WB - Weibo Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
37.08
+1.72 (+4.86%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close35.36
Open35.79
Bid37.51 x 1400
Ask37.95 x 4000
Day's Range35.64 - 37.48
52 Week Range34.26 - 83.35
Volume3,203,246
Avg. Volume2,227,087
Market Cap8.344B
Beta (3Y Monthly)1.80
PE Ratio (TTM)13.54
EPS (TTM)2.74
Earnings DateAug 19, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est51.06
Trade prices are not sourced from all markets
  • Weibo Stock Is Still a Risky Play
    InvestorPlace

    Weibo Stock Is Still a Risky Play

    Weibo (NASDAQ:WB) stock reports its earnings Monday before the bell. The China-based social networking company has suffered in recent months as both the trade war and a weak revenue outlook decimated Weibo stock. The equity has continued to fall as geopolitical events weigh on most Chinese stocks.Source: testing / Shutterstock.com Although WB stock shows a great deal of potential, investors face too much risk by buying this equity approaching earnings. WB's Last Earnings Report Will Affect the Current OneAnalysts forecast WB stock earnings of 59 cents per share. This would represent a 13.2% drop from the same quarter last year when the company reported 68 cents per share in profits. They also predict revenues of $429.3 million. The company reported $426.6 million in the year-ago quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the revenue outlook for the second quarter hammered WB stock in May. The company announced a revenue outlook for the second quarter of $427 million-$437 million. This came in well below expectations. Up until then, Wall Street had expected second-quarter revenues of $481.8 million, as Regina Borsellino reported. That partially explains why WB stock has lost almost half of its value in the past four months. * 10 Cheap Dividend Stocks to Load Up On As the equivalent of Twitter (NYSE:TWTR) in China, Weibo has seen rapid subscriber growth. However, the company has struggled to monetize that growth. Weibo stock has also become caught up in the selling of Chinese stocks related to the U.S.-China trade war, despite the fact that it does not have direct exposure to the U.S. What WB Stock NeedsAs the company reports earnings, it still finds itself in need of a catalyst that will stem the decline. Weibo beat earnings estimates over the last four quarters. However, traders will want to see some indications that a massive revenue miss will not occur again.WB investors also need signs that the company will follow in the footsteps of its U.S. counterparts on better monetizing the site. Gaining traction with ads rescued both Twitter and Snap (NYSE:SNAP) in recent quarters. Weibo's investors want to see the same.Investors may have good reason to buy WB stock once the trade war abates. Weibo currently trades at a forward price-to-earnings ratio of 11.8. It has suffered a slight earnings slowdown this year. However, Wall Street forecasts earnings growth of 17.2% in fiscal 2020. They also expect annual profit increases to average in the double-digits over the next five years.To a degree, all Chinese stocks trade at a discount. This is due to investors having to buy Cayman Islands-based holding companies that represent firms in China. Still, I think the low forward P/E ratio prices in both that risk and the concerns over the trade war. The Bottom Line on Weibo StockDespite the low price, I would not buy WB stock before it announces earnings. Investors look into the future, so as long as earnings exceed expectations, I see no issues with the temporarily lower profits.However, traders also likely feel the sting of the much lower revenue outlook that came in the last earnings report. Weibo needs to avoid further surprises here. Moreover, the continued intensity of the trade war continues to spook investors. Fears that China will invade Hong Kong also have investors on edge. Chinese equities such as WB stock will feel the pain of such geopolitical actions whether or not they relate to the business.However, once the trade war ends, investors will probably see WB stock as an equity with a low P/E ratio registering double-digit profit growth. That makes for a promising outlook, eventually.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Weibo Stock Is Still a Risky Play appeared first on InvestorPlace.

  • Earnings Could Solidify or Squelch Alibaba Stock Uptrend
    InvestorPlace

    Earnings Could Solidify or Squelch Alibaba Stock Uptrend

    Credit has to be given where it's due -- at least the Alibaba Group (NYSE:BABA) bulls are trying. Though down in step with most other stocks since late July, Alibaba stock turned the ship around in early August before a major technical floor was broken. For the second time in less than three months, that recovery effort is unfurling on above-average volume.It remains to be seen if it will take hold. A solid second quarter report from rival JD.com (NASDAQ:JD) certainly helped fan the bullish flames of the current rebound effort. But, it wasn't enough to push BABA stock above a convergence of technical resistance before a newly-inverted yield curve stoked recession fears … again.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul Thursday's post-close earnings report from Alibaba Group may well force traders to commit to a decision, for better or worse, on Alibaba stock. BABA Stock Getting SqueezedIt's a misnomer that all of China's top stocks are in a nosedive. Certainly Weibo (NASDAQ:WB), Baidu (NASDAQ:BIDU) and Iqiyi (NASDAQ:IQ) have been fighting losing battles. Baozun (NASDAQ:BZUN), Tencent (OTCMKTS:TCEHY) and Alibaba stock remain in distinct uptrends though, even with sizeable setbacks seen in the middle of 2018.That could all change dramatically after Thursday's closing bell rings, however. That's when Alibaba is slated to reveal last quarter's results into an environment where there's little room left to roam.The chart tells the tale. The rising support line in place since early 2016 is still intact, prompting last week's rebound effort. But, a relatively young falling resistance line is also in place. That's what broke the rally effort in July, and ultimately in May as well. Click to EnlargeThose two lines are clearly on an intercept course, now less than thirty points apart. That's not a lot of room for BABA stock to do what it usually does.It's highly likely that whatever Alibaba reports on Thursday will ultimately snap the psychological underpinnings of either the support or resistance that has taken shape over the past few months. Alibaba Group Facing a HeadwindThe company's first-quarter fiscal results are going to be unveiled in a less than hospitable environment.Although the White House backed off on plans to introduce new tariffs on Chinese imports into the United States this week, older tariffs remain in place. While the U.S. economy is growing at a measurable pace, China's is starting to show serious cracks. The country's industrial output grew at a 17-year low in July. Though it hinted at a recovery in June, retail spending growth fell to 7.6% last month … the second-lowest growth pace in years. The nation's unemployment rate grew from 5.1% in June to 5.3% in July.It remains to be seen to what extent that turbulence will affect Alibaba's results. The quarter in question ended in June, so the first two months of the three-month stretch were reasonably healthy.Conversely, investors are increasingly pricing stocks based on where it seems they are going rather than where they have been. If China's e-commerce giant paints anything less than a rosy forward-picture, nervous investors may assume the worst and respond bearishly to bullish news. Looking Ahead for Alibaba StockAs of the latest look, analysts are calling for earnings of $1.46 per share of BABA stock on revenue of $15.82 billion. That's considerably more than the year-ago figures of $1.16 and $11.66 billion. The bar is set uncomfortably high.On the other hand, Alibaba only failed to top one quarterly estimate for the past three years. Again, a beat may still not be good enough against the present backdrop consisting largely of worry.Whatever's in store, just know that the chart is just as likely to lead the rhetoric as much as it's apt to be shaped by it. But, that's potentially problematic in itself.If a modest breakdown drags Alibaba stock below the aforementioned floor, that selloff will be heavily highlighted by the financial media, which will exacerbate the selling by virtue of inciting more fear. The market-wide tide will also play a role in the stock's direction from here, and clearly investors are increasingly nervous.Perhaps there's a case to be made for being on the sidelines by the time Thursday's closing bell rings, even if it means leaving money on the table. There's likely to be plenty of trade-worthy action outside of the converging wedge shape.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Earnings Could Solidify or Squelch Alibaba Stock Uptrend appeared first on InvestorPlace.

  • Can the Growth in Alibaba Stock Continue Amid Geopolitical Whirlwinds?
    InvestorPlace

    Can the Growth in Alibaba Stock Continue Amid Geopolitical Whirlwinds?

    When Alibaba Group (NYSE:BABA) last reported its earnings in May, there was little to quibble about. Revenues shot-up by 51% and net income came to an impressive $3.85 billion.Yet this performance was not enough to gin up interest in Alibaba stock. During the past three months, the shares have gone from $178 to $157.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, BABA stock is no outlier. Other notable Chinese stocks have also come under pressure, such as JD.com (NASDAQ:JD), Weibo Corporation (NASDAQ:WB) and Baidu, Inc (NASDAQ:BIDU). Yes, the U.S.-China trade war has certainly taken a toll.As for Alibaba stock, the next earnings report - which will be announced Thursday before the market opens - will be an important one. Keep in mind that the company has already indicated that growth will likely decelerate. * 7 Stocks Under $7 to Invest in Now So, what does the Street expect for the current quarter? Well, analysts forecast revenues to jump by 28.4% to $16.09 billion and earnings to come to $1.49 per share. And yes, given BABA's own conservative guidance, the numbers are probably beatable. But this may not matter much. For now, the markets are mostly concerned about the trade situation, which is vague. The Quarterly Events for Alibaba StockFor BABA stock, the latest quarter has certainly been active. Let's take a look at some of the highlights: * The company filed confidential papers for a listing on the Hong Kong market. The proposed offering, which will be led by China International Capital Corp and Credit Suisse (NYSE:CS), will likely raise billions (keep in mind that the U.S. IPO came to $25 billion). Although, due to the continued instability in Hong Kong, the listing is far from a guarantee. * Alibaba's B2C platform for brands and retailers, Tmall, announced a partnership with the New York Fashion Week (NYFW): The Shows. There will also be similar arrangements with the Paris Fashion Week and Milan Fashion Week. * Luxury brand Michael Kors - which is a part of Capri Holdings Limited (NYSE:CPRI) - has opened a digital store on Tmall. The deal will also include exclusive access to special products. * Alibaba Group announced a strategic partnership with the municipal government of Yiwu, in the Zhejiang province of China. The deal will involve the launch of the eWTP hub, which will facilitate trade in the world's largest wholesale market. * For the "6.18 Mid-Year Shopping Festival," Taobao and Tmall had record-breaking performances, as demand from less-developed cities surged. More than 200,000 brands took part in the event. Bottom Line on BABA StockFor the long-term, I think Alibaba stock looks attractive. The company is similar to Amazon.com (NASDAQ:AMZN), with dominant positions in key markets like e-commerce and cloud computing. What's more, the market in China is much larger. For example, BABA has a whopping 721 million mobile monthly active users (MAUs), up 104 million on a year-over-year basis.As for the cloud business, the prior quarter saw a 76% surge on the top line to $1.15 billion. The company has been leveraging its massive platform to capture new customers and has also been aggressive with adding new services like blockchain, cybersecurity, database systems and artificial intelligence.Something else: the valuation on Alibaba stock is fairly reasonable. Consider that the forward price-to-earnings multiple is 18.5-times. By comparison, JD.com is at 26x.However, in the near-term, there still may not be much bullishness with BABA stock. The uncertainties regarding trade seem to be paramount concerns right now. And this could mean that shares will be choppy for some time.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post Can the Growth in Alibaba Stock Continue Amid Geopolitical Whirlwinds? appeared first on InvestorPlace.

  • Coach, Givenchy in hot water over China T-shirt row
    Reuters

    Coach, Givenchy in hot water over China T-shirt row

    BEIJING/HONG KONG (Reuters) - Chinese brand ambassadors of fashion labels from Coach to Givenchy have severed ties with the companies over products which they said violated China's sovereignty by identifying Hong Kong and Taiwan as countries. The brands are the latest to get into hot water over political issues in China, which has been more assertive in its territorial claims and how it expects foreign companies doing businesses in China to describe them. Italian luxury label Versace and its artistic director, Donatella Versace, apologised on Sunday after one of its T-shirts, depicting the territories of Hong Kong and Macau as countries, was criticised on Chinese social media.

  • Barrons.com

    3 Stocks for a China First Investment Strategy

    IQivi, Weibo, and Pinduoduo offer investors a way to monetize themes and products that have broad societal appeal

  • PR Newswire

    Weibo Corporation to Report Second Quarter 2019 Financial Results on August 19, 2019

    BEIJING, Aug. 7, 2019 /PRNewswire/ -- Weibo Corporation (WB), a leading social media for people to create, share and discover content, will announce its unaudited financial results for the second quarter of 2019 before the market opens on Monday, August 19, 2019. Following the announcement, Weibo's management team will host a conference call from 7 AM - 8 AM Eastern Time on August 19, 2019 (or 7 PM - 8 PM Beijing Time on August 19, 2019) to present an overview of the Company's financial performance and business operations. Weibo is a leading social media for people to create, share and discover content online.

  • What Should We Expect From Weibo Corporation's (NASDAQ:WB) Earnings In The Next 12 Months?
    Simply Wall St.

    What Should We Expect From Weibo Corporation's (NASDAQ:WB) Earnings In The Next 12 Months?

    Looking at Weibo Corporation's (NASDAQ:WB) earnings update in March 2019, analyst forecasts seem fairly subdued, as a...

  • Can iQiyi Stock Get Its Mojo Back?
    InvestorPlace

    Can iQiyi Stock Get Its Mojo Back?

    The IPO market has been strong, but iQiyi (NASDAQ:IQ) stock has not joined the party. Since becoming public last year, the shares are up a mere 6% or so, even though the company is often called the Netflix (NASDAQ:NFLX) of China.Source: Shutterstock But with expectations kind of soft for IQ, could this be a good time to buy IQ stock? Or should investors hold off for now? Well,IQ stock is certainly showing signs of momentum. * 7 Stocks to Buy With Over 20% Upside From Current Levels During the quarter, IQ did report a big-time achievement: IQ's subscriber base exceeded 100 million for the first time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's what the CEO and founder of IQ, Dr. Yu Gong, said: "Leveraging our exceptional capabilities in producing original content and deploying innovative AI technology, we have achieved remarkable membership conversion through our relentless efforts to cater to the diverse entertainment needs of our users and optimize their experience on our platform. Chinese consumers are increasingly willing to pay for high-quality content, a trend underpinned by the rapid evolvement of the entertainment industry and technology in China."And the company had some other notable highlights during the quarter: * At the Mobile World Congress (MWC) in Shanghai, the Central Radio and TV Station, Shanghai General Station and the CCTV Financial Channel jointly granted IQ the "Mobile Internet Innovation Pioneer Award." IQ received the award mainly due to its use of cutting-edge AI (Artificial Intelligence) and VR (Virtual Reality) for content creation. After the news of the award was released, IQ stock jumped by 10%. * IQ launched an interactive video-platform plug-in that can be utilized in conjunction with video-editing software from Adobe (NASDAQ:ADBE). Using IQ's plug-in, a producer can easily change plots and edit story lines * IQ hosted the 2019 VIP Fan Carnival in Shanghai, which included more than 60 celebrities and 7,000 fans. Held in partnership with Weibo Corp (NASDAQ:WB), the event attracted about 1 billion views.But IQ's growth is still likely to meaningfully decelerate. For example, in Q2 analysts, on average, expect its revenues to climb by 9% year-over-year to $1.02 billion. In Q1, the company's top line jumped 43% YoY. The company's losses are also expected to continue. Analysts' average estimate is a loss of 44 cents per share of IQ stock (during the same period a year ago, the loss was 45 cents per share of IQ stock). The Issues With iQiyi StockIQ faces some tough challenges. One hurdle is the wild card of regulation. Keep in mind that the Chinese government has recently instituted new requirements for online video - with a focus on historical dramas -- which could hamper IQ's growth and hurt IQ stock.Next, the competitive environment remains intense. IQ must fight against rivals like Tencent (OTCMKTS:TCEHY) and Alibaba (NYSE:BABA), which have massive platforms and enormous financial resources.And while IQ has a hefty subscription base, the monthly payments are only$1.50 to $2 a month (IQ, however, also generates ad revenues). Furthermore, another InvestorPlace columnist, Josh Enomoto wrote: "Moreover, from a historical perspective, the Chinese don't value media content as much as we do. For decades, China was ground zero for content piracy. Guess what? Nothing has changed. Under this context, I just don't see Chinese consumers forking over their hard-earned yuan for something that they can get for free. That poses major challenges for IQ stock."In the meantime, IQ continues to spend significant amounts on original content. And those costs are likely to escalate, as IQ is planning to develop movies.In other words, it could be tough for IQ to become profitable. That is why the company has continued to raise money by a variety of means, including its recent $1 billion convertible bond offering. That move was not encouraging, as it came relatively soon after the IPO of IQ stock. The Bottom Line on IQ StockEven though the expectations for iQiyi stock are far from robust, the shares may not be worth buying right now. The company faces some tough headwinds - and they could easily cause its guidance to miss consensus expectations. So for now, investors shouldn't rush to buy IQ stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Can iQiyi Stock Get Its Mojo Back? appeared first on InvestorPlace.

  • Decrypt

    Justin Sun’s credibility problem

    Was Tron’s CEO detained in China by the authorities today? Or is he in San Francisco?

  • 3 Stocks Peter Lynch Would Love
    Motley Fool

    3 Stocks Peter Lynch Would Love

    The top investor regularly outperformed the stock market betting on companies like these.

  • 3 Cloud Stocks to Buy for July
    Zacks

    3 Cloud Stocks to Buy for July

    Check out these 3 Zacks buy-ranked cloud stocks to consider for July...

  • Right Now the Future Looks Pretty Bleak for IQ Stock
    InvestorPlace

    Right Now the Future Looks Pretty Bleak for IQ Stock

    While the U.S. stock market is making fresh new highs, Chinese firms are not enjoying the fun. Chinese stocks remain mired in a bear market, and its tech companies are in a drastic slump. Not surprisingly, iQiyi (NASDAQ:IQ) hasn't been spared. In fact, IQ stock has lost more than half of its value over the past year.Source: Shutterstock Much of this is probably due to external factors. The trade war has scared American investors away from Chinese stocks in general. And China's economy is showing signs of strain. But iQiyi has some concerns of its own that could keep the stock in the doghouse in coming months. Is iQiyi To Fault For Its Massive Stock Price Losses?Chinese stocks have gotten absolutely hammered over the past year. There are 39 Chinese firms with a market cap over $2 billion that have been listed in the U.S. for at least a year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Of these, 24 (well more than half ) have lost at least 20% of their value over the past year. Only four out of the 39 have posted a positive return over the past year.IQ stock has been the biggest loser of the bunch, however, shedding 59 percent of its value over the past 12 months. Other notable peers have performed almost as bad, however.Weibo (NASDAQ:WB) is down 58 percent. Sina (NASDAQ:SINA) has plunged 52 percent. And even internet giant Baidu (NASDAQ:BIDU) hasn't been spared; it has knifed 55 percent lower. So IQ stock, while being the worst of a sorry bunch, is hardly an overwhelming outlier. iQiyi's Recent TumbleLike most tech stocks, IQ plummeted to end 2018. Shares recovered to start 2019, but that recent optimism faded in March. Since then, IQ stock has been going straight down again.In addition to the general concerns about the trade war and the health of the Chinese economy, iQiyi is facing two more direct concerns.The first of these is increased government regulation. The China National Radio and TV Administration "NRTA" recently issued more strict guidelines for China's major video players. These will sharply limit the amount of historical dramas that these companies can produce, in relation to dramas based on modern settings.The Chinese government suggested that the video companies were promoting false and harmful views of China's past with these dramas.While this may sound like a silly issue to western investors, it is something to take seriously. Even the most hyper-capitalist of companies must play by a different set of rules in China than they would in places that have more free speech protections.Additionally, it's worth noting that various other Chinese media companies listed in the U.S. have gotten in trouble with the Chinese government for concerns ranging from piracy to sexual content previously, causing sizable share price declines. The current issue with historical dramas will probably blow over. But IQ stock will always face the headwind of the possibility of a government content crackdown at any point.iQiyi also issued more than $1 billion in convertible bonds in March. At the time, it appeared to be a success for IQ stock. They raised money at a lower interest rate and at a less dilutive price than expected. It also represented the second largest convertible bond offering by a Chinese firm in the United States to date.Still, it also appears to have reminded investors that iQiyi has a troubling balance sheet and no plans to make profits anytime soon. When Will iQiyi's Business Model Turn The Corner?It's popular to refer to iQiyi as the Netflix (NASDAQ:NFLX) of China, but this analogy doesn't fully work. For one thing, Netflix relies almost exclusively on subscription revenues. iQiyi, by contrast, gets less than half of its revenues from paid subscriptions. At its price points of $3/month for monthly subscriptions and $2/month for annual subscriptions, iQiyi needs a whole lot of subs to turn a profit.Notably, iQiyi doesn't have the first mover advantage that Netflix did. Already, the Chinese market has three major players. iQiyi has more than 500 million monthly users (not subs), but so does Tencent's offering. Alibaba's (NYSE:BABA) Youku has more than 400 million as well.They all offer competitively subscriptions at super low price points. This makes it difficult for iQiyi to simply copy the Netflix model of raising the subscription price frequently.On the other hand, iQiyi shares a major similarity with Spotify (NYSE:SPOT) rather than Netflix. This is that it has a robust free option, and generates substantial advertising revenues from it.iQiyi, like Spotify, hopes free users will upgrade over time, but it's not a completely closed community like Netflix. Advertising, though down as a percentage of the pie, still made up 43% of iQiyi's revenues in 2018, with subscriptions at just 37%.The idea is that iQiyi will eventually have enough original content to be able to drive far more subscription revenue. At this point, iQiyi is spending nearly as much on content costs as it brings in in revenue. That's obviously not a sustainable model.The question is, will iQiyi be able to reach an inflection point where it starts earning a profit on its content? The fact that two well-funded rivals in Alibaba and Tencent oppose them make it very difficult to either lock up the market or raise prices aggressively. IQ Stock VerdictIf iQiyi can stay the course for quite a few years, it can become a huge winner. It trades far cheaper than Netflix and other streaming companies on a Price/Sales basis. The combination of aggressive revenue growth and an expanding valuation multiple could make IQ stock a home run.But it will be many years, if ever, until iQiyi reaches that point. Right now, the business is losing gushers of money. That's problematic as it faces entrenched rivals. How long will investors fund iQiyi's money-burning content strategy? If the company can keep adding subscribers quickly, IQ stock will eventually recover. But there's a decent chance it will continue to struggle for a long time to come.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Right Now the Future Looks Pretty Bleak for IQ Stock appeared first on InvestorPlace.

  • Alibaba Stock Is Riding High on Growth in Cloud, Global Operations
    InvestorPlace

    Alibaba Stock Is Riding High on Growth in Cloud, Global Operations

    Over the past few months, the stock price of Alibaba (NYSE:BABA), one of the most important Chinese companies to be listed on U.S. exchanges, has been extremely choppy as the rhetoric on U.S.-China trade issues has become the elephant in the room.Source: Shutterstock It's probably the understatement of the past 12 months to say that the trade war between the U.S. and China have brought significant uncertainty to the global stock markets. As a result, most Chinese stocks are currently much cheaper than they were a year ago.Now that the meeting between President Donald Trump and the Chinese President Xi Jinping at the G20 summit is over, investors will turn their attention to the Federal Reserve's interest rate decision as well as the upcoming earnings releases by many tech heavyweights. Therefore, the recent volatility we have experienced, especially in the tech sector, is likely to stay with us for a while.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday let us discuss BABA stock in light of the developments in China as well as South and South East Asia. The Chinese Economy Is Growing and EvolvingOver the past two decades, Alibaba has become a highly regarded global company, and BABA stock offers U.S. investors the chance to invest in the growing Chinese consumer and e-commerce markets.Although the Chinese economy may slow down in 2019 or even 2020, its GDP is still expanding at an average annual rate of 6% minimum. This growth is indeed faster than almost any other major economy in the world. With a population of almost 1.4 billion people, China's economic growth is still in its early stages and the Chinese middle class is likely to expand for a long time. * 10 Best Stocks for 2019: A Volatile First Half About 20% of the country's retail purchases are made online. In 2018, the online retail sales of goods and services was over $1.3 billion, up by 23.9% year-on-year (YoY). Readers who are interested in various statistics on China may want to refer to the website of the National Bureau of Statistics of China.In other words, China's growing middle class will continue to drive increases in the country's consumer spending. And when average Chinese citizens have more money in their pockets, more of it can be spent on online shopping sites like Alibaba, which itself is a good proxy for levels of retail spending in China.Furthermore, many analysts believe that BABA stock's bottom line is not going to be too adversely affected by current trade wars, as its business model is tied to China directly, decreasing the long-term risks of bi-party trade wars.This fact may indeed be important for long-term Alibaba shareholders, as in general the trade war has had a negative impact on investor sentiment as well as on the prices of many tech stocks. After all, the U.S. is still China's biggest trading partner, as it buys almost one-fifth of its exports.As weeks go by, not many analysts believe that the U.S. and China are likely to conclude a comprehensive trade agreement soon. The negotiations may well drag out right up to the U.S. presidential elections.Yet, BABA stock may prove quite resilient to further news on the trade disputes, especially as one headline is usually reversed in a few days by usually an opposite headline. Alibaba's management has also downplayed the potential adverse effects of the trade war on BABA stock. Soon, markets may stop caring much about the news on the trade rhetoric. How Does Alibaba Stock Make Money?Alibaba is expected to release its next earnings statement on Aug. 22.When BABA stock released its most recent quarterly results on May 15, both sales and earnings exceeded estimates. Total revenue came at $56.1 billion, an increase of 51% YoY. On the bottom line, BABA stock grew adjusted net income by 12%. In fiscal 2020, management expects Alibaba's revenue to top $72 billion, a 33% YoY growth.In the most recent quarterly statement, analysts have paid attention to four main areas: * Core commerce (BABA's largest segment, whose revenue grew 54% YoY); * Cloud computing (revenue soared soared 76% YoY); * Digital media and entertainment (revenue increased 8% YOY); and * Innovation initiatives (revenue jumped 22% YOY).Despite the company's dominance in the Chinese e-commerce space, Alibaba is also rapidly expanding into many other lucrative industries aside from consumer products and retail. These segments include cloud computing infrastructure (i.e., Alibaba Cloud), digital payments (i.e., Ant Financial Services Group), online entertainment (i.e., Youku Tudou and Alibaba Pictures), and food delivery (i.e., Alibaba Local Services Company which is a merger between Ele.me and Koubei).Alibaba also owns over 31% of Weibo (NASDAQ:WB), the Chinese microblogging company. Chinese internet celebrity (better known as "wanghong") accounts at Weibo, and the website's rich multimedia functionalities help make WB a much-loved and somewhat indispensable social media company within China. Furthermore, WB's recent investments in live video streaming and fintech have already started contributing to the bottom line.Although many analysts have expressed growth concerns regarding China in the coming quarters, the country's economic fundamentals have vastly improved over the past decade. The internet population is still booming and money continues to pour into Chinese companies operating in this space -- factors that help support the long-term durability of BABA stock. BABA Stock Has Robust FundamentalsAlibaba has been branching out into other business ventures, and this expansion has been made possibly partly by its steady free cash flow (FCF), which measures a company's ability to produce cash. Investors care a lot about FCF, as it can be used in a discretionary manner. For example, BABA has used its FCF to invest in growth opportunities and strengthen its balance sheet further.Therefore on Aug. 22, Wall Street is likely to analyze the company's cash position closely. Many analysts expect Alibaba's revenue to continue growing by double-digit-percentage rates.In general, Alibaba's management does not provide any earnings guidance for future quarters. But there is general consensus that BABA's top line can increase at an average annual rate of 20%, through both organic growth and acquisitions. That would be an impressive growth rate for a company with a market cap of $452 billion.Another metric to pay attention to in August is Alibaba's operating margin, which stood at roughly 18% as of the end of the first quarter. Over the years, BABA's high operating margin has contributed to its profitability, which has been even higher than that of Amazon (NASDAQ:AMZN).However, investors are concerned that Alibaba's profit margins are decreasing. In fact, they are at their lowest levels since the company went public in September 2014. The group's various investments in especially cloud, digital media and food delivery have been pressuring profits. Although these new ventures help BABA expand its ecosystem, they also weigh on the stock's profitability, as these other segments are not yet profitable. The current profit margin stands at 27.7%. Alibaba Stock Is a Leader in E-CommerceAt present, the company's share of the Chinese e-commerce space is over 55% and BABA's core business of online retail contributes to about 85% of revenues.In comparison, Alibaba's closest rival, JD.com (NASDAQ:JD), has about 16% share of the Chinese e-commerce space. On the other hand, in 2018, Amazon's share of online retail marketplace was less than 1%; as a result Amazon is now closing down its Chinese online market.BABA operates through three main ecommerce sites -- Taobao, a Chinese online shopping website; Tmall, a Chinese-language website for business-to-consumer online retail; and Alibaba.com, the group's international trade site. The three sites have hundreds of millions of users globally and host millions of businesses.Alibaba's mobile Monthly Active Users (MAUs) on its e-commerce platforms is now 721 million. Alibaba's core business of e-commerce is highly profitable, as it charges a commission on items sold. The group also sells advertising on its platforms.Alibaba uses Gross Merchandise Volume (GMV) to measure total sales transacted through its platforms. For fiscal 2019, Alibaba's commerce business generated $853 billion in GMV, especially led by the Tmall retail marketplace. GMV on Tmall and Taobao have also increased by 31% and 19%, respectively.It is important to remind our readers that many U.S. companies already use Alibaba's platforms to reach consumers in China, a market that's competitive yet attractive. And the group is aiming to increase its reach further and have more American business list their products on the company platforms. When Alibaba reports in August, BABA shareholders will be interested to analyze the corresponding MAU and GMV numbers.Earlier in 2019, the International Monetary Fund (IMF) warned that China, the world's second-biggest economy, is likely to be slowing down in the rest of the year. However, the e-commerce market in China is still forecast to almost double within the next four years to reach $1.8 trillion. Therefore, even if the Chinese economic growth pauses for a few quarters to come, the country's growth potential is intact.In other words, a potential cooling off in China shouldn't get in the way of a sensible, long-term investing strategy, which BABA stock may offer shareholders. BABA's Cloud Segment Is GrowingWith a population of nearly 1.4 billion people, China is the largest country in the world. A rising middle class leads to higher consumerism, and that bodes well for many industries in China. One of those industries set to benefit is cloud computing.Alibaba's concentrated push deeper into cloud computing is increasingly being compared to the success of Amazon's cloud business. Alibaba Cloud is now the market leader in Asia.On May 15, when BABA released its quarterly results, both sales and earnings exceeded estimates. Investors cheered that BABA's cloud computing revenue soared 76% YoY.Alibaba has over 40% of the public cloud market in China. The market share of Tencent Holdings (OTCMKTS:TCEHY), its biggest competitor, is about 11%.As a result of increased diversification as well as the growth in the cloud space, Alibaba's total revenue is expected to grow by double-digit-percentage rates. Such a growth rate would indeed be impressive for a company with a market cap of $415 billion.Alibaba is now offering data analytics services to third-party businesses through A100, which integrates consumer shopping data into merchants' other services. The data is also becoming increasingly personalized through the use of artificial intelligence (AI). For example, Nestle (OTCMKTS:NSRGY) and Starbucks (NASDAQ:SBUX) have already started using this data analytics service offered by A100. Other merchants have started linking facial-recognition data to A100 so that they can offer personalized solutions to customers as soon as they enter the store. Ant Financial and Alibaba's Fintech EcosystemThe global payments industry is a $100 trillion plus market. And the financial technology (fintech) apps revolution is quickly changing the way traditional banks, credit-card issuers and mobile-payments companies work with businesses as well as their retail customers.Ant Financial Services Group, formerly know as Alipay, is Alibaba's mobile and online payment platform. Alibaba has a 33% stake in Ant Financial, which is an extremely popular mobile payment platform throughout China.The company processes payments between any two users. It further offers a wide range of financial services, such as insurance, credit, loans, credit scoring, and wealth management.China is witnessing the tremendous growth of fintech. At present, Ant Financial and Tencent, Alibaba's biggest rival in this sphere, control about 90% of China's payments market.Ant Financial has now become a powerhouse which many analysts expect may itself become a publicly listed company. The group is valued at over $150 billion.To put it into perspective for our readers, the market caps of Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) are about $75 billion and $366 billion respectively. Alibaba Is Growing InternationallyFinally, forward-looking investors may want to pay attention to BABA's international growth numbers, too. Currently, more than 90% of the e-commerce giant's sales are made in China. But BABA has investments in start-ups in South Asia and Southeast Asia, too.Southeast Asia is en route to becoming the world's fourth-largest economic region by GDP, and analysts expect its e-commerce sector to expand tremendously within the next decade. Higher incomes and rising internet penetration rates are likely to strengthen these regions' e-commerce markets.Among the start-ups in those regions in which BABA has stakes are Paytm, an Indian digital-payments provider, and Lazada, a Singapore-based e-commerce company that is growing in overseas markets.Aibaba's focus on India is an area that investors may want to pay attention to for the long run. Globally, India is the fastest growing e-commerce market where the annual growth rate is about 50%. Increased smartphone usage as well as advances in delivery infrastructure and logistics are contributing to the increase in revenue. In addition to Paytm, Alibaba has also invested in Big Basket and Zomato in India.BABA is also looking to partner with European companies. Many European companies are still discovering new ways to enter the Chinese market, and BABA may enable them to connect with Chinese customers faster. Ant Financial is also seeking to expand in Europe.The "Amazon of the East" has also set its eyes on moving west through partnerships with European companies, including Vodafone Group (NASDAQ:VOD) in Germany and El Corte Ingles in Spain.International growth will not only help increase the company's bottom line, but it will also enable BABA to diversify away from China, lowering the country-specific macro risk of Alibaba stock. BABA Stock's Upcoming Listing in Hong KongBy the end of year, Alibaba is possibly going to Hong Kong for a second listing. There the company is expected to raise $20 billion.BABA had delisted from Hong Kong in June 2012. Now there is speculation as to why the company wants to move closer to China in a second listing and raise cash. Both the bulls and the bears are debating Alibaba's motives.Is it because BABA management is worried about the trade wars? Can BABA's second listing encourage more Chinese companies to follow Alibaba to Hong Kong? Does Alibaba need the cash for reasons investors do not know yet? Should investors therefore be worried?The exact result of this listing is still hard to pin down. For example, Alibaba has recently announced a one-to-eight stock split. A lower price may lure more Hong Kong-based investors into buying Alibaba stock.However, we do not know how its U.S. shareholders may react. One thing we can probably count on, though, is increased volatility in BABA stock price. Short-Term Technical Analysis for BABA StockAs a result of the impressive run-up of Alibaba stock since early June, BABA's short-term technical indicators have become overextended. Therefore, in July BABA stock has been impacted by profit-taking as it heads into its earnings report season.In the next few weeks, I do not expect BABA stock to regain its recent high of $195.72, which was last seen on May 3. At this point, bulls are not yet in control. Therefore Alibaba shares will need a strong catalyst to make them attractive in the eyes of long-term investors. Instead, depending on headlines regarding the U.S.-China trade war or the interest rate decision by the Fed, I expect BABA stock to trade between $155 and $175.In other words, at the current price of about $167, I find the risk/reward ratio on the long side inadequate. I would not advocate bottom-picking in case of near-term price weakness, but I'd be ready to start building a position around $155 later in the summer.It's almost impossible to time a top and a bottom in the markets. Those who bought at about $195 in early May might not be too happy, but investors who had the courage to step in at the end of 2018 or on the last day of May 2019 are in pretty good shape.If you are an investor with paper profits, maybe you should consider locking in some of those gains now. That said, if you are worried about profit-taking in the short term , then within the parameters of your portfolio allocation and risk/return profile, to protect your profits to date, you may consider placing a stop-loss at about 3%-5% below the current price point.In case of a potential profit taking, short-term moving averages and oscillators would move toward a more neutral reading from the overbought levels we are currently seeing. And long-term investors may prefer to open up positions then.In other words, if you are not yet a shareholder of BABA stock, you may want to wait on the sidelines until you have had a chance to analyze the earnings results.If you already own BABA shares, you may consider hedging your position with at-the-money (ATM) covered calls with Aug. 16 or Sept. 20 expiry.The volatility of Alibaba stock is high, giving it a broad trading range, so short-term traders should proceed with caution. BABA Stock's PEG RatioIn addition to looking at technical analysis charts, I keep an eye on stocks' Price/Earnings to Growth (PEG) ratio. A PEG ratio of one means the market's perceived value of the stock is equal to its anticipated future earnings growth. For example, if a stock had a P/E ratio of 25, and the company's projected earnings growth was 25%, then the PEG ratio would be one.With the PEG number, investors can compare and contrast the relative value of a stock against other stocks. I also compare the change in PEG with the change in a stock's price within a given time-frame to gauge investor sentiment regarding a stock's potential price increase.In 2019, Alibaba stock is up over 20%. Given BABA's current level of earnings growth, Alibaba's PEG of 1.33 is currently high from my perspective. In other words, I regard BABA's stock price of about $167 as somewhat over-stretched. However, please remember that the PEG ratio is just one tool in investors' arsenal. The Bottom Line on BABA StockAlibaba stock offers U.S. investors the chance to invest in the growing Chinese consumer and e-commerce markets. As the company's second decade ends, it is increasingly focusing on becoming a social hub. Alibaba's growth in e-commerce, cloud computing and other investments throughout China and globally make it a disruptor and a sound long-term investment.BABA stock is a fundamentally sound stalwart investment in China as well as in the neighboring regions with further growth prospects, profitability, leadership, stability and proactive management -- factors that are likely to translate into a strong balance sheet and robust bottom line in the rest of the decade.I also believe that most of the negative effects of the U.S.-China trade war have already been priced into Alibaba stock. If the two sides reach a deal that's seen in a positive light this year, BABA stock is likely to rally.The month of June has given Wall Street a glimpse of how powerful BABA's comeback could be: the stock rallied from an intraday low of $147.95 on May 31 to an intraday high of $177.95 on July 1.Therefore long-term investors should possibly view any decline in BABA stock as a good opportunity to get into Alibaba shares. However, traders with a short-term horizon should remember that there might be some profit-taking in the stock ahead of BABA's earnings in August.Investors who are interested in buying into Chinese companies, but do not want to commit all their capital to a single stock such as Alibaba may also consider investing in various exchange-traded Funds (ETFs) that have BABA as a holding, including iShares MSCI China ETF (NASDAQ:MCHI), KraneShares CSI China Internet ETF(NYSEARCA:KWEB) or iShares Core MSCI Emerging Markets ETF (NYSEARCA:IEMG).As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Alibaba Stock Is Riding High on Growth in Cloud, Global Operations appeared first on InvestorPlace.

  • 10 Best Stocks for 2019: A Volatile First Half
    InvestorPlace

    10 Best Stocks for 2019: A Volatile First Half

    The second quarter of 2019 has ended and that means we're at the halfway point in the Best Stocks for 2019 contest.Over the last three months, trade-war headlines and Federal Trade Commission announcements kept the markets interesting to say the least. But the S&P 500 and Dow are making new all-time highs, and the Nasdaq is close to doing the same.In the Best Stocks contest, we had wild swings as marijuana stocks briefly fell out of favor and the trade war hit some stocks more than others. While the stock that finished in first place clearly broke away from the pack, the race was tight between second and fifth places.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 So without further ado, let's take a look at how each of the Best Stocks' competitors did in Q2. Syrah Resources (SYAAF)Investor: Eric Fry Year-to-Date Change Through Q2: -40%Syrah Resources (OTCMKTS:SYAAF) is an all-in bet on the electric vehicle revolution -- and revolution hasn't come just yet. No matter which auto company ends up dominant and which battery they use, the anode on these batteries must be graphite. And SYAAF holds the largest graphite mine in the world.Right now, however, Syrah is cash flow-negative and the current demand for graphite isn't enough to drive it.But Eric Fry points out two positives:* "Syrah has been narrowing its operating losses, mostly by mining its graphite more efficiently … Quarterly cash-flow from operations has improved from a low of -$41 million in September 2016 to -$8 million in the most recent quarter. But a minus sign is still not a plus sign.* SYAAF is in the process of issuing new debt and equity to raise an additional $78 million. But this new cash isn't coming cheap. In order to attract these funds, the company is issuing stock at 56 cents a share -- a steep 20% discount to where the stock was trading before the company announced this financing."However, the stock has one thing going for it in this contest. As of this writing, SYAAF trades at just 61 cents and has a market cap of $213 million. And the best stocks for 2019 contest counts percent gained. That means less is needed to move the needle here than with other stocks on this list -- namely the Reader's Choice.Read more about SYAAF from Eric Fry here. Weibo (WB)Source: Shutterstock Investor: Kyle WoodleyYTD Change: -28%Those who follow the markets even casually won't need an explanation for a nearly 35% drop in a Chinese stock over the last three months. Of course it was the trade war.Weibo (NASDAQ:WB), the Chinese microblogging platform, has little to do with trade between the U.S. and China. But it has been caught in the crossfire nonetheless.As Investorplace's Luke Lango writes:"Broadly speaking, Weibo is China's Twitter (NYSE:TWTR). But, Wiebo has more users than Twitter, is more profitable than Twitter, and is growing more quickly than Twitter. Despite all that, Weibo has a market cap about half that of Twitter. Why? ARPU rates. Weibo monetizes its users less than Twitter. This is just a time issue."WB's growth -- particularly when it comes to digital ads -- has stalled out as a result of the macro concerns surrounding the Chinese economy, largely as a result of the trade war.Weibo reported earnings of 56 cents and revenues of $399 million for the first quarter, both beating expectations and showing large amounts of growth from the year-ago quarter. But WB fell on lowered Q2 guidance. * The 7 Top Small-Cap Stocks Of 2019 So WB stock's outlook for the second half largely depends on the trade war. If it continues, the stock will likely stall out, but if an agreement is finally reached, look for a nice pop in the price. Canada Goose (GOOS)Source: Shutterstock Investor: Will AshworthYTD Change: -11%Canada Goose (NYSE:GOOS) had posted at 10% YTD gain by the end of Q1, and it has now swung just as far in the opposite direction. The main culprit? A May 29 earnings report that showed the clothing brand's explosive growth is finally slowing.But InvestorPlace's Will Ashworth thinks that this slowing growth is not only okay, it's inevitable:"Canada Goose, like all growth stocks, is moving through a transitional period, where it goes from the 'It' brand to something more sustainable with the corporate infrastructure in place to meet the increased demand. "With the shock of slowing growth already priced into GOOS stock, the second half should hold more gains as margins improve and the company's expansion into China continues to take hold.Read more about GOOS from Will Ashworth here. LyondellBasell (LYB)Source: Via LyondellBasellInvestor: Charles SizemoreYTD Change: 3.7%LyondellBasell (NYSE:LYB) has jumped from 9th place to 7th over the course of Q2. With a gain of just 3.7% YTD, this just goes to show the current volatility of the market. So what happened for LYB this quarter?First, and best for LYB stock price, LyondellBasell walked away from a merger with Brazilian chemical company Braskem in early June. Shares ripped higher on the news. LYB shares hit a multi-year low on May 31, and gained 16% in the month of June.Is there more growth ahead for LYB? It's a plastics company, so it's rightfully under increased scrutiny and regulation when it comes to environmental impact. But Sizemore believes LYB is positioning itself well for a more environmentally conscious world:"LYB is not quietly waiting for its business to be regulated into extinction. The company recently announced a partnership with Finnish refiner Neste to begin commercial-scale production of bio-based plastic from renewable materials, and the company has numerous other green initiatives. Environmentalists may never love the company. But LYB is giving fewer reasons to hate it with every passing day." * 7 Value Stocks to Buy for the Second Half LyondellBassell also has a dividend payout of 4.8%. The higher yield is at least partially attributable to stock price, the company has steadily increased its dividend since its introduction seven years ago and still has a low payout ratio of just 36%.Read more about LYB from Charles Sizemore here. Viper Energy Partners (VNOM)Source: Shutterstock Investor: Neil GeorgeYTD Change: 21%Petroleum-company landlord Viper Energy Partners (NASDAQ:VNOM) has fallen from third place to sixth over Q2. This isn't great. But since VNOM is a property holder, not directly a petroleum producer, it misses a lot of highs and lows of the industry.Consider Diamondback Energy (NASDAQ:FANG), which originally set up the company. It's stock chart for the year looks more like a rollercoaster than most stocks described as such -- and it's only up 16% in the first half. If you're looking for a thrill ride, go with a more traditional petroleum play, but if you're looking for an investment, VNOM is safer, albeit less exciting. Neil George writes:"Petroleum prices never, ever keep going in one direction for long. There is a constant flow of supply and demand estimates and news and analysis that send prices for crude oil and natural gas up or down day by day and week by week … So, zero or infinity pricing just isn't in the cards for petroleum products. Rather than placing bets on oil soaring or plummeting, I've focused primarily for the longer-term on companies that go about their businesses whether crude oil prices are popping or dropping".George also points out that at current prices, VNOM is cheap. It trades at just 2.37 book value. VNOM also has a dividend yield just below 5%, which is incredible for a stock that's doubled in value since just June 2017.VNOM may have fallen this quarter, but it definitely still has the potential to take the crown.Read more about VNOM from Neil George here. Amazon (AMZN)Source: Shutterstock Investor: Readers' ChoiceYTD Change: 29%Readers' Choice stock Amazon (NASDAQ:AMZN) waned in the last few days of Q2. When I wrote the update on June 26, the e-commerce giant was a hair's breadth from second place, but it ultimately finished the first half in fifth. That just shows the close nature of the Best Stocks for 2019 contest.Readers don't need to wonder if Amazon has more to come in 2019. It's Amazon, of course it does. Next week, Amazon has its now two-day long Prime Day. Last year, AMZN sold $1 billion worth of profits in 36 hours with a site outage.Furthermore, the company's famous two-day Prime shipping is being cut to one day. The initial cost will hit Amazon's profit in the Q2 report, but the move should further establish dominance for the company over Walmart (NYSE:WMT), Target (NYSE:TGT) and other traditional brick-and-mortar retailers.Of course the threat of government regulation looms large, especially when President Donald Trump targets Amazon by name at random. But will the current government manage to enact any regulation in the next two quarters? How efficiently has the current administration accomplished other pet projects for the president? * 7 Retail Stocks to Buy That Are Down in 2019 Regardless of whether regulation comes this year, next year, or in a future presidential administration, the back half of 2019 is unlikely to be boring for AMZN stock.Read more about Reader's Choice AMZN here. Adobe (ADBE)Source: Shutterstock Investors: John Jagerson and Wade HansenYTD Change: 33%After holding the second spot for some time, software company Adobe (NASDAQ:ADBE) finished the quarter in fourth. John Jagerson and Wade Hansen still believe ADBE stock is undervalued based on its fundamentals.Over the past few years, Adobe has been shifting most of its software to a subscription model, which has done wonders for ADBE's top and bottom lines. But as John and Wade said:"Revenue and EPS have been rising with the stock's price, but its earnings multiple remains near historical lows … The point behind a value-price comparison like this is to determine if investors are paying more, or less, for each dollar of earnings than they have in the past. Because growth is still strong, paying less for the stock now indicates the likely probability that the shares are still undervalued."This means there's likely more growth ahead for ADBE stock. But will it be enough to beat out the competition?Read more about ADBE from John and Wade here. Teladoc (TDOC)Source: MayApps207 via WikiMedia Investor: Jason MoserYTD Change: 40%Teladoc (NYSE:TDOC) made a last-minute sprint for third place as the first half drew to a close. TDOC rallied 10% in the last three sessions of June, winning the tight race for third among ADBE and AMZN.Teladoc reported some great Q1 earnings and crossed 1 million doctor's visits for the first time, despite a weaker flu season. This company specializes in telehealth, or remote doctors' visits and other healthcare services. This places it at the forefront of the evolving healthcare industry, and its explosive growth shows that."The business is still unprofitable but what else is new? Profitability will come in time and management reiterates that the company will be cash flow positive for the first time in 2019 so we'll hold them to that target," wrote Jason Moser of The Motley Fool. * 10 Best S&P 500 Stocks to Buy For the Rest of 2019 TDOC has a growing business and investors are excited about it. Moser also anticipates additional partnerships with more traditional healthcare companies to be announced in the remainder of the year, meaning there's likely share price growth ahead as well.Read more about TDOC from Jason Moser here. Lululemon (LULU)Source: Shutterstock Investor: Louis NavellierYTD Change: 52%In Q2, the race was close … for second place. Lululemon (NASDAQ:LULU) was previously in first.The athleisure company, which Louis Navallier called "the North Star of retail clothing stocks," reported a remarkable double-beat-and-raise Q1 that showed the company is still growing -- and fast. The company also reported same-store sales of 14% compared to the expected 11.6%.Navellier cautioned that the ongoing trade war could lead to disappointing Q2 earnings for LULU, but also talked about many upcoming growth areas for the company:"LULU is now in expansion mode. It has built out its e-commerce business and is expanding its brick and mortar presence.Along with that expansion Lululemon has begun to offer yoga classes in some stores. It also keeps a tight rein on its brand, so it has complete control of its margins. This is one of the secrets of its success.Lululemon has even expanded its brand to include men's and children's lines as well. It has also launched a membership program that's still in beta testing, and just this week announced that it's going to begin a line of personal care products with Sephora."Can LULU reclaim the top spot? Definitely.Read more about LULU from Louis Navellier here. Charlotte's Web Holdings (CWBHF)Investor: Matt McCallYTD Change: 71%A 71% gain for a stock at the halfway point doesn't seem disappointing -- unless the stock was up 81% at the end of Q1. This is the case for Charlotte's Web holdings (OTCMKTS:CWBHF). But, as Matt McCall wrote, marijuana isn't just the hot sector of the moment, it's a sector at the beginning of a long-term growth narrative."Interest in sectors and asset classes ebbs and flows, and because the marijuana industry has been flying so high in recent months, we were overdue for a short-term correction.We're seeing that now. But don't make the same mistake a lot of people are making. Don't sell your holdings because some idiot tells you 'the marijuana bubble has popped.'Instead, focus on the long-term picture."A number of things happened in Q2 that should help CWBHF in Q3. The company named a new CEO, Adrienne Elsner, a former Kellog's (NYSE:K) executive. As McCall pointed out, her former position will help Charlotte's Web focus more on branding going forward. In Canada, CWBHF is now trading on the Toronto Stock Exchange. The next stop is the Nasdaq or New York Stock Exchange.In the days since Q2 ended, CWBHF has already reclaimed the top slot, meaning this is definitely one to watch for the rest of the year.Read more about CWBHF from Matt McCall here.As of this writing, Regina Borsellino held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks to Buy for the Rest of 2019 * 7 Education Stocks to Buy for the Future of Academia * 5 Stocks to Buy as You Rebalance Your Portfolio The post 10 Best Stocks for 2019: A Volatile First Half appeared first on InvestorPlace.

  • Can Weibo Corporation's (NASDAQ:WB) ROE Continue To Surpass The Industry Average?
    Simply Wall St.

    Can Weibo Corporation's (NASDAQ:WB) ROE Continue To Surpass The Industry Average?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

  • Tencent and Weibo Are the Gatekeepers to China's Luxury Market
    Motley Fool

    Tencent and Weibo Are the Gatekeepers to China's Luxury Market

    Mini programs and celebrities are locking in shoppers and advertisers.

  • Four Reasons It Still Is an Excellent Idea to Buy Alibaba Stock
    InvestorPlace

    Four Reasons It Still Is an Excellent Idea to Buy Alibaba Stock

    Down 5% in the last year and trading at a forward price-earnings ratio of about 20, Alibaba (NYSE:BABA) has been hurt by the U.S.-China trade war and uncertainty about China's economic outlook. As those fears clear, though Alibaba stock will regain its shine.Source: Charles Chan Via FlickrNow that Washington and Beijing have reached a trade-war truce and China has introduced an economic stimulus, fears about macro issues derailing Alibaba stock should recede.Moreover, BABA stock has multiple other positive catalysts that should drive BABA stock price higher over the medium-to-long-term.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere is a list of the four most important positive catalysts of Alibaba stock. * 7 Retail Stocks to Buy That Are Down in 2019 1\. Positive Macro Trends and BABA StockAlthough my prediction about Presidents Trump and Xi reaching a comprehensive trade deal at the G20 meeting turned out to be off the mark, the two leaders did agree to a truce that will include new talks.Additionally, America's took its threatened, new tariffs off the table for now, and Trump decided to allow American tech companies to resume selling technology to a key Chinese tech firm, Huawei.Moreover, Trump said the two sides are "back on track." That indicates Xi agreed to reinstate the concessions that Beijing had, according to Washington, previously made, and then reneged on.Since Treasury Secretary Steve Mnuchin indicated last week that the two sides had been "90%" of the way to a deal following China's concessions, I remain convinced that the countries will reach a comprehensive trade agreement sooner rather than later.In the wake of a trade deal, investors would become much less worried about a collapse of China's economy. Consequently, Alibaba stock should rise.But even if I'm wrong and a trade deal doesn't get done soon, China's recently unveiled economic stimulus appears to be strong enough to compensate for much of the impact of the trade war, at least for a while. 2\. Digital Ad Spending Can Lift BABA stockAccording to eMarketer, China's digital ad spending is expected to climb 22% this year and 18.5% next year. In 2020, it's expected to reach nearly $95 billion, and in 2023 it's forecast to be worth $134 billion. Like its U.S. counterpart, Amazon.com (NASDAQ:AMZN), BABA is generating a great deal of ad revenue.Alibaba's digital ad revenue is expected to be $27 billion this year and $33 billion in 2020, eMarketer predicted. The latter figure is a significant 7% of the current market cap of BABA stock.Alibaba's ad revenue is likely to climb meaningfully in subsequent years as China's digital ad sales continue to rise significantly. And interestingly, Alibaba's digital ad revenue is expected to be more than three times higher than of AMZN this year. 3\. Alibaba's Domestic InvestmentsThose who are bearish on BABA stock often deride the company's investments as wasteful and unprofitable. However, most of the company's domestic investments clearly benefit its core ecommerce business.For example, its stake in highly popular social media company Weibo (NASDAQ:WB) allows its "ecommerce and mobile payment features" to be "integrated" into Weibo's platform.BABA's digital media investments also enable it to attract more users to its site and ecosystem through ads and attractive content. Likewise, its investments in logistics companies, digital payment companies, and lenders have made its ecosystem increasingly "sticky" and attractive for buyers and sellers.Driven by its investments and acquisitions, as well as its powerful AI tools, BABA's strong ecosystem will enable its core ecommerce business to keep growing rapidly and remain profitable as China's middle class expands further. 4\. Alibaba's Foreign InvestmentsAlibaba subsidiary Lazada Group is reportedly Southeast Asia's ecommerce leader and the region's overall ecommerce sales are expected to climb to about $178 billion by 2025. That sounds like a tremendous profit opportunity for BABA and, consequently, a huge, potential catalyst for Alibaba stock.India's GDP is expected to grow more quickly than that of China this year, and the compound annual growth rate of the country's ecommerce sales from 2013 to 2017 was a staggering 53%, although it's expected to slow to a still-impressive 35% through 2022.As Seeking Alpha columnist Skylar Florian pointed out, BABA's strong ecosystem and multiple partnerships in India leave it very well-positioned to succeed in the huge, quickly growing economy.Finally, Alibaba's cloud revenue continues to grow by leaps and bounds, as the unit's revenue jumped 76% year-over-year in BABA's fourth quarter which ended in March. The company's cloud business is also closing in on profitability, as its adjusted EBIDTA fell just 2% year-over-year last quarter.As more and more Chinese companies join the cloud over the next few years, the business should become a meaningful profit center of the company and a significant driver of Alibaba stock.As of this writing, the author owned shares of Weibo stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Are Down in 2019 * 7 of the Best SPDR ETFs -- Besides SPY and GLD * 5 Dividend Stocks to Buy From Across the Globe The post Four Reasons It Still Is an Excellent Idea to Buy Alibaba Stock appeared first on InvestorPlace.

  • Hong Kong's PLA garrison held a drill last week on 'emergency dispatches'
    South China Morning Post

    Hong Kong's PLA garrison held a drill last week on 'emergency dispatches'

    The People's Liberation Army's Hong Kong garrison carried out a patrol exercise last week to improve readiness for "emergency dispatches", official newspaper PLA Daily reported on Tuesday.Although the exercises were staged last Wednesday, the military newspaper only reported the drill on Tuesday. That was a day after Hong Kong was rocked by violent protests in which the Legislative Council building was stormed and vandalised by activists demanding the government withdraw an extradition bill that would allow the transfer of fugitives to mainland China."On June 26, the army, navy and air force of the PLA garrison in Hong Kong took part in a joint naval and air patrol exercise in areas near Hong Kong," the report said. "The focus [of the exercise] was on reviewing and raising the units' combat abilities in emergency dispatches, ad hoc deployment and joint operations."The report, which was posted on the newspaper's account on microblog site Weibo, did not give details such as how many troops were involved, but it included photographs of Chinese soldiers with automatic rifles, a PLA helicopter and warships.Soldiers are seen with automatic rifles during the exercise in Hong Kong. Photo: Weibo alt=Soldiers are seen with automatic rifles during the exercise in Hong Kong. Photo: WeiboAfter the chaotic and violent scenes of Monday " the day the city marked the anniversary of its return to Chinese rule " the Hong Kong and Macau Affairs Office, the central government's liaison office and the foreign ministry all issued statements saying that Beijing supported Hong Kong police in handling "the incidents in accordance with the law".Public security matters are handled by local police in Hong Kong under the Basic Law, the city's mini-constitution.The timing of the newspaper's report was aimed at sending a subtle warning against "foreign interference in Hong Kong's affairs", according to a mainland Chinese official, who requested anonymity."The garrison holds such exercises regularly but the newspaper chose to publish details of these activities [on Tuesday] because it wants to tell the outside world that this is a sovereignty issue for China," the source said.The report did not say how many troops were involved in the drill. Photo: Weibo alt=The report did not say how many troops were involved in the drill. Photo: WeiboBut military analysts said the message was not so subtle."The drill happened almost a week ago and the PLA could have kept it quiet and not reported it. But instead they chose to publish it [on Tuesday] because the PLA wanted to flex its muscles," Beijing-based military expert Zhou Chenming said."The goal is very clear " the central government hopes that [by flexing its muscles], the ongoing dispute over the extradition bill will quiet down soon," he said.Analysts say the PLA chose to publish the report when it did to "flex its muscles". Photo: Weibo alt=Analysts say the PLA chose to publish the report when it did to "flex its muscles". Photo: WeiboMacau-based analyst Antony Wong Dong said the garrison's latest drill was similar to the anti-terrorism exercises that followed the Occupy Central protests in Hong Kong five years ago."It's predictable that the garrison would stage drills before or after the July 1 Hong Kong handover anniversary, just like their activities after Occupy Central," Wong said."But the PLA chose to announce this drill less than a day after the violent protests ... this appears to be a coordinated effort by Beijing to condemn the violence."Adam Ni, a researcher on Chinese foreign and security policy at the Australian National University, said publicising the exercises underscored Beijing's "carrot and stick" strategy for Hong Kong."It's ironic that on the one hand, the PLA opened its barracks [on the July 1 anniversary] to the Hong Kong public as a public relations exercise, and on the other it's sending out the blatant message about the use of force," Ni said."Basically it's a clear ultimate message that if the Hong Kong government is unable to deal with the social tensions, then in the end, the PLA would have to be used."Last August, the PLA's Hong Kong garrison held its biggest anti-terrorism drill in the city since 1997, involving five warships, four helicopters, an assault boat and dozens of soldiers, according to state news agency Xinhua.Additional reporting by William ZhengThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

  • Is Weibo Corp  (WB) A Good Stock To Buy?
    Insider Monkey

    Is Weibo Corp (WB) A Good Stock To Buy?

    Hedge funds run by legendary names like George Soros and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the […]

  • Weibo Corporation (WB) Stock Sinks As Market Gains: What You Should Know
    Zacks

    Weibo Corporation (WB) Stock Sinks As Market Gains: What You Should Know

    In the latest trading session, Weibo Corporation (WB) closed at $43.55, marking a -0.8% move from the previous day.

  • PR Newswire

    Weibo Announces Pricing of US$800 Million Notes Offering

    BEIJING, China, June 26, 2019 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (WB), a leading social media in China, today announced the pricing of its public offering of US$800 million aggregate principal amount of its 3.500% notes due 2024. The notes have been registered under the U.S. Securities Act of 1933, as amended, and are expected to be listed on the Singapore Exchange Securities Trading Limited. The Company expects to receive net proceeds from the offering of approximately US$793 million, after deducting underwriting discounts and commissions and estimated offering expenses.

  • Moody's

    Weibo Corporation -- Moody's assigns first-time Baa1 issuer and senior unsecured rating to Weibo; outlook stable

    Moody's Investors Service has assigned a first-time Baa1 issuer rating to Weibo Corporation. At the same time, Moody's has assigned a Baa1 senior unsecured rating to the proposed USD notes to be issued by Weibo Corporation. "The Baa1 rating reflects Weibo's strong market position as the leading social media platform in China, and its ability to attract content providers, users, and advertisers, allowing it to capture an increasing share of the online advertising market," says Lina Choi, a Moody's Senior Vice President.

  • High-Beta Stocks to Trade Wild Market Swings
    Investopedia

    High-Beta Stocks to Trade Wild Market Swings

    Wild price swings have swept across the major indexes this holiday season. Explore three high-beta stocks to trade the increased volatility.

  • Bear of the Day: SINA (SINA)
    Zacks

    Bear of the Day: SINA (SINA)

    Bear of the Day: SINA (SINA)