BABA - Alibaba Group Holding Limited

NYSE - Nasdaq Real Time Price. Currency in USD
165.91
-2.19 (-1.30%)
As of 1:55PM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close168.10
Open167.04
Bid166.25 x 900
Ask166.28 x 1100
Day's Range164.94 - 167.26
52 Week Range129.77 - 198.35
Volume11,402,506
Avg. Volume18,250,453
Market Cap431.958B
Beta (3Y Monthly)1.85
PE Ratio (TTM)47.44
EPS (TTM)3.50
Earnings DateAug 21, 2019 - Aug 26, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est218.13
Trade prices are not sourced from all markets
  • Amazon announced the date of Prime Day, and it sounds like Alibaba’s Singles Day
    Yahoo Finance4 hours ago

    Amazon announced the date of Prime Day, and it sounds like Alibaba’s Singles Day

    Amazon's annaul shopping event Prime Day starts on July 15.

  • China's drone giant DJI hits back at U.S. security concerns
    Yahoo Finance20 hours ago

    China's drone giant DJI hits back at U.S. security concerns

    Chinese drone-maker DJI dominates the drone market in the US. Following security concerns heard in the US Senate last week, DJI hit back at accusations with an 1800-word letter.

  • D.C. is finally paying attention to scary Chinese stocks, but Wall Street may pay the consequences
    MarketWatch42 minutes ago

    D.C. is finally paying attention to scary Chinese stocks, but Wall Street may pay the consequences

    U.S. regulators are finally paying attention to the risky issues associated with Chinese companies publicly listed in the U.S., but the proposed solution could actually be more harmful to U.S. investors.

  • Another Retailer Crumbles in China as e-Commerce Sales Rise
    Market Realist3 hours ago

    Another Retailer Crumbles in China as e-Commerce Sales Rise

    French retail giant Carrefour has agreed to sell an 80% stake in its China operations for ~$705 million to Suning.com, an Alibaba-backed company. While China represents a massive opportunity with its almost 1.4 billion population, it has not been an easy market for foreign companies, at least when it comes to retail and e-commerce.

  • Chinese Indexes Ended Six-Day Winning Streak Today
    Market Realist4 hours ago

    Chinese Indexes Ended Six-Day Winning Streak Today

    The six-day winning streak of the benchmark Shanghai Composite Index was broken today as the index fell 0.87% to close at 2,982.07. This was the longest winning streak in over a year for the index, which has gained 19.6% so far in 2019.

  • Will Rigorous Regulatory Scrutiny Favor Facebook's Libra?
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    Will Rigorous Regulatory Scrutiny Favor Facebook's Libra?

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  • Coca-Cola & China Firm to Sponsor Olympics: Trade War at Bay?
    Zacks4 hours ago

    Coca-Cola & China Firm to Sponsor Olympics: Trade War at Bay?

    The inclusion of Mengniu as a sponsor for Olympic Games corroborates the 'Look East' policy of IOC and represents a marked shift in its sponsorship program.

  • Starbuck Plans 3,000 New Stores in China
    Investopedia5 hours ago

    Starbuck Plans 3,000 New Stores in China

    Riding high on the available cash pile, Starbucks is making big strides in the most populous nation.

  • Starbucks-Alibaba Challenged by Tencent in Coffee Business
    Investopedia5 hours ago

    Starbucks-Alibaba Challenged by Tencent in Coffee Business

    Chinese internet giant Tencent has signed a partnership deal with coffee startup Luckin to challenge Alibaba-Starbucks tie-up

  • World's Most Valuable AI Startup Is Chinese and Alibaba-Backed
    Investopedia5 hours ago

    World's Most Valuable AI Startup Is Chinese and Alibaba-Backed

    The facial recognition technology developer’s latest fundraising reflects China's drive to overtake the U.S. in AI.

  • After Wrangler Spinoff, VF Taps Alibaba for China Expansion
    Motley Fool8 hours ago

    After Wrangler Spinoff, VF Taps Alibaba for China Expansion

    The strategic partnership will help it design and market products specifically for the Chinese market.

  • China’s Biggest Startups Ditch Oracle and IBM for Home-Made Tech
    Bloomberg8 hours ago

    China’s Biggest Startups Ditch Oracle and IBM for Home-Made Tech

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.For years, companies like Oracle and International Business Machines invested heavily to build new markets in China for their industry-leading databases. Now, boosted in part by escalating U.S. tensions, one Chinese upstart is stepping in, winning over tech giants, startups and financial institutions to its enterprise software.Beijing-based PingCAP already counts more than 300 Chinese customers. Many, including food delivery giant Meituan, its bike-sharing service Mobike, video streaming site iQIYI Inc. and smartphone maker Xiaomi Corp. are migrating away from Oracle and IBM’s services toward PingCAP’s, encapsulating a nation’s resurgent desire to Buy China.PingCAP’s ascendancy comes as the U.S. cuts Huawei Technologies Co. off from key technology, sending chills through the country’s largest entities while raising questions about the security of foreign-made products. That’s a key concern as Chinese companies modernize systems in every industry from finance and manufacturing to healthcare by connecting them to the internet.“A lot of firms that used to resort to Oracle or IBM thought replacing them was a distant milestone, they never thought it would happen tomorrow,” said Huang Dongxu, PingCAP’s co-founder and chief technology officer. “But now they are looking at plan B very seriously.” IBM, which gets over a fifth of its revenue from Asia, declined to comment. Oracle, which gets about 16%, didn’t respond to requests for comment.China has long tried to replace foreign with homegrown technology, particularly in sensitive hardware -- it imports more semiconductors than oil. That imperative has birthed global names like Huawei and Oppo and even carried over into software in recent years, as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. expand into cloud services. That effort has gained urgency since Washington and Beijing began to square off over technology.“China has always wanted to use domestic tech and in areas like cloud, it’s been very successful,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. “While it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.”Now, a coterie of up-and-coming startups are encouraging Chinese firms to go local. Customers use PingCAP to manage databases and improve efficiency, allowing them to store and locate data on everything from online banking transactions to the location of food delivery personnel.Backed by Matrix Partners China and Morningside Venture Capital, PingCAP is competing in a sector traditionally dominated by companies such as Oracle and IBM. The market is expected to grow an average 8% annually to $63 billion globally in the seven years through 2022.The startup is one of the newest members of a cohort of open-source database providers such as PostgreSQL and SQLite that are upending the market. Researcher Gartner forecasts that 70% of new, in-house applications worldwide will be developed on open-source database management systems by 2022.PingCAP -- mashing the term for verifying a web connection, ping, and the CAP computing theorem -- was founded by three programmers whose former employer, a mobile-apps company, was acquired by Alibaba. Inspired by Google’s Cloud Spanner, which pioneered the distributed database model, the trio -- Huang, Liu Qi and Cui Qiu -- began creating an open-source database management system that would allow companies to infinitely expand their data storage by simply linking more servers to existing ones.“Think of traditional database mangers like a fixed glass container, every time you run out of storage you have to get a bigger one,” said Huang. “What our system does is that you can link as many cups together as you want.”Their idea caught on with investors and venture fund hot shots including Matrix agreed to invest about 10 million yuan ($1.4 million) in 2015. To date the company has raised more than $71 million and has about 190 employees.PingCAP is working in a space where competition is fierce -- its database TiDB currently only ranks 121 among global peers, according to database rank compiler DB-Engines, which uses mostly mentions on social media and discussion forums as key metrics. Other open-source database managers such as PostgreSQL ranks 4th and its direct competitor CockroachDB, which also focuses on distributed database systems, leads PingCAP by 30 spots. The Chinese startup also operates in a market where it’s difficult to make money -- PingCAP only has a couple dozen paying customers in China and makes about 10 million yuan in revenue a year. Their best shot is to create successes that can be later replicated on a larger scale, said Owen Chen, an analyst with Gartner. “Work with the 10% early adopters free of charge, and make money off the 90% followers later,” he said.That’s why Huang is working with big names like the Bank of Beijing and Mobike -- so it can create templates for each sector. “Only one thing is certain, data will continue exploding,” said Richard Liu, a founding partner at Morningside Venture Capital. “We have the patience to wait before they figure out the best revenue model.”PingCAP has one thing going for it: Chinese customers are increasingly willing to experiment with technology. Data supplied by some 2,000 companies -- more than 300 in-production users and 1,500 who are testing its system -- will provide PingCAP with what Matrix Partner Kevin Xiong says is akin to a supply of ammunition.“You need bullets to train someone to become a stellar marksman, and PingCAP right now has a lot of bullets,” said Xiong, who invested in the company.Huang points to how PingCAP’s database helped tide over Chinese bike-sharing giant Mobike during stressful days when user and transaction numbers exploded on a daily basis -- at its peak in 2017 the company said it handled as many as 30 million rides a day.“It was a really challenging time for us, and [open-source database] MySQL was no longer able to meet our demands given the jump in data volume,” said Li Kai, a senior tech director at Mobike. “PingCAP really helped us big time.”Huang and his team also made it easy for IT departments to jump ship. With one key stroke, companies could export their entire database on MySQL over to PingCAP’s. Some are considering moving their most sensitive data including transactions and customer info over, Huang said without disclosing names.Yu Zhenhua, an IT manager at Bank of Beijing, said China is constantly trying to enhance information security while his industry wants to lower costs as it rapidly expands. “TiDB’s service meets the demands of what we want in a distributed database manager,” Yu said in a statement posted on PingCAP’s website. A representative for the lender didn’t respond to emailed queries about its collaboration.Longer term, PingCAP wants to venture beyond China -- but there, the geopolitical spat is proving an impediment. Earlier this year, PingCAP was ready to embark on an expansion into the U.S. and said it was already in discussions for getting some prominent tech startups to use its software. Now the prospects of winning over American clients are clouded.“We’re not seeing any immediate impact on our business in the U.S. but the trade war does force us to look at the long term uncertainties of getting important U.S. clients in finance or tech to move to our platform,” Huang said.\--With assistance from Olivia Carville, Nico Grant, Lucas Shaw and Gao Yuan.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Colum Murphy, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times15 hours ago

    How Alibaba’s succession plan has paved the way for Jack Ma’s exit

    Last week, less than a year after Mr Ma announced his departure, Alibaba said that Maggie Wu, chief financial officer, would take on strategic investments, working alongside Mr Tsai. Messrs Ma and Tsai are inextricably linked with the company, which has grown to a market capitalisation of $400bn-plus and last year generated revenues of $56bn.

  • Louis Moore Bacon's Top 5 Holdings as of the 1st Quarter
    GuruFocus.comyesterday

    Louis Moore Bacon's Top 5 Holdings as of the 1st Quarter

    Guru’s largest position is an ETF tracking Chinese equities

  • Amazon’s Merchants Are Feeling the Pain of a Trade War With China
    Bloombergyesterday

    Amazon’s Merchants Are Feeling the Pain of a Trade War With China

    (Bloomberg) -- Over the past several years, Shanghai entrepreneur Yung Lin has built a decent business selling wrenches, screwdrivers and other tools on Amazon.com. Then President Donald Trump imposed tariffs on thousands of goods made in China, and Lin faced a difficult choice: eat the additional cost or try and pass it onto his mostly American customers. He chose to raise prices and watched sales of some products dive by as much as one third in just two weeks. Amazon.com Inc. merchants around the world are scrambling to navigate an unpredictable trade war that’s upending their proven business model of buying inexpensive goods in China and selling them at a markup in the U.S. The problem is particularly acute now as Trump weighs another $300 billion worth of tariffs, many on consumer goods.Mom and pop sellers won’t be able to wait for Trump’s decision: They have to place factory orders now and figure out pricing if they want to get their goods made in time for the lucrative Christmas shopping season, when they make as much as half their annual revenue. The most obvious solutions—raising prices, shifting production to other countries, stockpiling inventory—all have costs and complications of their own.These businesses—many of them one-person shops—are especially vulnerable because they lack big companies’ wherewithal to ride out the uncertainty as well as the negotiating power to shift tariff costs onto their suppliers. “The smaller companies have a significant problem,” says Joel Sutherland, Managing Director of the Supply Chain Management Institute at the University of San Diego. “We have an administration that says one thing today and does something else tomorrow, which poses tremendous risks.”Amazon is more insulated than the merchants in the near term but it too could take a hit if sales slow and cut into the commissions and fees the company charges merchants to use its online store. The shares were down less than 1 percent at 12:08 p.m. in New York.Much depends on whether the U.S. and China can come to terms. Trump will meet Chinese President Xi Jinping for the G20 summit in Osaka, Japan, on June 28-29, and both sides have agreed to resume trade talks after a weeks-long stalemate. But even if they hammer out an agreement, the trading relationship between the world’s two largest economies probably will never be the same.“We’re going to assume the tariffs are here to stay,” says Chuck Gregorich, who sells China-made hammocks, patio furniture and 2,000 other products on Amazon. “We can’t have this happen in a year or two and get caught with our pants down again.”Like many other importers, Gregorich tried to move up orders early last year to beat a Jan. 1 tariff hike on Chinese imports from 10% to 25%. He wound up spending an extra $400,000 on shipping only to see the tariff hike delayed. Burned once by the guessing game, Gregorich  is looking to shift about 30% of his production to factories in Vietnam and elsewhere. He’s not alone. Many other Amazon merchants are considering having their goods made in India, Southeast Asia and Central America. Michael Michelini relocated to China from New York  in 2007 to make Italian coffee presses and upscale bar supplies for U.S shoppers. Eight months ago he decided to move with his wife and kids to Thailand, where he’s working with a new factory to develop a line of high-end kitchenware. “Now when I think of China, I think of risk,” he says.Moving isn’t easy, however. Merchants say finding the right factory, securing raw materials and conducting product quality testing can easily eat up a year. Jerry Kavesh sells cowboys boots and hats on Amazon and recently spent months locating a factory in India that could make his products. But Kavesh discovered he would still have to import raw materials from China, negating any advantage. So as a last resort, he’s cutting his holiday inventory by about 15% and raising prices by about 12%, which he figures will spook enough customers to hurt sales.“When I hear the [U.S.] administration say just move, that's just not realistic,” says Kavesh, the chief executive officer of 3P Marketplace Solutions. “You can’t just suddenly turn all of your production over to someone new.”Even as U.S. sellers try to diversify their manufacturing base, their Chinese counterparts are looking for new customers in Europe, Japan and Australia to offset the potential hit to their U.S. business. “If you are a Chinese seller, money is money,” says Eddie Deng, a former Alibaba Group Holding Ltd. strategist who now runs an online clothing brand called Urbanic that sells Chinese-made, Western-style clothing in India. “It doesn't matter if it's from the U.S., India or the Middle East.”Amazon has said little publicly about the trade war. It wasn’t among 600 businesses including Walmart and Target that wrote the Trump administration earlier this month seeking an end to the trade war because it’s bad for U.S. shoppers. Amazon is a member of the Internet Association trade group, which signed the letter.Behind the scenes, Amazon has agreed to pay some vendors up to 10% more for products affected by tariffs, according to two people familiar with the matter. “Companies of all sizes throughout the supply chain are adjusting to increased costs resulting from new tariffs,” Amazon said in an emailed statement. “We’re working closely with vendors to make this adjustment as smooth as possible.”But that help will apply only to products Amazon buys wholesale and resells itself. The mom and pops that sell directly to consumers on Amazon’s marketplace are on their own.The hardest part is the uncertainty—the temptation to parse Trump tweets in a mostly vain effort to divine the future. “This could all be a head fake,” says Steve Simonson, who sells Chinese-made home goods and electronics and has been scouting factories in India, Vietnam and Central America. “In two months, this could all go away and all of this time and work will be wasted.”(Updates with share price. A previous version of this story corrected name of university in the fourth paragraph.)To contact the authors of this story: Shelly Banjo in Hong Kong at sbanjo@bloomberg.netSpencer Soper in Seattle at ssoper@bloomberg.netTo contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Benzingayesterday

    China's Parcel Industry Still In High-Growth Mode Despite Macro Backdrop

    Surveys of business leaders in China tell a different story: the manufacturing Purchasing Managers' Index (PMI) is at 50.2, maintaining positive sentiment by a razor's edge. Despite the uncertainty and risk around the U.S. – China trade war, parcel companies like Yunda, STO Express, YTO Express, and SF Holding are benefiting from secular tailwinds like e-commerce growth and large investments from private capital.

  • Shanghai Composite and Shenzhen Component Diverge
    Market Realistyesterday

    Shanghai Composite and Shenzhen Component Diverge

    While Asian markets were mixed, China’s Shanghai Composite Index gained 0.21% to end on a positive note for five days in a row. However, the tech-heavy Shenzhen Component ended in the red today.

  • The Three Big Reasons to Buy Alibaba Stock Before the Trade War Ends
    InvestorPlaceyesterday

    The Three Big Reasons to Buy Alibaba Stock Before the Trade War Ends

    Shares of Chinese technology giant Alibaba (NYSE:BABA) have struggled over the past 18 months as investors have tried to grapple with slowing growth across China's economy and rising trade tensions between the U.S. and China, which threaten to accelerate the already naturally occurring China economic slowdown. Despite those big macroeconomic risks, the Alibaba stock growth narrative has remained resilient and healthy.Source: Charles Chan Via FlickrIndeed, the company has continued to fire off big revenue growth quarter after big revenue growth quarter.As such, the bull-bear debate on BABA stock has smart people on both sides. Bulls are saying Alibaba remains a big growth company that is being unfairly knocked down by trade war risks, which the company has proven largely resilient to. Bears are saying Alibaba is a slowing growth company that will continue to slow as those trade war risks build up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 I think the bulls are right on this one, for three big reasons:* Alibaba is a high-quality growth story that has enough secular growth tailwinds behind it to offset the mildly slowing economic expansion in China.* The economic slowdown in China is overstated, and China's digital economy is still rapidly expanding.* Alibaba stock is far too cheap considering its robust long term growth prospects.All in all, the bull thesis on BABA stock at this point in time looks pretty compelling. You have a high-quality growth stock, at the epicenter of a secular growth market, trading at a discounted valuation because of overstated slowdown concerns. That combination ultimately makes BABA stock look like a good buy here and now. Alibaba Stock and Quality GrowthFirst, and foremost, Alibaba is a high-quality growth story that has enough secular growth tailwinds behind it to offset the mildly slowing economic expansion in China.For all intents and purposes, Alibaba is the heartbeat of China's digital economy. The company operates the country's largest e-commerce platform, as well as the country's largest cloud business. That puts Alibaba at the intersection of two huge secular growth tailwinds - the rapid migration of commerce from the physical to digital channel, and the rapid migration of enterprise workloads from on-premise to cloud solutions.Those two secular growth tailwinds have been enough to offset the mildly slowing economic expansion in China. Although China's economy grew by just 6.6% in 2018 (the lowest rate in 28 years), Alibaba reported revenue growth last year and last quarter of over 50%. For the past several quarters, revenue growth has hovered in the 50-60% range. Thus, despite the slowing economic expansion in China, Alibaba has maintained its red hot growth trajectory.Net-net, it's safe to say that Alibaba is supported by secular tailwinds strong enough to keep this company on a winning trajectory for the foreseeable future. China's Digital Economy Is Still Rapidly ExpandingSecond, it's equally important to understand that China economic slowdown concerns are broadly overstated and that China's digital economy is still rapidly expanding.This starts with understanding that China's economy is slowing from a sky-high growth pace. China's economy did grow at its slowest pace in 28 years last year. But, the GDP growth rate was still 6.6%. The U.S. economy hasn't printed a GDP growth rate above 6% since 1984. In other words, while China's economy is slowing, it's still growing at what would be a 35-year high rate for the U.S.Further, China's digital and consumer economies still remain hugely under-penetrated relative to the digital and consumer economies of developed countries. China's GDP per capita, income per capita, and expenditures per capita are all just a fraction of what they are in developed countries like Germany, the UK, and the U.S.By a fraction, I mean 10-25%, so very small relatively speaking. Further, China's internet penetration rate is just 60%. Across North America and Europe, internet penetration rates are closing in on 90%.Broadly, then, China's digital and consumer economies remain hugely under-penetrated and have a long runway ahead to keep expanding. That's why China's ecommerce sales are expected to rise at a 15%-plus rate for the next several years. Alibaba is the heartbeat of that ecommerce market, and as such, finds itself at the epicenter of a still red-hot secular growth market. Alibaba Stock Is Too CheapThird, it's important to understand just how cheap BABA stock is relative to its long term growth potential.Alibaba is a 50%-plus revenue growth company. Across the entire China internet landscape, you'd be hard pressed to find a company that has consistently grown revenues at a 50%-plus pace for the past several quarters.The only other name that comes to mind is Bilibili (NASDAQ:BILI). The difference? Bilibili is expected to do revenues of less than $1 billion this year. Alibaba's projected sales this year measure over $70 billion.Thus, Alibaba is an unparalleled combination of big growth and big size. This big growth should persist given the company's secular growth ecommerce and cloud tailwinds. Also, Alibaba is at the epicenter of the rapidly expanding China digital economy.Margins are starting to stabilize after several quarters of compression. Big growth-related investments are fading out and paying off. This dynamic will persist. Continued big revenue growth over the next several years should be accompanied by healthy margin expansion.Net-net, I see Alibaba as a 20% revenue grower over the next several years, with profit margins that should gradually expand from today's depressed base. Ultimately, that paves a visible pathway for EPS to run towards $20 by fiscal 2026.Based on a market average 16 forward multiple, that equates to a fiscal 2025 price target for Alibaba stock of $320. Discounted back by 10% per year, that implies a fundamentally supported fiscal 2020 price target of roughly $200. Bottom Line on Alibaba StockAlibaba is a high-quality growth story at the epicenter of a secular growth market. That positioning gives the company tremendous long term profit growth potential. Alibaba stock presently trades at a discount to that big profit growth potential.The result? Big growth will eventually and inevitably converge on a discounted valuation. When it does, BABA stock will fly towards $200.As of this writing, Luke Lango was long BABA and BILI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post The Three Big Reasons to Buy Alibaba Stock Before the Trade War Ends appeared first on InvestorPlace.

  • Does Trumponomics Signal the End of Made-in-China Era?
    Market Realistyesterday

    Does Trumponomics Signal the End of Made-in-China Era?

    China has grown at a breathtaking pace over the last couple of decades. The growth has been led by a couple of drivers, namely higher infrastructure investments and rising exports. Now, the infrastructure and investment-led model have their own limitations.

  • Alibaba Collaborates With Yiwu to Build SME Trading Platform
    Zacksyesterday

    Alibaba Collaborates With Yiwu to Build SME Trading Platform

    Alibaba Group Holding (BABA) plans to open an e-commerce trade hub in Yiwu in a bid to set up a trade platform for small players in global trade.

  • Nio Stock Increasingly Looks Like It’s Worth Revisiting
    InvestorPlaceyesterday

    Nio Stock Increasingly Looks Like It’s Worth Revisiting

    When Nio Inc. (NASDAQ: NIO) reported first-quarter unit sales that exceeded its prior delivery targets last month on May 29, shares closed at $3.61 that day. Nio stock finally bottomed at around $2.38 by mid-June and is appearing to benefit from the stock market rebound. What are the odds that the Chinese electric vehicle supplier sustains the stock uptrend and rewards shareholders?Source: Shutterstock Nio Reports Strong First-Quarter Unit SalesNio delivered 3,989 ES8s, its high-performance premium electric SUV, in the first quarter. Previously, the company forecast a delivery target of between 3,500 and 3,800. It delivered 16,461 units for the year-to-date period ended April 30. * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 While investors appreciated the strong performance despite seasonal headwinds led by the Chinese New Year holiday slowdown, business worsened afterward. Nio now expects a sequential decline in deliveries for the second quarter. It cited ongoing U.S.-China trade war concerns and a sluggish Chinese auto market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEV subsidy cuts are bigger than Nio previously expected. The 40% drop in subsidies, from RMB 67,500 (US $9,850) to RMB 40,500 (US $5,900) will hurt sales. Starting June 26, subsidies will fall further to just RMB 11,520. In effect, the subsidy is no longer a positive catalyst for Nio unit sales.The availability of the sportier, less expensive ES6 sedan will hurt ES8 SUV sales. As expected, Nio will align its operating cost structure to the lower demand. In Q1, it already cut R&D spend by 28.8% sequentially. SG&A spend fell 32.2% sequentially. The cuts are necessary and should slow the quarterly operating losses.Still, the shrinking operations also signal that the company will not grow as fast as investors previously thought. Nio shares are already down 34% in the last month. The 51% drop in the quarter is exaggerated. In that period, the stock spiked to the $10 - $13.80 level after getting positive but meaningless coverage from 60 minutes.Nio cut its headcount by 4.5% in Q1 and now has 9,390 employees globally, down from 9,834 at the end of 2018. Future Expectations and Nio StockNio has over 12,000 ES6 pre-orders. It added 5,000 from its exposure at the Shanghai Auto Show. But with business slowing, Nio will also right-size its service networks. It plans to shift its focus to smaller Pop-up Houses. This should lower operating expenses while keeping its sales and marketing coverage unchanged.Its 125 NIO battery swap stations throughout the country are not likely to change. And the 500 Nio Power Mobile on the road should give current and future customers enough support.Nio showcased its next-generation ET7, a high-performance premium electric sedan at the Shanghai Auto Show. Built on NP2 (Nio platform 2.0), the EV will have Level 4 autonomous driving capabilities. The company did not offer any timeline for ET7. Given the current slowdown for selling existing models, it is in no hurry to bring the new model to market. Headwinds for Nio StockAlthough unit sales improved in the first quarter, Nio still reported a negative gross margin of 13.4%. Total revenue fell 52.5% from last year to $243.1 million. Year-over-year SG&A and R&D expenses rose 71.5% and 55.4%, respectively, adding to the $390.9 million loss in the first quarter.Nio cannot accurately predict how many ES6 units it will sell for the full-year 2019. Investors must watch the demand levels for ES6 at launch first. If it reports strong sales momentum, Nio will be in a better position to forecast sales for the year.The company set a high priority for expanding its sales channels. By offering more test drives to the public, Nio might sustain better selling volume. Conversely, cutting marketing spending at a critical period of its growth could hurt its long-term prospects. Your Takeaway on Nio StockNio shares rose slightly in the last week but could fall again if market optimism fades. Much of the near-term upside depends on the U.S. and China resuming trade talks.Predicting how the talks will progress is impossible. Investors might do better speculating on trade talks by holding bigger names like Alibaba Group (NYSE: BABA). Still, Nio has a flashy product and could potentially grow market share in China in the long-term.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Nio Stock Increasingly Looks Like It's Worth Revisiting appeared first on InvestorPlace.

  • If iQiyi Stock Is The Netflix Of China, Why Doesn’t It Perform Like It?
    InvestorPlaceyesterday

    If iQiyi Stock Is The Netflix Of China, Why Doesn’t It Perform Like It?

    Despite the hype of being "the Netflix (NASDAQ:NFLX) of China," there has been no love for iQiyi stock (NASDAQ:IQ).Source: Shutterstock Netflix went from a market cap of less than $50 billion at the start of 2016 to more than $160 billion now. That's a three-year triple -- and not including the fact that entering 2010, its market cap was about $3 billion. Jeez, did most of us miss an opportunity or what?That's exactly why I'm perplexed with the underperformance of IQ stock. It's like another opportunity to invest in Netflix from an early start. Granted iQiyi stock has a market cap of about $13 billion, but that's still less than a tenth of the size of NFLX.InvestorPlace - Stock Market News, Stock Advice & Trading Tips iQiyi Stock as the Next NetflixLast quarter, iQiyi grew revenue 43% year-over-year to $1 billion. While it lost 35 cents per share, that was 17 cents less than the 52 cents per share that analysts had expected. Despite four straight bottom-line misses, a sales and profit beat wasn't enough to woo Wall Street.Granted, this came in mid-May when the market was getting crushed and just two weeks after President Trump sent a trade-war tweet that reverberated throughout global markets. In the rebound from the month-long equities tailspin, we haven't seen the same recovery in IQ stock price as we have in other names. * 6 Stocks Ready to Bounce on a Trade Deal Further, losses aren't be shrugged off like they were for Netflix. Even though this quarter's bottom-line results were ahead of expectations, the losses almost doubled year-over-year. Operating margins slipped, too. I was wrong to think the market would overlook these losses, although I think if the trade-war rhetoric was not present, iQiyi stock price would be rallying, not falling. Or at the very least, it would be stable.iQiyi is a blend between Netflix and Alphabet's (NASDAQ:GOOGL) YouTube and if it were a well-known American entity, its valuation would be double or triple what it is now. Last quarter, total subscriber count grew to 96.8 million, up 58% year-over-year from 61.3 million. That's immense growth and shows just how big the addressable market is in China.For comparison purposes, NFLX has 148.8 million subs. Comparatively, IQ has 65% of Netflix's sub count and is growing rapidly, yet just 8% of the valuation. IQ Stock HeadwindsThe stock is caught in the trade-war crossfire, among other headwinds. While IQ stock isn't directly buffeted by tariffs and production, the Chinese economy is. Further, the stigma attached to Chinese equities isn't doing the stock price any favors. The same can be said for Alibaba (NASDAQ:BABA), Baidu (NASDAQ:BIDU) and others.I think iQiyi stock is a solid long-term, speculative bet on streaming. Specifically, Chinese streaming, where the country's population is roughly four times the size of the U.S. It's worth mentioning that Netflix is not allowed in China and therefore it essentially eliminates what would be IQ's largest competitor.If the trade war situation is eliminated, then Chinese stocks and IQ could be back in favor among investors. Aside from that though, it's clear investors want to see better cost control from management. If they can tighten up spending without sacrificing growth, this stock could explode higher. Particularly with some trade war resolution.Estimates call for revenue growth north of 23.5% both this year and next. They also call for losses each year. Better-than-expected bottom-line results could change sentiment a hurry. Trading iQiyi Stock Price Click to EnlargeI'm not a big head-and-shoulders trader, but one could make a case that iQiyi stock price is putting an inverse setup at the moment. That could set the stage for a bullish trade if and when it gets back to the neckline (black line, above). * 7 Value Stocks to Buy for the Second Half Whether it's setting up in that fashion or not doesn't really matter in the short term, given that it has so many hurdles in the way right now.First, IQ stock price needs to hold $18. Below puts its monthly lows of $17.18 on the table, where a break below could send IQ into no man's land toward the year-to-date lows. Provided it holds as support, it will have to contend with the declining 20-day moving average, which is currently weighing on the stock.Above that brings up the backside of prior downtrend support (blue line) and the declining 50-day moving average. It's tough trend after tough trend and it won't be an easy road for the bulls. Bottom Line on IQ StockWhat's the best-case scenario for IQ stock investors? Some of the catalysts discussed above. Solving the trade-war dilemma and a promising quarter or two of earnings could go a long way to repairing the technical damage on the chart -- and doing so in a hurry.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOOGL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post If iQiyi Stock Is The Netflix Of China, Why Doesn't It Perform Like It? Â appeared first on InvestorPlace.

  • Carrefour Sells Control of China Business at a Discount
    Bloombergyesterday

    Carrefour Sells Control of China Business at a Discount

    (Bloomberg) -- Carrefour SA has agreed to sell an 80% stake in its China unit for 4.8 billion yuan ($698 million) in cash to local retailer Suning.com Co. as it rethinks its exposure in the world’s No. 2 economy after years of decline.The yielding of control comes after a long search for a partner for the French company’s struggling Chinese operations. Once the premier foreign supermarket chain locally, it failed to adjust to the onslaught of e-commerce in recent years and sales slumped.The shares rose as much as 2.9% early Monday in Paris.Carrefour will retain a 20% stake in the China business, which generated net sales of 3.6 billion euros (28.5 billion yuan) in 2018. It will also get two seats out of seven on the China unit’s Supervisory Board, according to a statement Sunday. The valuation of Carrefour’s China unit at 0.2 times its 2018 sales -- compared to an industry average of 0.8 times -- is at a “significant discount to peers likely due to poor financial results,” said Citigroup Inc. analysts led by Lydia Ling in a note Monday.“The consolidation in store network, supply chain, logistics and membership could improve efficiency and profitability for both parties,” said the Citi note.A growing number of European and American retailers are either scaling back their presence or tying up with local partners in order to stay competitive in China, where e-commerce penetration is one of the highest globally. Walmart Inc., which has a network of around 400 supermarkets, relies on JD.com Inc. for its delivery service, while Germany’s Metro AG is said to be trying to offload a majority stake in its Chinese business.“The big problem for Carrefour and other western grocery chains is that they have major challenges in their home countries and can’t afford to grow in China,” said Pascal Martin, a Hong Kong-based partner at OC&C Strategy Consultants. “In China, if you want to grow in the groceries space, you have to continue to invest capital in less developed cities.”End of an EraIt’s the end of an era for one of the first foreign brands to gain a loyal following among Chinese consumers. Carrefour entered the country in 1995, ahead of Walmart, and its massive hypermarkets where one could buy fresh pork along with a TV ushered in a new style of shopping for a country just opening up to the outside world.But it has struggled to maintain profitability as buyers moved online rapidly in recent years, a shift that’s favored home-grown giants like Alibaba Group Holding Ltd. Despite efforts to digitize its operations, and an initiative to rent out store space to local retailer Gome Retail Holdings, Carrefour’s China sales declined about 10 percent last year to 3.6 billion euros, according to the company’s annual report.Earnings before interest, tax, depreciation and amortization were 66 million euros or 516 million yuan last year. It operates 210 hypermarkets and 24 convenience stores in China currently.The transaction represents an enterprise value of 1.4 billion euros ($1.6 billion) for Carrefour China. For Nanjing-based Suning, primarily an electronics retailer, the deal will help it cut procurement and logistics costs and boost profitability, the company said in a statement Sunday. Its Shenzhen-listed shares rose as much as 6.5% in early trading on Monday as investors rewarded the retailer for closing the deal at a low price.Alibaba holds a 20% stake in Suning and the two companies are closely allied. They’ve been investing in brick-and-mortar retailers with the goal of building an empire where offline and online shopping are seamlessly integrated. Earlier this year, Suning bought 37 department stores from Wanda Group, while Alibaba paid $2.9 billion in 2017 for a 36% stake in Sun Art Retail Group Ltd., China’s biggest supermarket chain. The Carrefour deal is likely to strengthen Alibaba’s foothold in the fiercely competitive groceries market in China.The acquisition has been cleared by Carrefour’s board and is expected to close by year end, but still needs approval from the Chinese regulator, said the companies.Carrefour’s decision to retain a 20% holding shows how China remains a strategic market for global retailers. Keeping that stake will allow it to maintain a foothold in an innovative retail market, a company spokeswoman said Sunday.(Updates with shares in third paragraph.)\--With assistance from Robert Williams.To contact Bloomberg News staff for this story: Geraldine Amiel in Paris at gamiel@bloomberg.net;Daniela Wei in Hong Kong at jwei74@bloomberg.netTo contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, Bhuma ShrivastavaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Bitter Contest for China’s Online Shoppers
    Bloombergyesterday

    The Bitter Contest for China’s Online Shoppers

    (Bloomberg Opinion) -- Carrefour SA, Europe's largest retailer,  may be the latest Western company to pull back from China. It’s unlikely to be the last.On Monday, the hypermarket operator said it would sell 80% of its China business for 4.8 billion yuan ($699 million) in cash to Suning.com, the Chinese retailer backed by Alibaba Group Holding Ltd. Carrefour will retain a 20% stake. Over the past few years, the French company’s plans to shrink its China footprint has been one of the worst-kept secrets in banking. Though Carrefour sold the business pretty cheaply – with a valuation of 0.2 times 2018 sales, compared with the industry average of 0.84, according to Citigroup Inc. – loosening its ties to the mainland may be a smart move, whatever the price. With sales in the country flagging and losses piling up, the deal comes as China’s macroeconomic picture is also darkening.Yet the key challenge for Carrefour preceded the trade war. In recent years, online-only players such as Alibaba have been piling pressure on brick-and-mortar operations, with Tesco Plc, Best Buy Co. and Marks & Spencer Plc each announcing plans to pull back from the mainland market. Carrefour’s share of the country’s hypermarket segment fell to 4.6% last year from 8.2% in 2009, Citi writes.(1)   That’s a problem in a country with one of the world’s biggest rates of e-commerce penetration. China's online retail sales reached 3.86 trillion yuan in the first five months of this year, accounting for more than one-fifth of the country's total purchases of consumer goods, according to a recent report by the Chinese Academy of Social Sciences. To make matters worse, foreign brands no longer have the cachet they once enjoyed – at least in low-end consumer goods. In a survey last year, Credit Suisse AG said that Chinese consumers preferred domestic purveyors in categories like food and drinks and home appliances. With the trade war whipping up nationalist fervor, that trend may accelerate: The bank's latest poll of shoppers 18 to 29 years old showed that 41% preferred phones made by Huawei Technologies Co., up from 28%, while interest for Apple Inc.’s products fell to 28% from 40%.For many firms, ceding control to a local partner is probably the best way forward. Carrefour appears to be borrowing a page from the playbook of McDonald’s Corp., which sold 80% of its China business in 2017 to a tie-up between state giant Citic Group Corp. and private equity firm Carlyle Group LP.Or consider Walmart Inc., which sold its e-commerce delivery site to JD.com Inc. in 2016 in exchange for a stake in the Chinese retailer. The U.S. firm now aims to open 40 of its Sam’s Club stores in China by 2020. Costco Wholesale Corp. is also betting on China’s appetite for bulk buying, with plans to open its first bricks-and-mortar store in August. Whether Costco can pull this off without a local partner remains unclear.What is clear is that Carrefour won’t be the last retailer to rethink its China strategy. Germany's Metro AG is also looking to sell its $1.5 billion Chinese business. At a time when Chinese acquisitions overseas have dried up, bankers at least can thank Western firms for managing to drum up some business from the mainland. (1) The bank citesEuromonitor International research.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Alibaba and JD.com Want to Lock in Merchants With Big Data Deals
    Motley Fool3 days ago

    Alibaba and JD.com Want to Lock in Merchants With Big Data Deals

    China’s two biggest e-commerce players are tethering more brands to their platforms with data services.