|Bid||155.64 x 1100|
|Ask||155.69 x 1000|
|Day's Range||154.41 - 157.86|
|52 Week Range||129.77 - 211.70|
|Beta (3Y Monthly)||1.66|
|PE Ratio (TTM)||44.90|
|Earnings Date||Aug 21, 2019 - Aug 26, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||208.69|
How Alibaba Is Pursuing e-Commerce and Cloud Dominance(Continued from Prior Part)Alibaba shows a strong appetite for home improvement businessesAlibaba (BABA) is on track to own a substantial stake in Chinese home improvement and furnishing company
Meituan Dianping posted a narrower-than-anticipated loss after the Chinese internet services giant managed to keep Alibaba Group Holding Ltd. at bay and expand rapidly in food delivery and travel. The fast-growing company backed by WeChat-operator Tencent Holdings Ltd. posted a loss of 1.43 billion yuan ($207 million) in the March quarter compared with the 2.7 billion yuan loss that analysts projected. Billionaire founder Wang Xing held his ground in a cash-burning battle with Alibaba’s Ele.me and Fliggy for on-demand services.
Moody's Investors Service says that Alibaba Group Holding Limited's (A1 stable) fiscal year 2019 (FY2019) results (the financial results for the 12 months to 31 March 2019) were in line with Moody's expectations and will not affect the company's A1 issuer or senior unsecured ratings, or the stable outlook. "We expect that Alibaba's strong revenue growth and robust operating cash flow generation will continue to support its investment needs, and a credit profile appropriate for its A1 ratings," says Lina Choi, a Moody's Senior Vice President. Alibaba registered strong revenue growth of 50.6% year-on year, totaling RMB376.8 billion for the 12 months ended 31 March 2019.
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)Standardized QR code to simplify mobile paymentAlibaba (BABA) will work alongside Tencent (TCEHY) and several other entities in Japan to help standardize QR (quick response)
The bottom is falling out for Baidu (NASDAQ:BIDU). Baidu stock fell by almost one-quarter on Friday and Monday. Excluding a very brief dip in 2015, BIDU stock now sits at its lowest level in almost six years.Source: Shutterstock The near-term catalyst has been BIDU's disappointing first-quarter report issued on Thursday afternoon. But there's more weighing on BIDU stock than just a single earnings report. As I wrote earlier this year, there have been significant concerns about the health of its business for a long time. * 7 Safe Stocks to Buy for Anxious Investors Its Q1 results and, perhaps more importantly, its Q2 guidance, suggest those concerns are quite realistic. And so I wouldn't recommend that investors try and time the bottom of BIDU stock just yet.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Baidu's EarningsOn the surface, Baidu's earnings look modestly disappointing, but they don't seem bad enough to drive such a steep fall. Adjusted earnings per share of 41 cents did miss analysts' consensus estimate by $0.16. But its revenue growth in Chinese yuan rose 15%, in-line with the consensus outlook, and its sales actually grew 21%, excluding the divestiture of a number of its businesses last year.The earnings miss sounds disappointing, but the overall numbers don't seem terribly out of line. The company's revenue is still growing. BIDU had warned that its profits would drop in the first half of the year, partly due to higher spending on its search business.But looking more closely, two factors drove Baidu's top-line growth. The first was its ownership of iQiyi (NASDAQ:IQ), the so-called Netflix (NASDAQ:NFLX) of China. Baidu still owns roughly two-thirds of iQiyi, so IQ's results and its growth are reflected in Baidu's consolidated numbers.But Baidu's online marketing revenue, the key part of its wholly-owned business, increased just 3%. And Baidu spent an enormous sum on marketing in the quarter. SG&A, which includes marketing expenses, rose a stunning 93% year-over-year. Some of that increase was due to BIDU's efforts to support iQiyi's growth. But the operating income of Baidu's core operations plunged a stunning 67% year-over-year.Outside of iQiyi, then, Baidu essentially bought, at an expensive price, what little revenue growth it could muster. And Q2 isn't going to be much better. Baidu guided for consolidated revenue to rise just 1% to 6% excluding divestitures, representing a significant slowdown. The Baidu Stock Price PlungeSo the reaction to the earnings report does make some sense. Baidu's stake in IQ accounts for roughly 20% of its market cap; IQ shares have fallen on BIDU's results. BIDU's legacy business seems to have a significant top-line growth problem. And its increased spending is causing its profits to not only decline, but to decline sharply. BIDU stock simply has a very different fundamental profile after its earnings than it did previously.Beyond the numbers, the results confirm the fears that have dogged Baidu stock for some time. Its desktop search business is being displaced by greater use of apps, which bypass browsers and Baidu altogether. (That is also a concern for Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), to which Baidu is often compared, though Alphabet has done a better job of holding onto its business.) Baidu has added some self-inflicted wounds, including a scandal surrounding medical search results back in 2016 and complaints about its news results earlier this year.BIDU managed to come out the other side of the 2016 scandal. But its Q2 guidance, in particular, suggests a deceleration of growth to levels not seen since 2016-2017. That, in turn, implies that Baidu's brand in China has taken another hit from which it may not be as easy to recover.Outside of search, Baidu hasn't proven it can win. Its income from equity investments (which does not include iQiyi) declined 57% in Q1. Its efforts in artificial intelligence and the cloud don't appear to be moving the needle much. If Search starts to fade, it's not clear that BIDU will have an answer. Baidu Stock Doesn't Look Cheap EnoughBaidu stock looks awfully cheap on the surface. The company closed Q1 with over $18 billion in cash, excluding the funds held by iQiyi. Its stake in IQ is worth close to $10 billion. Combined, those assets support over half of the current market capitalization of BIDU stock.Based on those assets and analysts' 2019 consensus EPS estimate, it appears that Baidu stock is trading at a single-digit multiple to the profits of its core business. But it's worth noting that those EPS estimates are going to come down, and potentially sharply, in the wake of the Q1 results. BIDU stock may look cheap, but there's a wealth of evidence at the moment which suggests that it should be cheap.Meanwhile, the trade war still hangs over all Chinese stocks. But Baidu stock has badly lagged even its peers recentl. Big Chinese names like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and Tencent (OTCMKTS:TCEHY) all posted solid earnings reports last week, and their shares have risen so far this year. What happens to BIDU stock if and when investors' views on China deteriorate?The response by Baidu stock over the last two sessions is not an overreaction, or a panic, or a case of investors not paying attention. There have been real concerns about BIDU stock for some time now, and those concerns seem supported by both its Q1 results and its Q2 guidance. So it's not surprising that Baidu stock has fallen so hard. And it wouldn't be a surprise if BIDU keeps falling.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post After Earnings Miss, Baidu Stock Can Get Even Cheaper appeared first on InvestorPlace.
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)Alibaba seeking coffee delivery business from LuckinAlibaba (BABA) is in talks for a contract to deliver coffee products for Luckin Coffee (LK) customers in China, according to
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)Alibaba helping brands reach over 650 million consumers across ChinaAlibaba (BABA) finished the March quarter with 654 million active shoppers across its retail marketplaces in
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)Alibaba suffers setbacks in India investmentsAlibaba (BABA) is reviewing its India investment strategy with the goal of potentially dialing down on big-ticket investments in
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)65 million members signed in less than one yearAlibaba (BABA) is quietly running a booming health insurance side business through its Ant Financial affiliate. In October last
Investor Updates: The Latest Buzz from Alibaba(Continued from Prior Part)Ma thinks Europe is shooting itself in the footAlibaba (BABA) co-founder and outgoing executive chair, Jack Ma, has criticized Europe’s obsession with technology regulation,
Investor Updates: The Latest Buzz from AlibabaConsumers complaining about dispute settlement and product return termsAlibaba (BABA) is facing consumer complaints in Europe about the terms of a dispute settlement between shoppers and sellers on its
How Alibaba Is Pursuing e-Commerce and Cloud Dominance(Continued from Prior Part)Alibaba’s cloud revenue jumps 76%More than $180 billion is up for grabs in the global cloud computing market this year, and Alibaba (BABA) is one of the major
How Amazon and eBay Are Working to Drive Future Growth(Continued from Prior Part)eBay opens first concept store in BritainAmazon (AMZN), Alibaba (BABA), and JD.com (JD) are not the only major e-commerce companies investing in physical stores. eBay
This time around, Alibaba didn't shy away from discussing the trade war, but decided to deal with those concerns head-on. Fundamentally, Alibaba is a rapidly growing conglomerate which is hugely undervalued. Alibaba's co-founder and Executive Vice Chairman Joseph Tsai came out swinging on the earnings call last week.
How Alibaba Is Pursuing e-Commerce and Cloud Dominance(Continued from Prior Part)Alibaba takes cloud market share from Amazon in AsiaAlibaba (BABA) has taken the lead in Asia’s cloud computing market, and it now has its sights set on a global
Stock futures: The stock market rides China trade war news up and down. Qualcomm stock plunged on a U.S. antitrust court ruling.
The tariff battle between China and U.S. has become more than just talk. After President Trump raised tariffs on hundreds of billions of dollars worth of imports from China, Trump has now targeted Huawei adding it to a trade blacklist. Huawei is a big company with around $100 billion in revenue last year. The intelligence community […]
Nepal has banned popular Chinese digital payment apps WeChat Pay and AliPay saying payments from the unregistered systems were illegal and resulting in a loss of income to the Himalayan nation, a spokesman for the central bank said on Wednesday. Laxmi Prapanna Niroula, a spokesman for the Nepal Rastra Bank, said the two digital payment platforms were not registered with the regulator in Nepal but were widely used by Chinese tourists for settling their payments with businesses. "Any digital transaction made with unregistered foreign payment system like WeChat Pay and AliPay is illegal," Niroula told Reuters.