|Bid||165.71 x 800|
|Ask||0.00 x 2200|
|Day's Range||163.42 - 167.90|
|52 Week Range||129.77 - 206.00|
|Beta (3Y Monthly)||1.85|
|PE Ratio (TTM)||47.31|
|Earnings Date||Aug 21, 2019 - Aug 26, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||217.23|
Facebook’s ambitious cryptocurrency project ‘Calibra’ comes as the social media behemoth continues to face scrutiny about data privacy.
BEIJING/HANGZHOU, China (Reuters) - In China, the sales maxim of 'know your customer' is being taken to new lengths. One of the first firms to join an Alibaba Group Holding Ltd program that provides years of consumer shopping history, snack food chain Bestore Co Ltd plans to link facial recognition technology with the e-commerce giant's account data by the year's end. For customers opting to have their facial data in Bestore's systems, that means shop assistants will be able to check on what food they like the moment they enter one of its stores.
BEIJING/HANGZHOU, China (Reuters) - In China, the sales maxim of 'know your customer' is being taken to new lengths. One of the first firms to join an Alibaba Group Holding Ltd programme that provides years of consumer shopping history, snack food chain Bestore Co Ltd plans to link facial recognition technology with the e-commerce giant's account data by the year's end. For customers opting to have their facial data in Bestore's systems, that means shop assistants will be able to check on what food they like the moment they enter one of its stores.
Alibaba Group’s (BABA) Taobao and Tmall shattered multiple records during this year’s “6.18 Mid-Year Shopping Festival,” sating a rising demand from consumers in less-developed cities for quality products. Innovative marketing campaigns and tools provided by Alibaba’s core platforms during the 18-day campaign helped more than 110 brands each generate gross merchandise volume in excess of RMB100 million. Popular among brands of all sizes, Taobao livestreaming helped generated GMV of more than RMB13 billion.
When it comes to the stock market, U.S. President Donald Trump's Twitter (NYSE:TWTR) account may be the crystal ball which can help investors predict what's going to happen next.Back in early May, Trump fired off a tweet in which he said that China "broke" the trade deal, and that new tariffs would be coming soon. That tweet shook markets. Stocks fell. Over the next month, trade tensions between the U.S. and China heated up. Stocks kept falling. From Trump's tweet to the end of May, the S&P 500 shed more than 6%.Now, in late June, Trump has fired off another trade-related tweet. But this one has a far more positive tone. In this tweet, Trump said that he and China President Xi Jinping are going to have an "extended meeting" next week at the G-20 Summit in Japan. That tweet surprised markets, since most investors presumed the two nations were on such disagreeable terms that a meeting at G-20 wasn't going to happen. Now, it's going to happen. That's good news for markets. The S&P 500 responded by rallying more than 1% that same day.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, a Trump tweet was the very thing which started a big meltdown in markets in May, because that tweet basically said trade talks are not going well. Now, a different Trump tweet could be the very thing which starts a melt-up in markets in late June, because this tweet basically says that a trade deal could be coming soon. * 7 Value Stocks to Buy for the Second Half With that in mind, let's take a look at six stocks that are ready to bounce in a big way in the event a trade deal does get struck between the U.S. and China sometime soon. Stocks to Buy for a Trade War Bounce: Alibaba (BABA)Source: Shutterstock If the U.S. and China strike a trade deal in the foreseeable future, one stock that will fly higher is Alibaba (NYSE:BABA).Being the juggernaut in the Chinese e-commerce landscape, Alibaba goes as the China economy goes. When China's economy is firing on all cylinders, so is Alibaba. Revenue growth is big, margins are healthy and BABA stock moves higher. On the flip side, when China's economy is slowing, Alibaba slows, too. Revenue growth decelerates, margins compress and BABA stock moves lower.China's economy was firing on all cylinders in 2017. That's why Alibaba stock went from $90 to $180. But, China's economy slowed in 2018. That's why BABA stock fell from $180 to $130. Shares rebounded to $190 in 2019 as China's economy picked up steam against the backdrop of improving trade relations. But trade relations deteriorated in May, and since then, BABA stock has dropped back to $160.It looks like trade relations are back on the "getting better" path. So long as they remain on that path, BABA stock will move higher. In the event that a trade deal is actually struck, this stock will soar to levels above $200. iRobot (IRBT)Source: Shutterstock One under-the-radar growth stock which is set to win big if the U.S. and China strike a trade deal is iRobot (NASDAQ:IRBT).iRobot manufactures and sells consumer household robotic products, with the present focus on robotic vacuums. This is a growth market. Low-level automation is the first step of the automation revolution, and iRobot is king in the low-level-automation world, creating machines which automate simple tasks that most people don't like to do (vacuuming, mowing the lawn, cleaning the pool, so on an so forth). As such, as the automation wave gains mainstream traction over the next several years, household robotic adoption will rise rapidly and iRobot's sales and profits will march higher. That growth will ultimately push IRBT stock higher, too.This secular growth narrative has hit a snag with the trade war. iRobot is a U.S. company. One of its biggest growth markets is China. As such, iRobot is at the epicenter of the U.S.-China trade war, and every tariff hike back and forth results in higher input prices for the company. In short, trade war tensions between the U.S. and China have put the secular iRobot growth narrative on hold. * 5 Stocks to Buy for $20 or Less If a deal is struck between these two countries, that holding period will end, and it will be replaced by resumption of the iRobot secular growth narrative. That resumption will put IRBT stock back on a winning path. Luckin Coffee (LK)Source: Shutterstock One growth-oriented way to play a trade war resolution is through buying shares of Luckin Coffee (NASDAQ:LK).Luckin Coffee is China's brand new, hyper-growth coffee shop chain, which is surging throughout China using a unique, small-store, digital-first model that resonates with China's millennial urban consumers. At scale, this company could one day turn into the Starbucks (NASDAQ:SBUX) of China. Starbucks has a $100 billion market cap. Luckin's market cap is at $5 billion. As such, the runway for long term growth in LK stock is quite promising.But, this is a China growth story, and if the China economy isn't doing well, the LK stock growth narrative won't be smooth. China's economy won't do well if trade tensions continue to escalate. But if a trade deal is struck, China's economy will get back to firing on all cylinders. If that happens, the Luckin stock growth narrative will fire on all cylinders, too.As such, a trade war resolution could be the exact catalyst LK stock needs to get started on a long-term winning path. Nike (NKE)Source: rodrigofranca via FlickrOne global apparel giant that stands to benefit tremendously from a trade deal is Nike (NYSE:NKE).Nike is the world's leading athletic apparel brand. As the world's leading athletic apparel brand, the company has a ton of exposure to China, trade and tariffs. Roughly 26% of Nike brand footwear and apparel is manufactured in China, and the Greater China geography accounted for 15% of Nike brand sales last year. As such, Nike has broad exposure to both U.S.-China tariffs and a trade-related China economic slowdown.Remove these issues, though, and Nike looks really good right now. The company is simultaneously benefiting from a secular rise in global athletic apparel adoption and growing share in that market using rapid product innovation and a shift to a direct-sales model. * 7 Top-Rated Biotech Stocks to Invest In Today Broadly, then, if trade war risks disappear, NKE stock should fly higher. The rest of this growth narrative is on fire right now. Remove the one headwind, and that creates runway for big gains in Nike stock. Foot Locker (FL)Source: Shutterstock Along the same lines as Nike, another athletic apparel stock that should run higher if a trade deal is struck is Foot Locker (NYSE:FL).Things look good at Foot Locker right now. After spending a few quarters below zero, comparable-sales growth is back in positive territory again, and comps were up nearly 5% last quarter. Physical stores are comping positive. Digital sales are growing at a double-digit pace. Gross margins are expanding. Profits are up.Net net, the numbers at Foot Locker are pretty good, supported by a secular rise in athletic apparel adoption and stabilization in the physical and wholesale retail markets. The only problem here is the trade war. Unfortunately, it's a big problem. Owing to the athletic footwear market's broad exposure to imports from China, Foot Locker presently finds itself at the epicenter of the trade war. The higher tariffs go, the worse things will get for Foot Locker.But, if those tariffs go away entirely, things will get way better for Foot Locker. FL stock is cheap enough right now (8 times forward earnings) that if things do get better, the stock will bounce in a big way. Intel (INTC)Source: Shutterstock One sector that has been killed by the U.S.-China trade war is the semiconductor market, and one stock in that market that could win big in the event of a trade war resolution is Intel (NASDAQ:INTC).The semiconductor space has a lot of U.S.-Asia trade exposure, with big customers and manufacturers on both sides of the Pacific Ocean. Thus, as trade tensions between the U.S. and China escalated, global semiconductor demand weakened and production costs became an issue. Consequently, semiconductor stocks dropped.Intel was one of those stocks. As one of the world's largest semiconductor companies, Intel has huge exposure to China. But a trade resolution between the U.S. and China should re-stoke demand and ease rising cost pressures. If that happens, Intel's revenue and margin growth trajectories will meaningfully improve. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Much like FL stock, INTC stock is cheap enough today (10x forward earnings) that any positive news on the trade front should put significant upward pressure on shares.As of this writing, Luke Lango was long BABA, IRBT, LK, NKE, FL, and INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post 6 Stocks Ready to Bounce on a Trade Deal appeared first on InvestorPlace.
In May, Alibaba (NYSE:BABA) reported what appeared to be blowout earnings. The report topped expectations by a mile, but it did nothing for Alibaba stock. BABA stock price barely advanced following the earnings release, and it is still down 9% over the last three months.Source: Shutterstock What's going on? Surely, some of the struggles of Alibaba stock are related to the trade war. The longer it drags on, the more the Chinese economy will continue to slump. But Alibaba faces some unique issues of its own, namely that people are increasingly questioning the company's accounting. BABA is now trying to sell more stock to the public, while its short interest has ballooned to 9% of its available shares. That's a massive number for a company of its size. * 7 Value Stocks to Buy for the Second Half The shorts have been encouraged by the internet posts of a person who claims to be a financial professional These posts, made under the name Deep Throat IPO, contain allegations about Alibaba's accounting, leading many investors to conclude that BABA can't be trusted.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is Alibaba Actually Earning Much Money?For last quarter, Alibaba reported a huge jump in its net income. In fact, on both a GAAP and non-GAAP basis, Alibaba crushed analysts' average expectation. It reported non-GAAP earnings per share for the quarter of $1.28 against the consensus outlook of just 95 cents. Meanwhile, its GAAP EPS of $1.47 absolutely annihilated analyst estimates of just 51 cents per share.What explains the huge disparity? Most of Alibaba's reported profits for the quarter came from marking up the value of its investments rather than from its operating businesses. For the quarter, its reported net income soared 252% year-over-year to $3.5 billion. However, its actual profits from its operating business went down 5% to just $1.3 billion, though it would have posted a modest gain if it hadn't had to pay a lawsuit settlement.Still, its worth asking what's going on. Alibaba reports phenomenal revenue growth rates, yet its core retail profits are essentially flat. And its much-touted cloud and digital media divisions continue to lose money. Take out the increased profits from its investments - which doesn't mean much unless BABA can turn that paper into actual cash in the future - and BABA stock is absurdly expensive compared to its actual cash earnings. Is Alibaba Really Bigger Than Wal-Mart And Amazon?There's long been a great deal of dispute over whether Alibaba and other Chinese retailers inflate their GMVs (Gross Merchandise Volume). The SEC probed Alibaba's sales reporting a few years ago, and investors have made allegations about other Chinese firms like PinDuoDuo (NASDAQ:PDD) inflating their revenue.In the case of Alibaba, the numbers get more and more questionable as time goes on. Alibaba claims its GMV has soared more than tenfold from 2012 to today, with that figure jumping from $80 billion then to more than $800 billion now. For comparison sake, that's more than Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) handle annually combined! You might say that Alibaba's business could be that big because China is so huge. Remember, though, that Walmart is a leading retailer in 25 countries and Amazon has a huge overseas businesses as well. It strains credibility to believe that Alibaba is larger than Walmart and Amazon put together.There's also the matter of how much each company generates per employee. That is a common check for fraud, and Alibaba comes out looking rather peculiar. Deep Throat IPO puts it well:The other ratio I find fascinating is GMV per employee. Walmart's GMV per employee is $284,000. Amazon's is $428,000. Alibaba's is $8,366,000 per employee. They are truly masters at doing more with less.Is it realistic for Alibaba's employees to be 20 times more efficient than Amazon's? If you own BABA stock, you better hope so. Is Ant Financial Worth Anything Close To Investors' Expectations?Supposedly, Alibaba's Ant Financial, a digital payments facilitator, is worth $150 billion, which would make up around a third of the overall $400 billion market cap of Alibaba stock. In fact, Ant Financial was valued at $150 billion when it raised money last year. However, there is reason to be skeptical about that valuation. Specifically, it scrapped plans for an IPO last year, and it was supposed to launch an IPO this year, but the offering appears to be delayed again.Meanwhile, Ant Financial, which is supposed to be such a dominant global payments player, doesn't appear to be doing so well. Last year, Alibaba, which has a profit-sharing agreement with Ant Financial, did not receive any distributions from Ant because Ant didn't make any profits. This past quarter, however, Alibaba earned $77 million from Ant Financial. $77 million seems like a pittance, given Ant Financial's supposed $150 billion valuation. Perfectly normal. What Happens If the Chinese Financial System Freezes Up?For all of Alibaba's purported profits, the company keeps needing more money. There's probably good reason for that, since most of its "profits" don;t come in the form of cash while it is investing money in a nearly endless list of start-ups both in China and overseas. As mentioned above, Ant Financial did a big fundraising push last year, and now Alibaba is trying to unload a cool $20 billion of its stock in a secondary offering in Hong Kong.All this brings up the trade war and the weakening yuan. The yuan is near seven per dollar, its lowest level in years, and pressure appears to be growing for a major devaluation of the currency. What happens to Alibaba's ability to raise more money to keep its investing carousel spinning if China's capital markets freeze up? Also, the valuations of all these nascent businesses Alibaba has invested in will implode if the IPO window shuts down for these sorts of firms. The Verdict on BABA StockIt's been interesting watching Alibaba and JD.com (NASDAQ:JD) over the past year or two. As the Chinese economy has slowed, many of China's retailers have seen their growth rates sharply drop. JD, for example, has gone from 50% annual growth to just 20% recently. Alibaba's growth rate, however, appears totally unaffected by the deepening Chinese malaise. It keeps pumping out 50% annual revenue growth, rain or shine. Does Alibaba have a special sauce that keeps it immune to economic weakness?So far, BABA stock has been a winner. But how long can it keep up? Alibaba already claims to be larger than Amazon and Walmart put together. If the numbers are real, surely BABA will run out of people to sell to fairly soon; there are, after all, limits to a company's growth once it dominates a market. And if the numbers aren't real…At the time of this writing, Ian Bezek owned JD.com stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post 4 Burning Questions for the Owners of Alibaba Stock appeared first on InvestorPlace.
Baillie Gifford partner Richard Sneller also shares insights on Russia, Brazil, Argentina and rising demand for oil.
Alibaba (NYSE:BABA) reportedly is getting a Hong Kong listing. Multiple reports suggest the company is planning to sell $20 billion worth of Alibaba stock on the Hong Kong Stock Exchange. A key question, with the BABA stock price down about 18% from early May highs, is "Why now?".Source: Shutterstock As with so much when it comes to Alibaba stock, bulls and bears likely will answer the question very differently. Bulls see the company raising capital for its myriad initiatives -- and potentially raising the profile of BABA stock. Bears wonder why the company needs the cash and why it needs to do such a deal now.BABA has long been a battleground stock. The Hong Kong listing likely will only harden both sides.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Case for the Alibaba Stock OfferingThere are two broad benefits to the cross-listing. One, Alibaba's plan to list on the Hong Kong exchange could -- and maybe should -- drive the BABA stock price higher.Hong Kong-listed shares can be owned directly by Chinese investors. Those investors might see Alibaba more favorably than their foreign counterparts. And if Alibaba stock rises on the Hong Kong exchange, its New York listing might do the same, as arbitrageurs buy cheaper New York-listed shares. * 7 Top-Rated Biotech Stocks to Invest In Today That said, those arbitrageurs also would sell the Hong Kong-listed shares, potentially mitigating some of the effects of increased demand. And the two shares would not be the same: BABA stock does not offer direct ownership of the company. Rather, 'shareholders' own a stake in a VIE (variable interest entity) in the Cayman Islands.That VIE has a contractual right to Alibaba profits -- but that's not the same thing as actually owning shares of Alibaba itself. As such, it would seem almost certain that Alibaba shares in New York will trade at a consistent, if modest, discount to the Hong Kong-listed shares to account for the VIE-related risk.Still, details aside, a second listing could increase demand for Alibaba stock, particularly among China's retail investors. Smaller investors control 35% of the Chinese market, against an 8% share in the U.S. And the pending Alibaba stock split likely allows those Chinese retail investors to afford smaller positions. There is a case that BABA stock should get a bump from the two listings.The second goal, apparently, is to raise capital. Alibaba's New York IPO was the largest in history, raising $25 billion. Alibaba reportedly will bring in another $20 billion this time around. Those funds can be used for more acquisitions; building out the cloud business; or further investing behind the business.That in turn would seem to signal a longer-term rise in Alibaba stock, assuming the funds are invested well. The Case Against the OfferingSo BABA bulls no doubt see the new listing as good news. Indeed, the BABA stock price has risen modestly of late, though a stronger broad market likely plays a role as well.But for Alibaba skeptics, the offering seems curious. That's particularly true for investors who question the company's accounting, The first question is why, exactly, Alibaba needs another $20 billion. The company closed fiscal 2019 (ending March 31) with $28.3 billion in cash on its balance sheet. Alibaba owns another $24 billion or so in investment securities (not including its investments in private companies). That $44 billion war chest sits against total debt of less than $9 billion.To be sure, Alibaba does have places to spend its cash. The company's operations beyond core commerce last year -- cloud computing, digital media and entertainment, and its "innovation initiatives" -- all posted losses last year as Alibaba invested in future growth. In cloud, Alibaba is trying to replicate the success of Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Rival JD.com (NASDAQ:JD) is spending heavily on its supply chain.But operating losses for those segments totaled a little over $5 billion. Even with those losses, free cash flow was somewhere in the range of $15 billion, even including payments for copyrights and other intangible assets. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 For those who doubt Alibaba, the offering (which reportedly will be of new shares) makes little sense. Alibaba, if its financials are accurate, has more than enough cash to fund even aggressive investments in its new initiatives. Unless there's a big acquisition planned, Alibaba is diluting its shareholders for money it doesn't seem to need. Is the BABA Stock Price Too Low?Alibaba stock is down 23% from July 2018 highs. Yet it will likely price those shares at a discount to the current U.S.-listed price (as is usually the case with these offerings). That in turn means Alibaba shareholders will see their ownership diluted at a price well below their view of the stock's intrinsic value. (Presumably, all Alibaba shareholders, outside of passive managers, believe the stock is undervalued at the moment.)It's possible the dilution will be worth it. Perhaps Alibaba has a big deal in mind. It needs to compete against JD.com and Tencent Holdings (OTCMKTS:TCEHY) and, perhaps, the more cash the better. A wider reach for the stock -- and direct ownership, as opposed to the U.S.-based VIE structure -- can help as well.But the capital raise only adds to the doubts surrounding BABA stock as well. And while short interest here is likely somewhat overstated (there are no doubt arbitrage traders who are long Altaba (NASDAQ:AABA) and short BABA), short sellers likely will see the offering as confirming their thesis, not disproving it.In short, the beauty of the listing, like Alibaba stock, is in the eye of the beholder. Bulls see more shareholders, more cash, and a higher BABA stock price. Bears see another questionable move … and maybe even another red flag. Time will tell which side has it right.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post With BABA Stock Price Down, Why Is Alibaba Selling Shares In Hong Kong? appeared first on InvestorPlace.
The fight between China’s ecommerce giants has stalled. As the market matures, there is little ammunition left to bridge the gap between leader Alibaba and runner-up JD.com. Alibaba has triple the market share and higher margins.
Alibaba may soon relive the glory days associated with its record-beating initial public offering in 2014. Now the biggest stock in Asia-Pacific, with a market value of $412bn, Alibaba has had to be creative to maintain its growth. China’s ecommerce giant does not necessarily need more funds.
Alibaba Business School today hosted its first-ever Asian reunion for eFounders Fellowship and Alibaba Netpreneur Training Programs Graduates in Kuala Lumpur, Malaysia. Over 200 entrepreneurs and participants from Southeast Asia participated in this event to learn and network with up-and-coming entrepreneurs around the region and celebrate their success stories.
For most of the past year, investor concerns surrounding JD.com (NASDAQ:JD) have mainly been about CEO Richard Liu, who was arrested in early September on suspicion of rape. JD stock fell 6% on the first day of trading following the news, further extending a drop that had begun in early June 2018.Source: Daniel Cukier via FlickrLiu was in Minneapolis for a residency as part of a doctorate program in business administration for "top-level executives" working full-time in China.While journalists wrote breathlessly about the shares plunging after Liu's arrest, the real question -- for investors -- is why JD stock began falling about a year ago in the first place and where it may go from here.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JD.com is InfrastructureLike Alibaba Group Holding (NASDAQ:BABA), JD.com stock is a play on Chinese e-commerce infrastructure. But unlike Alibaba, which focuses on clouds and retailing, JD.Com focuses on distribution. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 JD.com is able to deliver orders profitably to remote villages, and is a leader in automated delivery in cities. The company delivers about 150,000 orders daily from 500 distribution bases and it has robots delivering fresh goods by land and air. While U.S. companies like Amazon (NASDAQ:AMZN) struggle to get orders delivered in 24 hours, JD.com is getting some packages to their end point in 30 minutes.JD.com has a market cap of $33 billion and expects quarterly revenue of $21.85 billion, with profits of 5 cents a share, when it next announces earnings August 9. During the March quarter, when it was expected to earn 12 cents per share, it surprised investors with earnings of 74 cents. The delivery infrastructure has value in its own right, and there have been reports it might list the unit separately. China Growth ConcernsJD.com had revenue of $18.6 billion in 2014. That more than tripled, to nearly $70 billion, by 2018.My InvestorPlace colleague James Brumley wrote recently that investors are worried about JD tripling the number of its rural storefronts in China to 15,000.Serving 60-something moms and dads in rural villages is unique but selling refrigerators to their kids in Shanghai is harder. Despite having stores as big as 500,000 square feet, that's where I place my worries because then JD.com is competing directly with Alibaba. Unique NichesUnique niches are hard to come by, but JD.com keeps finding them. One of the more interesting is online sales of luxury goods, where it has a tie-up with Farfetch (NYSE:FTCH), a global seller of luxury brands that went public last September. * 7 Top-Rated Biotech Stocks to Invest In Today Farfetch China acquired Toplife, JD's luxury portal, in 2017. JD.com bought a $397 million stake in Farfetch and Liu sits on the Farfetch board. Farfetch opened a China portal on JD.com earlier this month, giving JD stock a much-needed boost.Which leads to the other bearish call on JD.com: the slowing growth of China itself. The trade wars have Morningstar cutting its growth estimates for the world's second-biggest economy in half, to 3.25%. That's still higher than U.S. growth. Bottom Line on JD.com StockThe trade war has made Chinese stocks volatile, especially in the tech sector. But JD.com stock is now selling at a Walmart (NASDAQ:WMT) price, when its $70 billion in sales are matched with its $33 billion valuation. (Walmart is worth $311 billion on $515 billion in sales.)JD.com's growth means it hasn't yet made a profit for a full year, but if it hits the mark in August, and continues to make money through 2019, while growing that unique infrastructure, it's got to be worth money to a speculative investor.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Growth Is The Only Question That Should Worry JD.com Stock Investors appeared first on InvestorPlace.
(Bloomberg) -- SoftBank Group Corp. founder Masayoshi Son is trying harder than ever to convince investors of the potential for his many technology investments.At a general shareholders’ meeting in Tokyo on Wednesday, Son shared some predictions that were eye-popping even by the standards of the outspoken Japanese billionaire. The value of SoftBank’s investment portfolio could grow 33-fold to 200 trillion yen ($1.8 trillion) in 20 years, he said. That’s an annual growth rate of 19%. The numbers were so outlandish that Son had to add a caveat.“Let me be clear that this is not a business plan,” he said. “It’s a tall tale.”The gathering was SoftBank’s 39th shareholders meeting, with about 2,000 investors present. Son’s remarks drew laughs and even feigned outrage from directors. Fast Retailing Co. CEO Tadashi Yanai, who sits on SoftBank’s board and is Japan’s richest man, urged shareholders to look out for Son “or he will go out of control.”The billionaire’s projections include investments by the Vision Fund. But even bullish analysts have much more modest projections for that portfolio. Chris Lane of Sanford C. Bernstein recently estimated the net present value of the current and future funds at $50 billion to $85 billion.Son then reminded shareholders how 15 years ago at the very same auditorium he presented another seemingly improbable target -- SoftBank with 1 to 2 trillion yen in profit. At the time, the company booked over 100 billion yen in losses. Annual net income has exceeded 1 trillion yen for the past three years.Over that period of time, Son has expanded into wireless operations with the acquisition of Vodafone Group Plc’s Japan unit, acquired Sprint Corp. in the U.S. and launched the $100 billion Vision Fund to transform SoftBank into a technology investment juggernaut. Still, the company trades at a deep discount to the worth of its holdings. The total value of the conglomerate’s publicly traded shareholdings is around 21 trillion yen, while SoftBank’s market cap is roughly 10.7 trillion yen. By the company’s own estimation, there is a discount of about 50%.Son’s message to investors is that when it comes to technology, he is ahead of the curve. He was early to recognize the value of e-commerce and invest in Alibaba Group Holding Ltd. SoftBank was also first to introduce Apple Inc.’s iPhone in Japan. Now Son believes the world is on the verge of another technological shift, driven by artificial intelligence that will transform every industry. He argues that the company’s portfolio of unicorns from Uber Technologies Inc. to WeWork Cos. positions SoftBank to reap the most benefits from that disruption.“I wish I had the money to make tons of investments at the start of the internet revolution. I could see it coming,” Son said. “We started the Vision Fund at the very beginning of the AI revolution.”At least a few of the investors present took him at his word.“Son may talk big, but just look at what he has actually accomplished,” said Yasuhiro Suzuki, a SoftBank shareholder of about 20 years. “I have been to many of these meetings, but today Son seemed especially in high spirits.”Key Insights:The Vision Fund is nearing the end of its investment cycle and SoftBank is in the process of raising a second one of equal size, Son said. The two funds will be successive. SoftBank is in talks with limited partners in the first fund to renew their investments.The company is increasing staff at the fund to 1,000 people, from 415 now.To contact the reporters on this story: Pavel Alpeyev in Tokyo at email@example.com;Takahiko Hyuga in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alibaba Group Holding Ltd (NYSE: BABA) shares have held up relatively well up to this point in 2019 considering the beating other Chinese stocks have taken as the trade war between the U.S. and China has ramped up. On Tuesday morning, Benzinga Pro subscribers received a series of options alerts related to Alibaba. At 9:39 a.m., a trader bought 576 put options with a $177.50 strike price expiring on July 5 at the ask price of $14.35.
The National Basketball Association has moved past Major League Baseball to represent the second most popular sport in the United States. How does the NBA make money?
The China internet giant has rallied ahead of the broad market this year, rising more than 21% in 2019. Citigroup says the momentum can keep growing.
Wu will take over responsibility from Executive Vice-Chairman Joe Tsai, who was demoted to a supportive role in the strategic investments unit, according to Reuters. The change comes at a time when Alibaba is investing in new business lines like cloud computing at a time when e-commerce growth is slowing. Alibaba's management shuffle represents the most significant changes at the senior level since co-founder Jack Ma announced his retirement, Alibaba said.
On June 18, Alibaba (BABA) announced senior management changes. Alibaba seems to be gearing up for life after Jack Ma. Daniel Zhang is slated to become Alibaba’s chairman after Ma retires in September.
InvestorPlace contributor Brad Moon recently covered the news about Alibaba (NYSE:BABA) filing for a Hong Kong listing that could see it sell up to $20 billion in Alibaba stock. More than that, it gives the ecommerce giant a secondary stock listing in Hong Kong, making it much easier for Chinese investors to own BABA stock.Source: Charles Chan Via FlickrMoon put it this way:"A company of this size choosing to list in Hong King sends the message that Chinese companies don't necessarily need to seek an American IPO to succeed. Making the situation worse, current tensions between China and the U.S. have Chinese companies looking for ways to reduce their exposure to American investment…Other Chinese stocks that are traded in the U.S. could take the same route as BABA stock and also look to Hong Kong for a listing."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn this scenario, Chinese companies could eventually skip New York altogether, opting to list closer to home, making it much more difficult for U.S. investors to get in on the tech action in that country. * 7 Top-Rated Biotech Stocks to Invest In Today It's a Problem for Investors EverywhereThis isn't a problem for just U.S. investors. Regular Joe's around the world, despite technology and globalization, still have a hard time buying stocks outside their own country. It's a big reason ETFs have taken off. If you can't buy Remgro (OTCMKTS:RMGOF), a South American holding company controlled by the Rupert family, you buy Franklin FTSE South Africa ETF (NYSEARCA:FLZA) instead, the ETF's 11th largest holding. If you're a believer in modern portfolio theory and efficient markets, buying FLZA makes a whole lot of sense. However, if you want to build a global portfolio of companies that are good capital allocators, as Remgro is, it's a much more difficult task. Why can't someone in China go to their computer and buy Alibaba without having to set up accounts with a broker that does business on U.S. stock exchanges? Here in Canada, Lululemon (NASDAQ:LULU) used to be dual-listed in Toronto and NASDAQ. In June 2013, the Vancouver-based apparel company delisted its shares on the Toronto Stock Exchange, opting to go with a sole listing on NASDAQ. For them, it was all about cost. By keeping the listing active, regulatory filings, etc. At the time, the TSX was moving 90,000 shares a day of LULU compared to 1.9 million on NASDAQ."They had very thin volume, considering the expenses of staying in the exchange. And I think they decided that was unwise. It does make sense at the end of the day that they are carefully managing expenses," said Betty Chen, senior vice president at Wedbush Securities Inc. in San Francisco at the time of the delisting. Today, if I want to buy Lululemon, I go to my online brokerage account, paying a commission for the trade and a foreign exchange fee to convert Canadian cash to U.S. cash. However, if I want to go outside Canada or the U.S., my life gets a lot more complicated. Why Does This Happen?With the advent of blockchain technology, I ought to be able to make financial transactions anywhere in the world, bypassing the traditional brokerage system.Yes, I'm sure this raises plenty of red flags about money laundering, etc., but like the photocopier (the 8.5 by 11 piece of paper you lay on the glass seems to be in a different place for every manufacturer) it would be far more efficient to have one system that works well in every part of the world in a seamless manner.The fact that Alibaba has to list Alibaba stock in Hong Kong to appeal to Chinese investors, and the Chinese government to a lesser extent, suggests the global sourcing of capital remains incredibly backward and old school. I get that this secondary listing has politics written all over it given the tensions between the U.S. and China, but to me, this says less about Alibaba stock and more about the failure of globalization.If the world were truly global, I could buy 100 shares of Remgro or a stock listed in Hong Kong or Beijing for $4.99. I can't. Can you? I doubt it. The Bottom Line on Alibaba StockIf you own BABA, I don't think this in and of itself does anything for the stock in the long haul.The $20 billion it will raise from the secondary listing should come in handy as it continues to grow its ecommerce and cloud businesses outside China. That should be good for its stock.However, I wish we didn't have to have this conversation. One listing should be suitable for investors anywhere in the world. Full stop. The fact that it's not is troubling, to say the least. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post The Hong Kong Alibaba Stock Listing Shows Globalization's Failure appeared first on InvestorPlace.
While the deteriorating job market could damage China's economy in the long term, Chinese stocks and ETFs are falling right now. FXI and GXC have lost nearly 8.7% and 9.7%, respectively, in the second quarter.
BEIJING/SHANGHAI, June 18 (Reuters) - China's Alibaba Group Holding Ltd on Tuesday unveiled its most significant business reshuffle since co-founder Jack Ma announced his pending retirement, as the e-commerce firm looks to bolster its investment focus in the face of slowing growth. Chief Financial Officer Maggie Wu will oversee Alibaba's strategic investments unit, taking over that responsibility from Executive Vice-Chairman Joe Tsai who will support Wu in her expanded role, the firm said on its official WeChat account.
BEIJING/SHANGHAI (Reuters) - China's Alibaba Group Holding Ltd on Tuesday unveiled its most significant business reshuffle since co-founder Jack Ma announced his pending retirement, as the e-commerce firm looks to bolster its investment focus in the face of slowing growth. Chief Financial Officer Maggie Wu will oversee Alibaba's strategic investments unit, taking over that responsibility from Executive Vice-Chairman Joe Tsai who will support Wu in her expanded role, the firm said on its official WeChat account. The change comes as Alibaba invests in new business lines such as cloud computing as a boom in its core e-commerce has peaked and revenue growth slows.
Maggie Wu, chief financial officer, will now oversee strategic investments, a key area for the group which has its roots in ecommerce but that also boasts a portfolio of more than 100 investments. from Jack Ma, the English teacher turned entrepreneur who founded the group two decades ago. Mr Ma remains as chairman until September, when Daniel Zhang will add it to his role as chief executive.
The trade war rhetoric has had a negative impact on investor sentiment as well as prices of many tech stocks. 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. Therefore, the recent volatility we have experienced, especially in the tech sector, is likely to stay with us for a while.Today, I am going to discuss three tech stocks that may be appropriate for investors who are looking for stocks that have had pullbacks in price and thus offer better risk/reward ratios than they did several months ago. These stocks are Alibaba (NYSE:BABA), AT&T (NYSE:T) and Oracle (NYSE:ORCL).I believe investors who buy into the shares of BABA, T or ORCL at any upcoming dip or even around the current levels will be rewarded well in a few years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today Shareholders who are still concerned about potential short-term risks may also consider hedging their positions. In that case, covered calls or put spreads with July 19 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Alibaba (BABA)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments, including e-commerce, cloud and electronic payments; potential end to U.S.-China trade warsExpected Price Range Until Next Earnings in late August: $135-$165The current environment offers valid reasons to be concerned about Chinese stocks, including Alibaba, the e-commerce giant. Alibaba's share price has thus seen a significant amount of weakness of late. Over the past year, the stock is down over 21%.BABA stock has been increasingly volatile on the back of the recent earnings released on May 15 as well as the U.S.-China trade war and Chinese economic concerns.Yet Wall Street concurs that with a population of almost 1.4 billion people, China's economic growth is still in its early stages and that the Chinese middle class is likely to expand for a long time.Furthermore, consumer disposable incomes are also going up, fueling growth in many sectors, including e-commerce.In fact, the e-commerce market in China is 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.Alibaba's current share of the Chinese e-commerce space is almost 60%. Many analysts believe that BABA's bottom line is not going to be too adversely affected by these current trade wars as its business model is tied to China directly, decreasing the long-term risks of bi-party trade wars.BABA's core e-commerce business contributes to about 85% of its revenue. Yet BABA is rapidly expanding into many other lucrative industries, including cloud computing infrastructure, digital payments, online entertainment and food delivery.Alibaba's concentrated push deeper into cloud computing is increasingly being compared to the success of Amazon's (NASDAQ:AMZN) cloud business. In cloud computing, BABA is now the market leader in Asia.In 2018, Alibaba merged its food delivery platform Ele.med with its lifestyle app Koubei to be able to capture a higher market share in servicing "hungry customers" and to better compete with Meituan, which is backed by Tencent Holdings (OTCMKTS:TCEHY).As a result of increased diversification, Alibaba's 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.On May 15, when BABA released its quarterly results, both sales and earnings exceeded estimates. Total revenue came at $56.1 billion, an increase of 51% year-over-year.In the earnings statement, shareholders paid attention to four main areas: * Core commerce (BABA's largest segment grew 54% YoY); * Cloud computing (revenue soared 76% YoY); * Digital media and entertainment (revenue increased 8% YoY); and * Innovation initiatives (where revenue jumped 22% YoY ).One important highlight was that BABA's mobile monthly active users (MAUs) on its e-commerce platforms reached 721 million. The owners of BABA stock will be interested to know the corresponding number to be released in the next statement in late August.Another metric to pay attention to is Alibaba's operating margin, which currently stands at 15%. Over the years, BABA's high operating margin has contributed to its profitability, which has been even higher than that of Amazon (NASDAQ:AMZN). BABA's net profit margin is also over 23%. In short, Alibaba is showing strong performance across the board.Finally, forward-looking investors may want to pay attention to BABA's international growth numbers too. Currently, more than 90% of the e-commerce giant sales are made in China.But BABA also has investments in start-ups in South Asia and Southeast Asia. Higher incomes and rising internet penetration rates are likely to strengthen both regions' e-commerce markets and contribute to BABA's bottom line.Given the fundamental strength of the company, I regard BABA stock buy-worthy at current levels.However, in the coming weeks, I do not expect BABA stock to regain its recent high of $195.72, which was last seen on May 3.Instead, BABA stock is likely to trade in a range, between $165 and $135, for several weeks, possibly until its next earnings report expected in late-August.The daily volatility of Alibaba stock is high, giving it a wide trading range, so short-term traders should proceed with caution. Nonetheless, long-term investors could view any decline in BABA stock as a good opportunity to buy into the shares. AT&T (T)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; growing content through WarnerMedia; decreasing debt levels; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $30-$37.5As internet-based communication becomes increasingly integrated into our daily lives, I find AT&T shares well-positioned to benefit from various commercial opportunities that would eventually benefit the stock price. June has already rewarded T investors well; the stock is up over 7% so far.Yet over the past few years, AT&T stock had lagged behind the broader market. Within the past 12 months, the stock has basically remained flat. The T share price on June 14, 2018 closed at $32.52. A year later, T stock is hovering around the same level.Even though the company has a strong brand and wireless infrastructure -- two factors that are likely to make it a dominant player in the 5G sphere -- the AT&T stock price has not yet reflected the company's robust forward-looking potential.Thus, now may be a good time for investors to decide whether the rest of the year could witness a sustained up move in the price of T shares.AT&T reported Q1 2019 earnings on April 24. With a market capitalization of $230 billion, the Dallas-based group breaks down revenue into six main segments: * Mobility (includes wireless subscribers) * Entertainment Group (includes DirecTV and U-Verse customers) * Business Wireless (provides services to companies and the government) * Latin America (includes Latin American and Mexican operations) * Warner Media (includes HBO, Turner and Warner Bros.) * Xandr (handles all advertising business)This diversified revenue stream of T stock is important for long-term shareholders who do not want to worry too much about short-term volatility.The company's key Mobility wireless segment generated revenue of $17.57 million, up 1.2% year-over-year. AT&T also added wireless subscribers and its domestic wireless business is neck and neck with Verizon (NYSE:VZ) for market share.In June 2018, a federal court approved the merger of AT&T's $85 billion acquisition of Time Warner -- a deal that has now turned AT&T into a media giant and "content king."This merger has been weighing on the T stock price for some time; however, the rest of 2019 should see the question marks slowly disappear.In the quarterly report, investors cheered that the group was selling off assets to decrease its debt burden. Indeed, over the past few quarters, AT&T's debt load had been on Wall Street's radar. The company finished 2018 with $171 billion of debt.The group has recently sold its minority stake in Hulu, a premium streaming service, to Hulu's other owners Walt Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA), for almost $1.5 billion.Acquiring Time Warner has bloated this debt load. However, the communications giant is now working to cut costs and debt at the same time. Management realizes the importance of decreasing the level of debt sooner than later.In addition to the company's strong earnings power through telecom and media-related operations, T stock also offers a strong dividend yield at over 6.3%. AT&T's dividend is a big attraction for many long-term investors seeking passive income. * The 10 Best Index Funds to Buy and Hold In short, along with the rest of the market, T stock could experience volatility near term. But long-term, the prospects for AT&T stock are robust and it offers a respectable dividend yield for income investors. Qualcomm (QCOM)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; moving on from recent regulatory probes and legal headlines; 5G Leadership; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $55-$75Shares of Qualcomm, the leading supplier of modem technology for smartphones, have been in a free fall since early May.On May 2, QCOM stock saw an intraday high of $90.34. Then on May 29, Qualcomm shares closed at $65.76.Legal headlines were mainly behind the unforgiving drop in the QCOM stock price. A federal regulatory probe recently concluded that the company had violated antitrust laws and that its licensing fees were too high.Qualcomm stock reports revenues in three main segments: * QCT (Qualcomm CDMA Technologies); * QTL (Qualcomm Technology Licensing); * QSI (Qualcomm Strategic Initiatives)Wall Street saw the ruling as having a negative impact on Qualcomm's QCT (i.e., chipmaking) and QTL (i.e., patent licensing) segements.Qualcomm is the largest maker of chips for smartphones, and its chipsets account for about two-thirds of its total revenue. Its chipmaking QCT segment produces the Snapdragon mobile system on a chip (SoC), a semiconductor product which bundles together a CPU, GPU and modem in a single unit.Its second-highest source of revenue is mobile-phone royalties and licensing. About 60% of its pre-tax profits are from its patent-licensing division, thanks to royalties from 3G and 4G technologies the chip giant helped invent.Qualcomm's patent portfolio is crucial for the company and the licensing business is the higher-margin segment of the three segments.The chip giant is currently appealing this ruling. Although the company may be successful in overturning the ruling, going forward, there is likely to be further choppiness in the stock price.In other words, if the company loses the appeal, the result could be fewer chipset sales in the QCT segment as well as much lower QTL patent licensing revenue for Qualcomm stock.On the other hand, a successful appeal could push QCOM stock upward, possibly to new highs. Yet, it will probably be several months before the company has a final answer from the courts.Analysts believe QCOM will also play a dominant and early role in 5G, replicating its success with 3G and 4G mobile networks. If the analysts are correct, then Qualcomm stock is indeed a good pick for long-term investors. The company is likely to provide a significant part of the intellectual property that will be used to develop 5G communication standards.Recent legal troubles and the subsequent share price drop in QCOM have followed the positive headlines in the second half of April. The chipmaker and Apple (NASDAQ:AAPL) had announced earlier that they had finalized a favorable agreement regarding intellectual property licensing fees for chips used in Apple's mobile devices.This agreement now dismisses all outstanding litigation between the two parties. Because of the success of the settlement, QCOM believes its revenues are likely to double annually in Q3 (the group's fiscal 2020 starts on Oct. 1).In other words, over the past few weeks, important legal developments have been the main driver behind the major volatility in QCOM stock. Therefore, as the dust settles, I expect investors to concentrate once again on the bottom-line results as well as the leadership position of the company.Meanwhile, the 3.6% dividend yield of QCOM stock and the generous stock repurchase program are likely to act as support in case the price of Qualcomm shares declines further in the coming weeks.For investors not familiar with Qualcomm, this drop in its share price may provide a good opportunity to research the company and decide if they would like to include QCOM stock in a long-term portfolio.Tezcan Gecgil holds covered calls on T and VZ stock (June 21 expiry). More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Leading Tech Stocks I'd Buy On A Dip appeared first on InvestorPlace.
Hong Kong stocks breathed a little life on Monday. It would likely be one of the top three stock offerings in Hong Kong's history. The city is exhausted after more than a month of protests that have finally forced the postponement of an extremely unpopular proposed law to allow suspects to be sent from Hong Kong to China for trial.