thanks to the bear market in tech, and the China trade war, they can now get into this cheap. ### All Eyes on Earnings Alibaba is expected to earn $1.38 per share on revenue of $17.25 billion when it reports earnings on January 30. That would bring total revenue for the last four quarters to over $52 billion, against a market cap of $390 billion when the market opened January 11. * 10 A-Rated Stocks the Smart Money Is Piling Into Like the other cloud czars, including Amazon, BABA stock has had a terrible six months, the shares dropping by about a third from a high of $206 to a low of $139 per share, closing yesterday below $150. With about $3.45 per share in earnings expected for the calendar year, that's a price to earnings ratio of 43, against Amazon's 92, and Alibaba is a higher-margin operator. The China trade war, along with rhetoric from Washington and New York about the "Chinese Communists" (executive chairman Jack Ma admits he is a party member), has helped push Alibaba's price down. But China isn't any more communist today than many other countries. It's a party-run dictatorship, but so are our "friends" in Russia and Saudi Arabia. Alibaba's home market is still growing faster than the U.S., and it has been more successful than other Chinese software companies in selling services outside its home market. Alibaba Cloud now has 55 availability zones across 19 regions , including two in the U.S. ### Get It at a Discount? If you don't trust China and you don't like Alibaba's price, you can actually get it at a discount by buying Altaba (NASDAQ:AABA), the former Yahoo. Its primary asset is a holding of 383 million Alibaba shares, worth about $57 billion on the open market, but Altaba itself has a market cap of just $38 billion. Since it's selling out of Yahoo Japan (OTCMKTS:YAHOY) it's even more of a pure play on Alibaba stock. * 10 Stocks You Can Set and Forget (Even In This Market) My problem is this only gives you Alibaba stock second-hand (just like some of the items on AliExpress). Altaba has no income, and you're stuck waiting for its board to monetize the stake for you. But they do have 15% of Alibaba's common, and if Alibaba wants them out, they'll have to pay a premium to achieve that. ### The Bottom Line on BABA Stock Alibaba today is a unique value proposition. It's not the Chinese Amazon. It's not even a "Cloud Czar" in the way of Amazon and Microsoft. And it'd be wrong to look at BABA stock as you would be shares of those others. Alibaba is what it has always been, a software company dedicated to moving markets from the 19th to the 21st century. Like Amazon, it uses distribution and retailing for the financial scale needed to grow, and as a demonstration of what its cloud does. Beyond that, it's something completely different -- just like Alibaba stock. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA, MSFT and AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Investors Are Wrong To Think Of Alibaba As An Amazon Analog appeared first on InvestorPlace.

  • CNBC3 days ago

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    Alibaba dips after the company's president warns 'China has slowed down'

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  • Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities
    InvestorPlace3 days ago

    Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities

    Calling the past few months challenging ones for owners of Weibo (NASDAQ:WB) stock is a considerable understatement. They've been miserable. Weibo stock price has been more than cut in half since February's high, and while a broad rout of most high-profile Chinese stocks like Alibaba Group Holding (NYSE:BABA) and Baidu (NASDAQ:BIDU) was the driving force of the selloff, that's of little solace to owners of Weibo stock. Some green shoots are starting to push through for many Chinese names, however. And, with solid fundamentals already (or still) in place for the company, Weibo stock looks better positioned than any of its peers to lead the recovery effort. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks the Smart Money Is Piling Into But there's one huge technical hurdle ahead for WB stock that will make or break the budding rebound. ### What's Weibo? WB is often called the Twitter (NYSE:TWTR) of China, and though the characterization isn't off-base, it's not entirely complete. With more bells, whistles and opportunities to personalize user interfaces than Twitter, Weibo is also a great deal like Facebook (NASDAQ:FB). Arguably, Weibo is a hybrid of the Western world's two most popular social-networking sites. And, much like Facebook and Twitter, the young-ish platform is experiencing tremendous revenue and profit growth. Last quarter's top line grew 48% year-over-year, to $409 million, and its user base expanded by 19%. Both figures extended long-standing uptrends that analysts believe will persist for the foreseeable future. The upward revenue and earnings trajectory, however, have done little to prevent the decline of Weibo stock price. Blame nervous investors. More driven by presumption than facts at the time, investors feared that new tariffs imposed by President Trump on China would cause the country's already-fragile economy to outright implode. It did end up running into a headwind, but it turned out to be manageable. And Weibo, whose appeal has been enhanced by its relative newness, has been able to grow regardless of China's macro environment. Investors' misperceptions about China in general and Weibo stock in particular are beginning to be corrected. But WB stock needs one more good shove to kick off what should become a self-sustaining rally. That catalyst is well within reach. ### The Chart of WB Stock Price The chart of Weibo stock, at first glance, appears to be ugly. WB stock price peaked near $140 in February, and by October, it was trading near $53. Since then, however, subtle but important bullish clues have materialized. One of them is the development of a horizontal support level just above $53, which has led to the first higher lows in nearly a year. That horizontal floor has also allowed Weibo stock to punch through a pair of falling resistance lines that had pushed the shares lower for at least part of the multi-month setback. There's one more ceiling to clear, however, before the tide turns more in favor of the WB stock price than not. That is the 100-day moving average (depicted by the purple line on the chart below), which stamped out the breakout effort that emerged in early December. That thrust didn't start in the best of circumstances. At the time, the stock market was poised to embark on a major correction, and China's future was still in question. The majority of China's most familiar stocks were far from ready to recover, leaving Weibo at a major disadvantage. Never even mind the big gap left behind by an overheated, one-day gain of Weibo stock. Matters have changed dramatically since then, setting the stage for what could be a dramatic rebound rally of WB stock that may well lead other Chinese names out of similar funks. ### One Final Word on Weibo Stock While not overwhelmingly bearish towards WB stock, the financial advice and news industry hasn't exactly been fond of Weibo lately. Morgan Stanley downgraded WB stock on Tuesday, and though no scathing commentaries have been penned about the company in recent weeks, few have been bullish either. Take it all with a grain of salt. News coverage has been more reactive than proactive in recent weeks, with analysts and the media chasing trends rather than leading or causing them. To that end, if Weibo stock can just push past its technical hump, don't be surprised to then see the headlines about it take a decidedly more optimistic tone. That, of course, will fan any bullish flames if and when they materialize. Weibo stock just has to clear that 100-day moving average line first. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities appeared first on InvestorPlace.

  • Alibaba taps Kabbage to loan up to $150K to SMBs after it quietly acquired OpenSky to ramp in North America
    TechCrunch3 days ago

    Alibaba taps Kabbage to loan up to $150K to SMBs after it quietly acquired OpenSky to ramp in North America

    Alibaba's long-term ambition to grow its business in the U.S. is taking another step forward. To increase sales to U.S. small businesses, the company has partnered with Kabbage, the SoftBank-backed unicorn that provides loans to SMBs using big data and machine learning to determine eligibility faster than a traditional bank lender, to provide up to $150,000 of financing at the point of sale on Alibaba.com as part of a new program called Pay Later. The move comes on the heels of an interesting, if slightly older, piece of news: Alibaba quietly made an acquisition in the U.S. last year to further its interests in the country as it continues to face-off with homegrown competition, with Amazon leading the charge.

  • Are President Trump and the US Losing the Trade War with China?
    Market Realist3 days ago

    Are President Trump and the US Losing the Trade War with China?

    Are President Trump and the US Losing the Trade War with China? ## The market After seeing a massive sell-off in the fourth quarter of 2018, the broader market has managed to remain in positive territory in January so far. Investors’ high expectations resulting from US-China trade talks and the Fed’s more dovish tone could be driving these gains. Last week, the S&P 500 Index (SPY), the NASDAQ Composite Index (QQQ), and the Dow Jones Industrial Average rose 2.5%, 3.5%, and 2.4%, respectively. However, these indexes are in negative territory today. Let’s take a look. ## China’s surplus with the United States According to a recent Reuters report, “China’s trade surplus with the United States rose to $323.32 billion last year, the highest on record going back to 2006.” The amount was based on a customs data calculation done by Reuters, and it was 17.2% higher than China’s trade surplus of $275.81 billion with the United States in 2017. The report also added that China’s exports to the United States had registered an 11.3% year-over-year increase in 2018, while its imports had inched up 0.7% in the year. ## Trump’s trade war In the last couple of quarters, US-China trade relations have seen several ups and downs. The trade war between the world’s two largest economies, which was triggered by President Donald Trump, has taken a toll on investors’ sentiments. Large US companies General Motors (GM), Ford Motor Company (F), Apple (AAPL), and Tesla (TSLA) have warned investors about the negative impact of the trade war on their businesses. Earlier this month, Apple cut its fiscal 2019 first-quarter guidance, citing weakening Chinese sales due to China’s economic slowdown. The company also cited the US-China trade war as one of the reasons for its slowing sales in China. The trade war doesn’t seem to have benefited either China or the United States so far. Investors will likely remain on the lookout for any positive updates on US-China trade relations. In the fourth quarter of 2018, US companies General Motors, Ford, Apple, Netflix (NFLX), Microsoft (MSFT), Amazon (AMZN), and Qualcomm (QCOM) fell ~0.7%, 17.3%, 30.1%, 28.5%, 11.2%, 25.0%, and 21.0%, respectively. During the same quarter, Chinese companies Alibaba (BABA), Baidu (BIDU), and NIO (NIO) fell 16.8%, 30.6%, and 8.7%, respectively.

  • Facebook Boosted Share Repurchase Program
    Market Realist3 days ago

    Facebook Boosted Share Repurchase Program

    Key Questions as Facebook Gets Ready to Report Q4 Results (Continued from Prior Part) ## A $24 billion repurchase authorization As Facebook (FB) prepares to report its earnings for the fourth quarter of 2018, we note that the company last month boosted its share repurchase program by an additional $9.0 billion. The increase brings the company’s repurchase authorization since 2017 to $24 billion, considering that in April 2018 Facebook added $9.0 billion to its repurchase program, which already had a $6.0 billion authorization. Facebook had $3.5 billion remaining in its previous repurchase authorization at the end of September 2018, according to the company’s regulatory filing. Therefore, the latest addition means that Facebook now has $12.5 billion in its repurchase program. ## Companies have lined up fat repurchase programs Besides Facebook, other Internet companies that have lined up fat repurchase programs include Google parent Alphabet (GOOGL), Alibaba (BABA), and eBay (EBAY). In February last year, Alphabet announced an $8.6 billion repurchase program, and Alibaba is in the process of implementing its $6.0 billion two-year repurchase program. eBay had $4.7 billion remaining in its existing repurchase authorization at the end of September. JD.com (JD) recently announced a $1.0 billion repurchase program expiring in 2020. ## Repurchasing 86 million shares With $12.5 billion and the stock trading in the $145 range, Facebook could repurchase more than 86 million shares, or 3.0% of its outstanding shares. Since repurchases reduce the number of shares in circulation, they can lead to companies posting higher earnings per share without actually growing profits. Continue to Next Part Browse this series on Market Realist: * Part 1 - Did Facebook’s Revenue Continue to Grow in Q4? * Part 2 - Did Facebook’s Profitability Improve in Q4? * Part 3 - How Facebook’s Advertising Base Is Trending

  • Facebook Is Being Sued Over Its Portal Brand
    Market Realist3 days ago

    Facebook Is Being Sued Over Its Portal Brand

    The Latest News from Facebook: Can It Rise Over 20% in 2019? (Continued from Prior Part) ## Startup claims trademark infringement According to Reuters, Facebook (FB) has been hit with a trademark infringement lawsuit over its use of the Portal brand. The lawsuit was filed in Manhattan by a New York startup called Mass Lab, which built a video-sharing app called Portal. In October 2018, Facebook launched a hardware product called Portal, which it’s promoting as a video-calling device. Portal is available in two versions with a starting price of $200. The high-end version costs $350. In addition to making video calls, owners of Portal can use it to stream music from providers such as Pandora (P) and Spotify (SPOT). ## A $23.3 billion revenue opportunity With Portal, Facebook is viewed as pursuing revenue in the smart speaker market, which Allied Market Research estimates will be worth more than $23.3 billion by 2025. The market was estimated to be worth $4.4 billion in 2017. Besides Facebook, the other companies pursuing smart speaker revenue are Amazon (AMZN), Google (GOOGL), Alibaba (BABA), and Baidu (BIDU). Amazon is currently the world’s top smart speaker company, holding a 31.6% share of the market in the third quarter of 2018, according to data from Strategy Analytics. Google, Alibaba, and Baidu held shares of 22.7%, 9.5%, and 8.4%, respectively, in the global smart speaker market in the third quarter. ## Portal opens up another source of revenue In addition to being an extra source of revenue, Portal is also viewed as important to Facebook’s efforts to diversify its revenue sources, as the company currently depends on advertising for the vast majority of its revenue. The trademark infringement lawsuit could affect Facebook’s plans for Portal, so it will be interesting to see how the company handles the dispute. Continue to Next Part Browse this series on Market Realist: * Part 1 - Did Facebook Break Vietnam’s Cybersecurity Law? * Part 2 - Why the Vietnamese Market Is Important for Facebook * Part 3 - A Look at Facebook’s Efforts to Avoid Controversies

  • Alibaba Acquires Open Source Firm Data Artisans for $130M
    Zacks3 days ago

    Alibaba Acquires Open Source Firm Data Artisans for $130M

    Reportedly, Alibaba (BABA) acquires an open source company, Data Artisans, for a total of ???90 million ($103 million).

  • TheStreet.com3 days ago

    CES Takeaways for AMD and Intel, Alibaba and JD.com and Augmented Reality

    reiterated that PCs containing CPUs relying on its delayed 10-nanometer (10nm) manufacturing process will be available in volume during the 2019 holiday season. The company also signaled that the 10nm CPUs arriving this year, which are based on a new microarchitecture called Ice Lake, will target thin-and-light notebooks and convertibles. For its part, just before CES, AMD unveiled second-gen Ryzen Mobile notebook processors that rely on a 12nm manufacturing process.