|Bid||33.79 x 1800|
|Ask||34.00 x 900|
|Day's Range||33.94 - 34.74|
|52 Week Range||19.26 - 35.43|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||231.29|
|Earnings Date||Feb 26, 2020 - Mar 2, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||39.83|
U.S. consumers spent approximately $57.5 billion dollars between November 1st to November 28th, according to Adobe Analytics. Meanwhile on Thanksgiving Day alone, consumers are expected to have spent $4.4 billion dollars by the end of the day. Erin Sykes, Retail and Sales Strategy Expert, Consultant, and QVC Guest Host, joins Yahoo Finance's The Ticker to discuss.
JD.com’s stock dipped despite the company’s strong earnings for the quarter. Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss on The Ticker.
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
(Bloomberg) -- Only a few days after Nintendo Co.’s Switch made its long-anticipated entry into China, one analyst is making a bullish case for Mario and Zelda’s prospects in the world’s biggest gaming arena.Nintendo could sell as many as four million Switch units in China in the fiscal year ending March and 12 million units of software, London-based tech equity researcher Pelham Smithers wrote in a note to clients. That could add as much as 23 billion yen ($212 million) to the Kyoto-based company’s full-year operating profit, Smithers said.Nintendo and its local partner Tencent Holdings Ltd. began selling the Switch console in China on Dec. 10, a move that has excited Nintendo investors hopeful of tapping a new market. But the optimism has been tampered by the historically lackluster performance of Sony Corp.’s PlayStation and Microsoft Corp.’s Xbox consoles, which have had several years to crack the market where smartphones are the dominant gaming platform. Video game giants are also hampered by Beijing’s insistence on vetting all games, which limits the library available to fans and slows new releases. At launch, the Switch only had one state-approved game to play.“While the history of the game console in China is not a happy one, lack of success is not necessarily down to lack of interest on the part of the consumer,” Smithers wrote in the report. “After all: if China’s consumers didn’t play console video games, the authorities wouldn’t have bothered banning them in the first place.”Key Insights:Switch hardware sales in China may range between 2 million and 4 million units in fiscal 2019 and between 3 million and 6 million the following year. Software sales will range between 6 million and 12 million in the current period and 15 million and 30 million in the period ending March 2021.China could contribute between 11.6 billion yen and 23.1 billion yen to Nintendo’s operating profit this year and 27.8 billion to 55.6 billion yen in the next.Smithers forecasts a ratio of three game purchases for each hardware unit sold in both years.He also assumes Tencent takes a 30% share of software sales income, while all of the hardware revenue goes to Nintendo, and that the two companies split the marketing costs.Nintendo’s sales in China may be capped by the company’s unwillingness to significantly increase production volume of the console and risk building up unsold inventory.Nintendo’s signature device is selling for 2,099 yuan ($298), about the same as elsewhere around the world. Mario Kart 8 Deluxe, Mario Odyssey and Super Mario Bros. U Deluxe have been green-lit by the government. Nintendo is also preparing to introduce the Switch Lite -- a cheaper version of the console intended to boost the device’s mainstream appeal -- to China at a future date, development partner Tencent said in a social media post last week.Sales of the Switch might have topped 50,000 units on launch day, according to market researcher Niko Partners, which gathers data from online retailers. Some 20,000 units were sold via JD.com and another 10,000 through TMall, it said in a report. Niko Partners forecasts the sales will reach 100,000 units by the end of the year, far below the 1 to 2 million estimated by Smithers.This isn’t Nintendo’s first attempt to crack the market. Official console sales in China remain a fraction of the overall gaming arena, as region locks and delayed hardware releases push gamers toward imported options. Nintendo confronted similar challenges in attempts to enter China dating back to 2003. It tried to sell, via a joint venture, its Game Boy Advance, Nintendo 3DS and a peculiar China-only portable console called iQue Player. Rampant piracy and slow game launches made those products unappealing.Elsewhere, Nintendo’s Switch retains its popularity three years after its launch, in an industry where consoles are often revamped every half-decade or so. The company has so far stuck with a conservative outlook for 18 million Switch units this fiscal year. Smithers thinks full-year sales outside of China could range between 20 and 21 million.Read more: Nintendo Will Prove the Switch’s Longevity This Holiday SeasonThe company’s shares have climbed more than 50% this year on the anticipation of the Switch’s China debut, the release of a smartphone edition of the Mario Kart franchise and the launch of the cheaper Switch Lite. Nintendo is likely to revise upwards its full-year earnings forecasts when it reports results in January, which could tempt some investors to sell and lock in gains, Smithers wrote.“Even if it doesn’t, this quarter’s figures should impress,” he said.\--With assistance from Zheping Huang.To contact the reporter on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Vlad Savov, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Following President Donald Trump's recent declaration that he may wait to finalize a U.S.-China trade deal, stock markets are off to a volatile start in December. As investors wonder whether China-based stocks might be adversely affected by the president's statement for the rest of the month, this column will analyze the short- and long-term outlook of JD.com (NASDAQ:JD) stock, China's largest e-commerce company by revenue.Source: Michael Vi / Shutterstock.com In 2019, JD stock is up about 57%. Needless to say, JD.com has been hot this year, but in the short-run, the share price could drop due to profit-taking. JD.com's Q3 EarningsOn Nov. 15, JD.com released strong Q3 results, beating expectations from top to bottom. Its net revenue rose 29% year-over-year to $18.9 billion. Its earnings per share was 29 cents, versus analysts' average estimate of 17 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts income from operations was $695.8 million, compared to a loss from operations a year ago.JD.com's YoY user growth accelerated last quarter, while its mobile user count surged 36% YoY. * 7 Hot Stocks for 2020's Big Trends Its monthly active mobile users increased 36% YoY in September. The owners of JD stock cheered the results. JD.com has a robust business model and is poised to benefit from the expanding Chinese e-commerce market. The company has about a 25% share of the nation's online retail market.JD.com also has hundreds of warehouses and thousands of delivery stations as well as fresh food stores across China. JD Logistics' revenue grew over 75% YoY in Q3. JD.com claims that approximately 90% of the unit's orders are delivered the same day or the next day. JD.com's E-commerce Strength Will Propel JD Stock HigherIn addition to being one of China's most valuable enterprises, JD.com is a member of the Fortune Global 500.Online shopping represents about 35% of China's $5.5 trillion retail market. By comparison, e-commerce in the U.S. represents about 11% of the nation's total retail sales.According to recent research by the China Center for Economic Research, "the most popular products sold online at JD are cell phones, followed by food and beverages, makeup and cosmetics, digital products, and lifestyle and travel goods."Mobile device users are still a driving force of consumer spending. China has the most mobile users in the world. And the mobile market is expected to grow further as China's cellular infrastructure improves.Although China's economy may slow further in 2020, China's GDP is still expanding at an average annual rate of at least 6%. Over the longer term, China is likely to overtake the U.S. as the world's number one economy.China's unemployment rate dropped to an all-time low of 3.6% in 2019. And average wage increases have been high enough to improve consumer sentiment. In other words, the country's growing middle class will continue to drive increases in consumer spending and the expansion of China's e-commerce market.And when Chinese citizens have more money in their pockets, they can spend more on online shopping sites like JD.com, which has already become an internet juggernaut. Short-Term Headwinds for JD.comAlthough it is hard to quantify the exact effect of continued trade wars on JD.com, the uncertainty they create will likely make JD stock more volatile in the short-run.As the economy cools off, the owners of JD.com stock will also pay more attention to JD's competitors. JD's main competitor is Alibaba (NYSE:BABA), whose Tmall and Taobao platforms are China's largest online business-to-consumer and consumer-to-consumer marketplaces, respectively.In the past few years, new players have entered the internet commerce marketplace in China. One example is Pinduoduo (NASDAQ:PDD), a Groupon (NASDAQ:GRPN)-style retailer, which launched its IPO in 2018.One of the main criticisms of JD.com by analysts over the years has been JD stock's low margins. For example, throughout 2018, JD's revenue growth slowed and its operating margins dropped. If the Chinese economy slows further, JD's growth metrics could also slow. Additionally, more companies are likely to enter the lucrative, growing Chinese e-commerce sector.Finally, political instability in Hong Kong could also negatively affect JD.com. Analyzing the Movements of JD StockJD stock has been volatile over the years. It shot up from $20 in 2014 to $50 in early 2018. Then things went downhill. In Nov. 2018, JD.com hit $19.21.Throughout 2019, the shares have recovered as the company's quarterly profits and revenue growth have improved.On Nov. 15, 2019, JD.com stock hit a 52-week high of $35.43. Currently, the stock is hovering around $33.Because of the impressive jump of JD.com over the last year, its technical indicators have become somewhat over-extended.But if you already own JD stock, you might want to stay the course and hold onto your position. Or you may also consider opening a covered call position in conjunction with buying JD stock.If you do not currently own shares of JD.com, there will likely be opportunities to pick up the stock more cheaply.However, if the U.S. and China reach a trade deal soon, JD.com, along with many Chinese stocks, are likely to rally. The Bottom Line on JD.com StockAlthough JD stock has been a strong performer in 2019, its price is still considerably lower than its all-time highs of January 2018.Since JD.com stock is a growth name, it trades on forward sales as well as the momentum provided by future expectations. The markets are likely to continue to be choppy in the next few weeks, especially since investors may decide to take profits as the year ends.The volatility of JD stock is high, giving it a broad trading range, so short-term traders should be cautious about buying the shares in coming weeks.However, long-term investors shouldn't scramble for the exits just yet. JD stock and many of the other Chinese companies listed on U.S. exchanges enable investors to benefit from the growing spending of Chinese consumers.Because of the hugeness of the Chinese market, many Chinese e-commerce companies can thrive. And there are plenty of long-term catalysts that could drive JD.com higher in the years ahead.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post JD.com Stock May Be Volatile for the Rest of the Month appeared first on InvestorPlace.
Moody's Investors Service has assigned a Baa2 senior unsecured rating to the proposed USD notes to be issued by JD.com, Inc. (Baa2 positive). Moody's expects the notes will have limited impact on JD.com's net cash position and debt leverage, given the company's track record of solid profitability and growing operating cash flow. Moody's expects JD.com's planned capital spending and investments will be adequately covered by its cash reserves and estimated operating cash flow of around RMB20 billion-RMB25 billion ($2.9 billion-$3.6 billion) over the next 12 months.
(Bloomberg) -- Alibaba Group Holding Ltd.’s landmark $11 billion share sale and listing in Hong Kong on Nov. 26 was galvanized by expectations the Chinese e-commerce giant will attract a vast pool of capital from its home country. But some investors caution against unrealistic expectations, especially by mainland investors, and highlight certain restrictions that still govern -- and potentially curtail -- trading activity in Alibaba’s Hong Kong shares.The company’s sheer size and the unprecedented nature of its secondary listing (the primary listing is still in New York) and unique management structure present challenges for investors hoping to gauge everything from Alibaba’s inclusion in indexes -- crucial because they direct the flow of capital from tracker funds -- to its listing status.Here’s what we know.1\. Will Alibaba get added to the Hang Seng Index?Not right now. Alibaba will be added to Hang Seng Composite Index on Dec. 9, but it isn’t qualified to join the benchmark Hang Seng Index or the Hang Seng China Enterprise Index because they comprise only primary listings and corporations without so-called weighted voting rights (WVR).Membership of the 50-member Hang Seng is coveted by corporations because it could trigger billions of dollars of inflows from funds tracking the 50-year-old gauge. Hang Seng Indexes Co. plans a consultation in the first quarter to discuss issues including whether firms with weighted voting rights, like Alibaba, should be eligible for the HSI. Any conclusions should be published by May, Daniel Wong, its head of research and analytics, said in a statement. Even if the index compiler decides to overhaul its rules, the required process means it may not be until late 2020 before Alibaba could join the major Hang Seng benchmarks.Representatives for HKEx and Alibaba declined to comment.Read more: Why Now, and Why Hong Kong, for Alibaba’s Share Sale?: QuickTake2\. Will Alibaba be included in the stock connect program?Maybe, but a lot hinges on policy makers. China doesn’t spell out criteria or qualifications for joining the program, which allows mainland investors to buy stocks listed in Hong Kong. Unlike the HSI, the program isn’t limited to primary listings. It does require review by the China Securities Regulatory Commission, the stock market watchdog.The first companies in stock connect with weighted voting rights were Meituan Dianping and Xiaomi Corp., which mainland investors got access to in late October through the program. That’s after similarly structured Chinese firms started listing in July on Shanghai’s new tech-focused Star board. Many investors expect Beijing to ultimately allow Alibaba’s Hong Kong shares to trade through the stock link with the city as well.But it may not necessarily be in China’s best interest to do so. That’s because other U.S.-listed Chinese firms -- among the country’s largest corporations, from JD.com Inc. to Baidu Inc. -- may be encouraged to follow in Alibaba’s footsteps and conduct their own secondary listings in Hong Kong, bypassing the Shanghai or Shenzhen bourses. That may run counter to Beijing’s longstanding ambitions of developing healthy, vibrant mainland exchanges, particularly as unrest grips Hong Kong.3\. Can Alibaba change its primary listing to Hong Kong?It’s possible -- thereby attracting investors with a preference for main listings, and at the same time scoring brownie points with some in Beijing who could view that as supporting China’s policy ambitions. Alibaba was given the green light to list in Hong Kong based on a new “Secondary Listing” rule, or Chapter 19C. It allows companies to conduct follow-on share offerings without complying with more stringent rules laid down by Hong Kong Exchanges & Clearing Ltd. governing first-time listees.Alibaba may enjoy special status in having more freedom to comply with Hong Kong listing requirements. Under rules laid out in a consultation paper in April last year, Chinese firms that went public before Dec. 15, 2017 don’t need to comply with “WVR” safeguards if they later switch their primary listing to Hong Kong. Alibaba, which debuted in New York in 2014, said in its Hong Kong listing prospectus it’s a “WVR” company similar to Meituan and Xiaomi.Meanwhile, Alibaba employs a fairly unique structure in which a group of partners have the right to nominate a majority of the firm’s board -- exerting outsized influence on Alibaba’s direction.In addition, Hong Kong listing rules say if trading volume there exceeds 55% of global turnover over an entire fiscal year, the stock has to adopt primary listing status in Hong Kong. HKEx gives such Chinese companies a year to comply. But with Hong Kong’s stock registration office listing just 23% of outstanding Alibaba shares as of Nov. 28, a majority of trading volume occurring there may be a tall order.\--With assistance from Paul Geitner and Fox Hu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin Chan, Kevin KingsburyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted […]
(Bloomberg Opinion) -- Has the golden age of asset management finally arrived in Asia? For years, Asia’s hottest unicorns left their homelands to list in New York for one simple reason: a deep pool of U.S. money. And they have been rewarded. From Alibaba Group Holding Ltd. to JD.com Inc., more than a dozen Chinese companies listed there have a market capitalization of $10 billion or more. But Alibaba’s Hong Kong listing may be changing things. The e-commerce giant raised about $11 billion in the city’s largest issuance of stock since 2010, with about one-third of the tranche taken up by mainland Chinese fund managers. Other regional buyers were enthusiastic, too. Taiwan’s life insurer Fubon Financial Holding Co., for instance, placed a $500 million order.This all goes to show that Asian investors are just as wealthy and eager as those in New York, which could go a long way toward making Hong Kong and Singapore more attractive listing venues. The region’s aging savers have amassed more than $10 trillion of wealth in the form of pension funds, mutual funds and insurance policies, HSBC Holdings Plc estimates.(1) With billions to deploy, Taiwan’s insurers and China’s mutual funds may find benefits to trading stocks in their own time zone, if only for their portfolio managers’ work-life balance. Asia’s bustling IPO market also bodes well for the region’s restless unicorns, whose listing window in the U.S. is closing fast after a series of high-profile flops. If Americans can’t stomach Uber Technologies Inc., how will they have an appetite for Southeast Asian clones like Grab or Go-Jek? To make matters worse, U.S. investors have been pulling money out of emerging markets over the past several months. The MSCI Emerging Markets Index peaked in January 2018, while the S&P 500 Index continues to hit daily records.There's one major caveat, however. Local investors can be a tough sell. Foreign money managers tend to think of Asia's biggest startups as a proxy for the macro scene, much in the same way that New York investors saw Alibaba as a bet on China's rising consumer class. Domestic players, on the other hand, are living and breathing the macro picture, so they’re concerned primarily with company metrics. If you’re sitting in Jakarta traffic, you’re acutely aware of the challenges a ride-hailing company there faces; a foreign billionaire like Masayoshi Son just sees a thriving population with thousands of young, mobile-phone users.Super-apps are another example. The region’s hottest unicorns like to pitch these all-in-one platforms to venture-capital investors. To improve operational efficiency, they argue, more cash is needed to expand regionally. But that business model relies on the assumption that the social-media habits of a 22-year-old Vietnamese wouldn’t be too different from an Indonesian’s. This might not fly with a local investor, who's more adept at discerning cultural differences.Deeper local knowledge can also help avoid expensive mistakes. In October, Indian startup Oyo Hotels and Homes raised $1.5 billion from SoftBank Group Corp., among other investors, as it looked to expand into foreign markets. Yet Chinese fund managers largely stayed away — and for good reason. This week, Reuters reported that Oyo is unlikely to hit profitability in India and China until 2022. Similar reports had circulated in local Chinese media months ago, pointing out that the company had no traction on the mainland, even though it boasted of being the largest single hotel brand there. SoftBank’s Son may now have a tough time convincing investors in Hong Kong that Oyo is worth more than $10 billion, the valuation at its latest funding round.In truth, Alibaba may not be the best test case to determine if Asia’s pool of money will slosh toward young companies. Within two business days, institutional investors can swap their Hong Kong-listed shares for stocks in New York, should they feel liquidity in the Asian city is thin. That option to flee to a U.S. haven may have brought hesitant investors on board in the first place. As Asia’s unicorns grow bigger, many are looking at dual listings to ensure there’s enough demand to absorb their sizable offerings. Indonesia’s e-commerce platform Tokopedia PT, for instance, is considering a listing on multiple bourses as it seeks a pre-IPO funding round. This, to me, is a sign that Asia isn’t ready to be self-sufficient just yet. Saudi Arabia may be able to jam Aramco down local investors’ throats; but Asia’s startups are still stuck with a New York investor base that has a diminishing appetite for them. (1) This figure excludes Japan.To contact the author of this story: Shuli Ren at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Alibaba (NYSE:BABA) should be able to deliver strong growth in 2020 as a number of macro obstacles fade away. If Alibaba stock is valued on the fundamentals of the company, it should get a much better valuation multiple. One of the biggest challenges BABA faces is the ongoing trade war between the U.S. and China. There are strong signs that there will be a trade truce and a possibility of "phase one" trade agreement.Source: BigTunaOnline / Shutterstock.com The phase one agreement will include reversing some tariffs on both sides. This should boost consumer demand in China and also improve the sentiment around Alibaba stock. Alibaba has reported 40% year-over-year revenue growth in the latest quarter and good growth numbers in the past few quarters. It is also showing strong growth in the cloud segment with 64% YoY growth. The trade truce and a steep growth trajectory make Alibaba stock a strong buy for 2020. Reduction in Trade TensionsRecent announcements from both the U.S. and Chinese administration signal strong support for a "phase one" trade agreement. This first phase will include a rollback of some of the major tariffs. An important date to watch is 15th December when an additional round of tariffs will be announced. These tariffs are more broad-based and could hurt consumer sentiment in both the U.S. and China. In order to prevent these tariffs, negotiators on both sides are looking to secure a phase one agreement as soon as possible.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter the holiday season, we should see a kick start of the presidential election cycle of 2020. According to Reuters, the current administration is looking to show progress in the trade talks with China. This should reduce the trade rhetoric in 2020 and improve the market sentiment toward a broader trade agreement. * 7 5G Stocks to Buy Now for the Future BABA would be one of the biggest beneficiaries of a trade truce. Since the first announcement of trade tariffs in March 2018, BABA stock has been gripped by a bearish sentiment that has led to lower price growth in the stock. On the other hand, its trailing twelve-month revenue has increased by 70%, while earnings per share has increased by 135% during this time period.A definite signal about the completion of a "phase one" trade agreement should provide an instant boost to Alibaba stock and improve the bullish estimates for the company. Alibaba Stock: Improvement in FundamentalsAlibaba continues to show rapid growth in key metrics. As mentioned earlier, the revenue growth in the past 18 months has been good. In the latest quarter, Alibaba reported 40% growth in core commerce and 64% growth in its cloud computing segment. At the current pace, Alibaba Cloud should be able to reach a $10 billion annualized revenue rate by the end of 2020. This would improve the standalone valuation of the cloud segment and Alibaba stock.Source: Company filingsThe EBITA margins of Alibaba Cloud in the latest quarter were down 6%. Currently, Alibaba's management is focusing on revenue growth in this segment. As the revenue base of cloud computing expands, we should see a rapid increase in margins. The trailing twelve-month operating margin of Amazon's (NASDAQ:AMZN) AWS is 25%. Hence, there is an over 30 percentage point gap between the margins of AWS and Alibaba Cloud. AWS reported a growth of 35% in the recent quarter, which is lower than Alibaba Cloud. As the revenue gap between Alibaba Cloud and AWS decreases, we should see a reduction in the margin gap between these two cloud players.Alibaba's core commerce services continue to show strong growth. Despite the larger size, Alibaba's revenue growth has been higher than JD.com (NASDAQ:JD), its main competitor in China. This shows the wide moat enjoyed by Alibaba's platform and its ability to monetize different services effectively. Impact on ValuationStrong fundamentals and a trade truce should provide a major boost to BABA stock in 2020. The stock is trading at close to 22 times its trailing twelve months price-to-earnings ratio. This is quite low for a company showing 40% revenue growth and significant upside from its cloud operations. The forward EPS estimates for Alibaba have also increased rapidly in the last few months. This makes BABA stock more attractive as a long-term buy and hold investment. * 7 Entertainment Stocks to Buy to Escape Holiday Blues Alibaba stock is trading at a reasonable valuation and has a number of tailwinds that can lift the stock in 2020. The stock is a good buy from both fundamental metrics as well as the macro trade situation. Investor TakeawayAlibaba stock has given great returns since the start of the trade tensions in March 2018. During this time, the company has improved its trailing twelve-month revenue by 70% and EPS by 135%. There are strong signals that a trade truce will be declared by the signing of a "phase one" trade agreement. This will remove the bearish headwinds for Alibaba stock and allow the company to be valued at its fundamental performance.Alibaba is not only showing YoY growth of 40%, but it is also increasing the ecommerce market share in China. The revenue growth in Alibaba has been higher than JD for a number of quarters. This should allow the company to launch new services and improve its margins. I believe that BABA stock can be a big winner in 2020 as it would be valued on fundamental growth prospects instead of fears about the trade war.As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy in December * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 * 7 Entertainment Stocks to Buy to Escape Holiday Blues The post Why Alibaba Stock Should Hold Strong in 2020 appeared first on InvestorPlace.
Amazon (AMZN) plans to open a pop-up store on the Chinese e-commerce platform, Pinduoduo, in a bid to expand the e-commerce business in China.
JD.Com Inc (NASDAQ: JD ) reported strong third-quarter results, beating the Street’s expectations for revenue, margin and user growth. More importantly, JD.Com achieved successful execution of its expansion ...
(Bloomberg) -- Amazon.com Inc. is counting on a smartphone app known for cheap deals to lure Chinese consumers during the Black Friday online spree, in a partnership that extends to the end of the year.The U.S. e-commerce giant’s cross-border unit has just opened a storefront on Pinduoduo Inc., China’s No. 3 online retailer after Alibaba Group Holding Ltd. and JD.com Inc.Starting from Nov. 28, the three-day sales campaign will offer Chinese consumers a range of overseas products from Australian baby formula to luxury watches and Nintendo Switch consoles. Pre-sales for some brands are already underway for the U.S.-inspired annual shopping extravaganza.PDD and Amazon said their partnership would continue until the end of December. In a statement, Amazon said its pop-up store on PDD will provide about 1,000 branded foreign products.In July, Amazon shut down its Chinese marketplace business in yet another example of how U.S. tech companies struggle to contend with local competitors in China. The company still runs businesses including Kindle e-books and international operations in the country. Kindle has flagship stores on Alibaba’s Tmall, JD and PDD.While Chinese buyers are accustomed to splurging during shopping festivals created by local retail giants, they also seek out bargain foreign products during Black Friday. The tie-up will help Amazon tap the half billion annual active buyers on PDD’s addictive app.It comes on the heels of Alibaba’s Singles Day promotion on Nov. 11, which has overtaken Black Friday to become the world’s biggest shopping event. Alibaba logged a record $38 billion of purchases during the 24-hour shopping marathon this year. JD and PDD also launched similar campaigns around that date.Founded in 2015, PDD has carved out a niche with social commerce that encourages making purchases with others in return for generous discounts. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as rivals Alibaba and JD delve into PDD’s base of smaller cities. Last week, the company posted worse-than-expected earnings for the third quarter, triggering its biggest share drop since its July 2018 debut. Its partnership with Amazon now offers the company a chance to recover some of the lost ground.“The move works disproportionately in Pinduoduo’s favor,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “It adds credence to its claims that it’s a space for consumers to buy branded goods, and accelerates internal plans to be active in cross-border e-commerce.”(Updates with Amazon statement in fourth paragraph)\--With assistance from Matt Day.To contact the reporter on this story: Zheping Huang in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Which stocks are investors thankful for? The answer is clear: massive growth stocks. This is because these names demonstrate the potential for plenty of share price growth. We don’t just mean in the short-term. No, we’re talking over the course of the next few years. However, no one said finding these stocks with stellar growth prospects was going to be easy. At the end of the day, any investment is accompanied by some degree of risk, with no sure-fire way to predict which names will come out on top. So what’s an investor supposed to do?One option is to take advantage of TipRanks.com. The platform’s wealth of market data arms investors with the information they need to see the bigger picture. During our own search, we used the platform to zero in on 3 stocks primed to outperform the market in the coming year and beyond.Let’s dive right in. Mercadolibre, Inc. (MELI)Mercadolibre was developed as an online marketplace for consumers in Latin American countries, with it now expanding its services to cater to the region’s under-banked community through its digital payments system, Mercado Pago. Given that $13.4 billion worth of goods are sold on the marketplace as well as its 93% year-to-date climb, it’s no wonder Wall Street is intrigued. After its third quarter earnings release, its growth story sounds even more promising. In terms of total payment volume (TPV), MELI flew past the $7.2 billion consensus estimate, with the figure coming in at $7.6 billion. In local currency, this amounts to a 190% increase for off-platform and a whopping 300% gain for digital wallet. On top of this, the company was able to add 1.6 million active payers. That being said, the postal strike in Brazil did take a toll on gross merchandise volume (GMV) by $35 million. In spite of this obstacle, GMV still gained 37%, up from 33% in Q2. While some expressed concern regarding its realized EBITDA margins of -9%, J.P. Morgan analyst Andre Baggio notes that this is a result of MELI’s investment back into the business. “Most of the year-over-year pressure came from a 9pp increase in branding initiatives inside marketing expenditure, which is not used to boost short-term results but rather to help build a stronger brand for the future. On top of marketing, MELI is also investing more in fulfillment and credit,” he commented.The four-star analyst added, “We see MELI as very well positioned in the Latin American e-commerce and Fintech environments.” To this end, he kept his Overweight rating while reducing the price target from $750 to $700. Even at this lower target, Baggio thinks shares could surge 24% over the next twelve months. (To watch Baggio’s track record, click here)Similarly, other Wall Street analysts have been impressed by MELI. It earns a ‘Strong Buy’ consensus rating thanks to the 7 Buys and 1 Hold assigned in the last three months. In addition, the average price target of $692 implies 22% upside potential. (See Mercadolibre stock analysis on TipRanks) JD.com, Inc. (JD)The Chinese e-commerce company just posted an earnings beat of monster proportions. As a result, several members of the Street believe that now is the time to add JD (up 53% year-to-date) to your shopping cart.To kick off its third quarter earnings announcement, JD reported that revenue had grown at its fastest rate since Q2 2018, up 29% year-over-year. Not to mention even with the intense competition it faces in the space, annual active users increased by 13 million, with the new total landing at 334 million, and monthly active users were up 36%. Credit Suisse’s Tina Long argues that JD’s focus on gaining users from “lower-tier” cities could drive this figure to further accelerate. She cites the fact that “(1) 70% of new users are from lower-tier cities; (2) Order and GMV growth in lower-tier cities was the highest in the past six quarters; (3) It performed particularly strongly in large ticket sized items like electronics & home appliances. Avg. ticket size in lower-tier cities was Rmb200, higher than peers” to back up this conclusion. As a result, she maintained her bullish call and bumped up the price target from $41.40 to $43.50, suggesting 36% upside potential. (To watch Long’s track record, click here)Meanwhile, Alex Yao of J.P. Morgan reminds investors that the year-over-year decline in GPM and weak net margin guidance don’t impact the strong profit growth outlook. “We suggest investors focus on profit growth: 1) the GPM YoY decline in 3Q19 didn’t affect the solid OPM YoY improvement (2.2% from 0.6%); 2) higher revenue growth can also lead to solid profit growth even if JD sacrifices discretionary profit; and 3) acquiring more new buyers is positive for longer-term upside,” he explained. This prompted the four-star analyst to stay with the bulls, boosting the price target by $1 to $43. (To watch Yao’s track record, click here)When it comes to the rest of the Street, the consensus is split right down the middle. 3 Buys and 3 Holds add up to a ‘Moderate Buy’. Based on the $39 average price target, the potential twelve-month gain is 23%. (See JD.com stock analysis on TipRanks) Yandex N.V. (YNDX)Yandex is a Russian internet and technology company that operates a popular search engine. On the heels of its announcement that it will be updating its corporate governance, some analysts are standing firmly behind YNDX, stating that the company’s 48% year-to-date growth is just the beginning. In order to align its corporate governance with country interests, the Priority Share, which is currently held by Sberbank, will get more rights and will be held by the Public Interest Foundation (PIF). The PIF is set to be governed by a board of 11 directors, including members from the five top Russian universities, three non-governmental institutions and the company’s three representatives. These new rights include the option to prevent a single entity from accumulating economic or voting interests in Yandex of 10% or more, down from the current 25% level, to make binding nominations for two members of the board, to temporarily replace the General Director of the Russian subsidiary and appoint the Interim General Director in special cases and Class A shareholders will be assigned with additional rights, including a requirement to get an approval from them for certain material transactions. Founder and CEO Arkady Volozh will also see his stake be moved to a family trust, with shares no longer being converted into Class A upon his death.UBS analyst Ulyana Lenvalskaya sees the changes as a good thing for YNDX shares. “We think the proposed changes i) address the single-man risk/outline a clear succession plan and ii) create a new layer of Russian IP and data protection; as a result recently intensified regulatory pressure on Yandex is likely to diminish, we believe,” she noted. Bearing this in mind, she reiterated her Buy rating and $54.30 price target. This conveys her confidence in YNDX’s ability to rise 34% in the next twelve months. (To watch Lenvalskaya’s track record, click here) Looking at the consensus breakdown, 2 Buys published in the last three months compared to no Holds or Sells amount to a ‘Moderate Buy’. Its $52 average price target also implies 29% upside potential. (See Yandex stock analysis on TipRanks)
(Bloomberg) -- An epic stock rally for China’s e-commerce upstart just faltered, clipping the fortune of its founder.Pinduoduo Inc. Chairman and Chief Executive Officer Colin Huang lost almost a quarter of his fortune as the company’s stock plummeted 23% on Wednesday, according to the Bloomberg Billionaires Index. His net worth tumbled to $16.3 billion, down $4.8 billion from a day earlier.PDD’s stock drop was the biggest since it held an initial public offering in July last year, reducing this year’s gain through Wednesday to a still-respectable 40%. The sell-off was triggered by the company’s worse-than-expected quarterly results. Sales more than doubled to 7.51 billion yuan ($1.1 billion) for the three months ended September, but fell short of the average analyst projection of 7.65 billion yuan. Net loss widened to 2.3 billion yuan from 1.1 billion yuan a year earlier.The disappointing results came after arch-rivals Alibaba Group Holding Ltd. and JD.com Inc. chipped away at the Chinese e-commerce upstart’s dominant position in smaller cities.Founded by Huang in 2015, PDD has carved a niche with social commerce that encourages making purchases with others. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as Alibaba and JD delve deeper into PDD’s base of smaller cities. In September, JD rolled out a group-buying app which, like PDD, entices purchases with generous discounts.What Bloomberg Intelligence says:Despite heavy marketing expenses, the company’s marketplace model can sustain high gross margin and should lead to profit as revenue scales up.Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.PDD said in a statement that many brands and small merchants must “choose one of two” platforms to be listed, without naming rivals. “Forced exclusivity has a material impact on Pinduoduo, we had to row upstream against the pressure,” it said.Sales and marketing expenses surged 114% to 6.9 billion yuan, helping China’s No. 3 shopping app to add 64 million new active users during the quarter. Its founder signaled that the company can afford to buy growth.“When there is opportunity, we should spend our money aggressively. We shouldn’t put our money into the piggy bank,” Huang told analysts on a conference call.To contact the reporters on this story: Venus Feng in Hong Kong at firstname.lastname@example.org;Zheping Huang in Hong Kong at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Colum Murphy, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As you might know, JD.com, Inc. (NASDAQ:JD) recently reported its third-quarter numbers. Sales of CN¥135b surpassed...
JD.com stock jumped then retreated Friday as the China e-commerce company reported better-than-expected third-quarter results. Revenue climbed 29% to $18.9 billion. Earnings soared 142%.