|Bid||169.68 x 900|
|Ask||169.75 x 1400|
|Day's Range||169.00 - 176.23|
|52 Week Range||129.77 - 195.72|
|Beta (3Y Monthly)||1.89|
|PE Ratio (TTM)||48.36|
|Earnings Date||Oct 31, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||222.64|
Chinese-owned video-sharing app TikTok, which has exploded in popularity globally, has recently come under fire for censoring content that Beijing deems unacceptable.
In the October 18 trading session, Alibaba Group Holding Limited (BABA) stock is trading at $170.14, down 3.79% from the previous session.
Old Mutual selects Amazon's (AMZN) AWS as the preferred cloud provider, which highlights the reliability of the company's cloud computing services.
Here's why retail stocks may stage a holiday spending season breakout. Shop for some trading opportunities using these three retail ETFs.
Some business leader say that if you choose to do business in China, you have to play by China’s rules—or expect consequences when you don't.
(Bloomberg) -- MercadoLibre Inc. will “for sure” invest more than 3 billion reais ($718 million) in Brazil next year with a focus on financial services and logistics, Chief Operating Officer Stelleo Tolda said.MercadoLibre, the e-commerce pioneer in Latin America now worth $28 billion, plans to invest more in its financial services and payments unit while opening more distribution centers and seeking partnerships to cut delivery time further, Tolda said in an interview at Bloomberg’s Sao Paulo office.The early guidance on outlays for next year follows investments of 2 billion reais in Brazil last year and 3 billion reais this year. As competition heats up from the likes of Amazon.com Inc. and local retailers including Magazine Luiza SA and B2W Cia Digital, MercadoLibre is defending its market share of about 33% and looking to get customers to lean heavier on its services for day-to-day shopping and payment solutions, Tolda said.“We strongly believe in the growth potential of this business, so it’s too early to focus only on profitability,” said Tolda, who met MercadoLibre’s founder Marcos Galperin at Stanford University in the late 90‘s and has been leading the Brazil business since the start, 20 years ago.MercadoLibre, based in Buenos Aires but with operations in 18 countries and shares trading in New York, is offering same-day delivery in Sao Paulo and looking to expand its next-day delivery to at least 16 cities in 2020.The firm currently operates two distribution centers near Sao Paulo and will open facilities in other regions, to speed up its delivery in a country larger than the continental U.S.Brazilian e-commerce has more than doubled to 68.8 billion reais between 2013 and 2018 and should almost double again through 2023, according to market researcher Euromonitor International.The newest focus for the company is on the fast-moving train of fintech services courting large parts of the population without bank accounts.MercadoPago, the payments platform, has been leading growth at the company. The number of transactions more than doubled year-on-year in the second quarter with the value surging 47% to $6.5 billion. That compares to $3.4 billion in gross merchandise value from the marketplace.“We see opportunities not only in payments, but also in all financial services, including credit, investments and eventually insurance,” Tolda said. “MercadoPago is also the way through which we believe we’ll have higher recurrence in people’s lives.”MercadoLibre needs to invest in marketing for the MercadoPago brand and search out companies to provide payment solutions and individual customers to use the virtual wallet. Offering payment with cards as well as with QR codes, MercadoPago has already cut deals with a wide variety of brick-and-mortar companies in Brazil such as gas stations, drugstores and the Sao Paulo subway.MercadoLibre doesn’t plan to spin off the financial products unit, which it sees as a way to increase interactivity with customers and attract shoppers into its e-commerce platform, Tolda said. Currently, the average Brazilian e-commerce consumer buys an item per month and MercadoLibre wants to intensify the frequency of purchases to at least once a week, Tolda said.The company recently opened new categories of no-gender fashion and sustainable products in its e-commerce platform to attract younger consumers. It also plans to expand next-day delivery to 16 larger cities, from eight currently, after closing a deal with the cargo unit of airline Azul SA that could help reduce its dependence on the country’s post offices.MercadoLibre has surged 93% year-to-date to $566 on the Nasdaq. That compares to 18% for Amazon, 28% for Alibaba Group Holding and 39% for EBay Inc.After raising $1.9 billion earlier this year, including a big chunk of it from PayPal Holdings Inc., MercadoLibre is focusing on investment in its core businesses rather than any bold new acquisitions, according to Tolda. Talks are ongoing with PayPal on how to collaborate in several areas despite being competitors.“Theirs is a traditional online payment model, and we’re seeing even greater potential offline than online,” with MercadoPago, Tolda said. “It’s an interesting path, this idea of ‘frenemy,’ that exists in the technology market.”To contact the reporters on this story: Fabiola Moura in Sao Paulo at firstname.lastname@example.org;Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: Daniel Cancel at firstname.lastname@example.org, ;Nick Turner at email@example.com, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Ant Financial Services Group is seeking a syndicated loan of up to $3.5 billion at a lower rate, joining other Chinese technology giants in their bid to slash debt costs.The company is in talks with lenders for a $2.5 billion financing that comes with a $1 billion greenshoe option, according to people familiar with the matter. The price talk for the three-year loan margin is less than 100 basis points over Libor, said the people, who are not authorized to speak publicly and asked not to be identified. The company didn’t immediately respond to emailed requests for comment.Billionaire Jack Ma’s Ant Financial last came to the syndicated loan market in 2017, raising a $3.5 billion three-year facility that pays a margin of 135 basis points over Libor, according to Bloomberg data. The latest funding plan comes amid a refinancing spree for Asian tech firms as they take advantage of abundant liquidity from lenders in the wake of fewer loan deals in the region.Smartphone maker Xiaomi Corp. is in talks for a $1 billion refinancing at its lowest rate after Chinese social media giant Tencent Holdings Ltd. clinched its biggest and cheapest dollar-based facility in August. Ant Financial’s affiliate Alibaba Group Holding Ltd. completed an amendment and extension of its $4 billion loan in May.Ant’s new loan, if completed, will be used for general corporate purposes, the people said. The company is formally known as Zhejiang Ant Small & Micro Financial Services Group Co.\--With assistance from Apple Lam and Carol Zhong.To contact the reporters on this story: Annie Lee in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Neha D'silva at firstname.lastname@example.org, Chan Tien HinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Japanese conglomerate has been ravaged in recent months by a toxic brew of bad investments and terrible press. LightShed Partners lays out the bull and bear cases.
Theoretically, it was the news that Wall Street was anxiously seeking. After a protracted trade war between the U.S. and China that left neither side as the clear victor, investors were ready to move forward with a productive relationship. Of course, one of the biggest beneficiaries would be China-based investments, such as JD.com (NASDAQ:JD) and JD stock.Source: testing / Shutterstock.com Following a series of tense negotiations between American and Chinese delegates last week in Washington, President Donald Trump made an announcement: critically, the two sides have agreed to a temporary truce, which he has termed a "phase one deal." According to a CNBC report:As part of that deal, China will address intellectual property concerns raised by the U.S. and buy $40 billion to $50 billion worth of U.S. agricultural products. In exchange, the U.S. agreed to hold off on a tariff hike set for this week.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAgain, on surface level, the news bolsters the argument for JD stock. Additionally, the apparent warming of relations opens the possibility of comebacks for major Chinese companies, such as Alibaba Group (NYSE:BABA) and Tencent (OTCMKTS:TCEHY). At least as far as stakeholders of JD.com are concerned, shares moved higher on last Friday's session, as well as on Monday. * 7 Tech Stocks You Should Avoid Now But is this announcement enough to get those on the sidelines to believe in JD.com? Despite the positive implications of this truce, the markets were unimpressed, turning in a muted performance.Ultimately, I believe this was due to a lack of credibility. As we see with the wild gyrations with JD stock since spring of this year, trade negotiations have been all talk and little meaningful action. Based on the headlines, I wouldn't chase JD.com here. JD.com Is Stuck in a Cloud of UncertaintyOver the years, Chinese stocks have generated considerable interest stateside. However, the one critical factor in China's massive growth is the U.S. As the world's largest exporter, China requires a robust relationship with American corporations and consumers.Of course, with a more lasting trade deal, the optics for JD.com stock improve significantly. But what's telling is that only one side - the Trump administration - expresses definitive optimism. According to China Daily, the country's official state-owned English-language newspaper:While the negotiations do appear to have produced a fundamental understanding on the key issues and the broader benefits of friendly relations, the Champagne should probably be kept on ice, at least until the two presidents put pen to paper.That doesn't sound like a trade deal is imminent. In my view, the Chinese government is leery about President Trump's seemingly erratic behavior. At least in this regard, I don't blame them. I'm also not surprised that JD stock really hasn't moved since the end of March.Now, it's true that China has attempted to diversify its economy. In recent years, the government has introduced monetary, structural and fiscal reform to help transition an export-driven economy into a consumption-drive one. On paper, this should give China the edge in this current geopolitical conflict.But in order for this strategy to work effectively, the Chinese consumer must be strong. And that's exactly what it's not, according to Victor Shih, Ph.D., associate professor of political economy at the University of California, San Diego. In an email correspondence, Shih described that the average Chinese households "are trapped between much higher food prices and uncertainties about future income."Such a negative dynamic will put off discretionary spending. Naturally, this is a net negative for JD stock. Avoid JD Stock Until a Deal Is DoneMoving forward, we have two basic ways to play JD.com stock: gamble on the signing of a permanent trade deal or stay on the sidelines until you know for sure.If you're not a professional trader, you're better off waiting. For one thing, Trump is an unpredictable world leader. His recent actions in Syria angered Christian evangelicals, who largely represent ardent support for his administration.That shows you that Trump is a "my way or the highway" type of leader. And gambling on that is always a tough business.Second, I don't like the variables that the upcoming election poses for the trade war. As I've argued before, the president cannot look weak to his conservative base. Wavering on China, an issue which has dogged both the Obama and Bush administrations, carries significant risk.Therefore, I see more chances of things going badly for JD stock than the other way around. The smart move is to wait for this noise to fade, if it fades at all.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post JD.com Needs a Real Deal Between the U.S. and China appeared first on InvestorPlace.
On Sept. 19, 2014, Alibaba Group (NYSE:BABA) went public. In what still is the biggest U.S. IPO of all time, Alibaba stock priced at $68. It closed on its first day at $93.89, a healthy 38% pop.Source: BigTunaOnline / Shutterstock.com On Jan. 6, 2017, Alibaba stock again closed at $93.89. It had spent some 26 months trading mostly sideways, in fact dipping below its IPO price during the early 2016 broad market correction.But this time, $94 was a buying opportunity. Within three weeks, BABA stock was above $100, and never would dip into the double-digits again. The rally continued at an aggressive pace: BABA cleared $200 in less than 18 months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Staging Huge Reversals Since then, however, the range-bound trading that marked BABA stock's first two-plus years on the public markets has returned. Monday's close of $171.16 puts the stock back to where it traded in August 2017 -- a little over 26 months ago.Investors who have long waited for Alibaba stock to finally rally again might hope that history will repeat. The problem at the moment is that, timing aside, it's not at all clear why or how that can happen. Is the Trade War to Blame for the Pressure on BABA Stock?Fundamentally, Alibaba stock looks cheap. It trades at an even 20x FY21 (ending March) consensus EPS. That low multiple comes despite the Street projecting 26% earnings growth next year, on top of a 23% increase this year.The 20x multiple doesn't even include potential optionality, most notably through the company's 33% stake in Ant Financial. That payment company has provided minimal help to Alibaba earnings so far -- but raised money at a $150 billion valuation last year. Assuming that valuation holds, Ant would account for over 10% of the current market capitalization of Alibaba Group.A common answer as to why BABA stock trades so cheaply is the trade war. Investors may well be worried that the impact to the Chinese economy from U.S. tariffs will slow that growth. Move FY21 earnings from a current consensus of $8.65 to something closer to, say, $7.50, and now Alibaba stock trades at 23x forward EPS. That's a premium to U.S. megacap tech plays like Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) despite roughly similar growth in this scenario.But I'm skeptical the trade war necessarily is the key driver here -- or that a resolution of the dispute will lead to a sustained rally in Alibaba stock. After all, BABA's one big rally on the public markets began not long after the U.S. presidential election.Surely investors heard Donald Trump during the campaign. His plans likely seemed a potential negative for Chinese companies like Alibaba; indeed, BABA stock (unlike most U.S. equities) declined the day after Trump's surprise win. And rival JD.com (NASDAQ:JD) has rallied nicely this year amid trade war worries, even if it declined much further during the late 2018 sell-off.A surprise trade deal no doubt would give Alibaba stock a nice pop. But as with the market as a whole, it seems too simplistic to argue that investors will simply send the stock up 10% or 20% once the trade dispute is resolved. It seems reasonably likely that investors expect a resolution at some point, and thus aren't pricing long-term effects into Alibaba stock. Can Earnings Drive Alibaba Stock Higher?Alibaba shareholders might well look to earnings, due in about a month, as a catalyst for the stock. After all, Alibaba historically has performed well relative to expectations. That includes solid beats with both fiscal Q4 and Q1 earnings.But those beats have done little for BABA stock. Shares actually sold off following the fourth quarter report. A post-Q1 rally faded quickly.In fact, it seems like earnings, if anything, could be a negative for BABA shares. Investors expect hugely impressive numbers -- and even when Alibaba delivers, don't always reward the company for doing so. Good numbers probably aren't enough to bring skeptics in, while bad news can shake the confidence of impatient shareholders.If bad news is punished, and good news met with a shrug, then Alibaba Group could be in a tough spot ahead of next month's release. Trust in Alibaba GroupThe broader problem I've long noted with BABA stock is that many investors just don't trust the company. The transfer of Alipay (now known as Ant Financial) from Yahoo! (now Altaba (OTCMKTS:AABA)) and Softbank (OTCMKTS:SFTBY) raised real worries about shareholder rights. The Cayman Islands VIE setup spooks other investors.The way the company is currently constituted, and managed, means that Alibaba stock is going to get a persistent discount to U.S. names. Much of the argument around the stock centers on just what that discount should be. Is there a risk that one day, Alibaba simply removes the profit rights of Alibaba stockholders? Is Alibaba's accounting trustworthy?This problem can be ameliorated over time. With Jack Ma moving on, new CEO Daniel Zhang can put his own imprint on the company. Perhaps a trade war deal will open Chinese markets -- and allow for actual ownership in the company, not in a VIE entitled to some of its profits. (This was one of the hoped-for effects of the company's now-postponed Hong Kong listing.)But in the meantime, Alibaba stock still is a no-go for many investors -- and a stock with significant questions, as Ian Bezek pointed out this summer. That's not going to change any time soon.So what moves BABA stock higher? It's hard to answer that question, but maybe that itself is the answer. It's possible a rally will simply come once the stock gets too cheap, even for more risk-averse investors. After all, the rally that began in late 2016 didn't have a spark beyond higher optimism on U.S. stock markets after 26 months of sideways trading. The best near-term hope for BABA stock might be that history repeats on both fronts.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Two Years On, Alibaba Stock Still Lacks a Catalyst appeared first on InvestorPlace.
Cisco Systems (CSCO) is benefiting from its expanding footprint in the rapidly growing security market. Further, partnerships and accretive acquisitions will boost the company's revenue base.
When it comes to diversified tech giant Alibaba (NYSE:BABA), being an investor comes with its share of harassment. Nevertheless, it's time to watch for a capitalist opportunity now that a key battle line has been crossed.Source: zhu difeng / Shutterstock.com For U.S. investors, profiting in Chinese stocks has been more challenging these days. Many large-cap stocks and industry leaders in China ranging from Tencent (OTCMKTS:TCEHY), to China Mobile (NYSE:CHL), China Life Insurance Company (NYSE:LFC) or China Petroleum & Chemical Corporation (NYSE:SNP) have produced lackluster or negative returns in their U.S.-listed American Depository Receipts. And certainly the trade war has been a drag on stock performance.But Alibaba stock has been different. That's not to say it's been easy. Still, the fact is BABA has gained about 23% in 2019. The return is more than the S&P 500's climb of 18% and towers above U.S. tech giant Amazon's (NASDAQ:AMZN) 13% year-to-date increase.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why is Alibaba Stock Different?So, what is the deal with shares of BABA? Alibaba stock has and continues to defeat investors' fears within this macro-charged environment. Most recently BABA stock toppled Street profit and sales forecasts in mid-August. * 7 Beverage Stocks to Buy Now To be certain, there's always going to be something or someone trying to get investors to back away from buying Alibaba despite its successes. For some that might include recent reports the U.S. is considering delisting Chinese stocks. And that threat can't be entirely ignored. Or maybe fake merchandise sales in the past or allegations of accounting shenanigans have prevented investors from taking action in BABA stock?Okay, so there's plenty of reasons not to buy BABA shares. But obviously those arguments don't include price performance. Most important, Alibaba stock continues to come out on top despite headline warnings and a challenging market for Chinese stocks. Now and with BABA crossing an important battle line on the price chart, it's time to put shares on the radar for a well-timed purchase. BABA Stock Weekly ChartAs noted above, capturing BABA stock's gains of around 23% hasn't been a walk in the park. And as expressed, bad press isn't likely to just disappear. The better news is I also don't believe Alibaba's impressive rally is finished. I see a solid entry for a risk-adjusted purchase of BABA stock.The weekly chart shows that since failing from a breakout attempt to new highs last year, Alibaba stock has established a corrective symmetrical triangle base. It's not perfectly formed with clear-cut pivots to define the pattern, but the essence of this bullish formation is there.Following last week's price action, shares of Alibaba are in position to confirm a bullish engulfing candlestick which puts BABA stock back above the 50% retracement level of the base, as well as the triangle's apex line. With stochastics in a pullback set-up in neutral territory and on the verge of signaling a bullish crossover, the situation looks all the more promising. How to Trade AlibabaI'd recommend buying Alibaba shares above $174.88. This entry waits for the BABA stock price to confirm last week's candlestick and reinforces the bias for continued upside in the bullish triangle pattern. If BABA rallies, a breakout through angular resistance near $185 might be watched for adding shares on strength and before looking to take partial profits in-between $195-$215.For containing downside exposure in Alibaba stock, I'd keep an eye on the weekly stochastics to continue to support the position and set a modified stop-loss beneath $165 for a stronger risk-adjusted exit that offers sufficient evidence off and on the price chart for closing the trade.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Alibaba Stock is a Strong Buy Now -- More Than Ever Before appeared first on InvestorPlace.
(Bloomberg) -- Paytm is close to scoring $2 billion of new financing from investors including Jack Ma’s Ant Financial and SoftBank Group Corp., a person familiar with the matter said, describing a mega-deal that will raise the temperature in India’s increasingly heated financial payments arena.Rob Citrone’s Discovery Capital Management is also in discussions to join a funding round that values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The funding will be split evenly between equity and debt and is aimed at helping Paytm fend off an influx of rivals, the person said. Talks are in their final stages but the terms could still change, the person added.If a deal is finalized, Paytm could outstrip fellow high-profile Asian startups such as Grab and Gojek in valuation. Billionaire Paytm founder Vijay Shekhar Sharma is raising capital to protect the startup’s share of a potentially $1 trillion Indian payments market from newer entrants Facebook Inc., Alphabet Inc.’s Google and Walmart Inc.-owned Flipkart’s PhonePe. Over the past year, a string of new apps have made payments increasingly easy, bringing discounts and cash bonuses to young, smartphone-savvy users.Paytm remains the leader for now. The firm has in a decade become India’s biggest digital payments brand, attracting big names in investing from Alibaba co-founder Ma and SoftBank founder Masayoshi Son to Warren Buffett. Sharma got a huge boost in 2016 after India’s government moved to eliminate most of the nation’s paper money in circulation in a bid to curb corruption. His startup, a pioneer in the country’s nascent field, saw tens of millions of consumers and hundreds of thousands of businesses sign up for digital services in a matter of months.“India is a large market,” said Kunal Pande, head of financial services risk consulting at KPMG. “Digital payments adoption is growing quickly, yet there is room for massive growth as users get comfortable transacting digitally. The large business opportunity makes it attractive for both domestic startups and large global players.”Read more: Facebook and Google Chase a New $1 Trillion Payments MarketPaytm, which is also backed by Alibaba Group Holding Ltd., declined to comment in response to emailed questions. Ant had no immediate comment when contacted, while Discovery Capital and SoftBank declined to comment.Sharma is now extending his online empire into e-commerce and banking, even as others encroach on his turf. The Indian payments market remains a chaotic field where the rules are hazy on what players can offer, yet its promise has lured a string of competitors including Indian banks, its postal service and its richest man, Mukesh Ambani.Credit Suisse Group AG now estimates that the Indian digital payments market will touch $1 trillion by 2023 from about $200 billion currently. It’s a market with huge potential: Cash still accounts for 70% of all Indian transactions by value, according to Credit Suisse, and neighboring China is far more advanced with a mobile payments market worth more than $5 trillion.Ant Financial, China’s largest provider of internet financial services and one of Paytm’s earliest backers, has said it will continue investing in mobile-payment providers around the world to boost offshore revenue and buttress itself against rising competition and tighter regulation at home.It’s not clear how much SoftBank would contribute, but the Japanese company is going through a rocky stretch. SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by the WeWork turmoil and Uber Technologies Inc.’s disappointing debut, grow skittish about startup valuations.\--With assistance from Lulu Yilun Chen, Hema Parmar and Vincent Bielski.To contact the reporter on this story: Saritha Rai in Bangalore at email@example.comTo contact the editors responsible for this story: Arijit Ghosh at firstname.lastname@example.org, ;Sarah Wells at email@example.com, Edwin Chan, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- PT Tokopedia, the online marketplace backed by the SoftBank Vision Fund and Alibaba Group Holding Ltd., has begun discussions with potential investors for what’s likely to be its final private funding round before a dual stock market listing.Indonesia’s largest online mall is considering listing shares at home as well as in another as-yet-undecided location, Chief Executive Officer William Tanuwijaya told Bloomberg News. But he wouldn’t specify a timetable for an initial public offering, citing uncertain market conditions in a trade war.Tokopedia, the country’s most valuable startup after ride-hailing giant Gojek, is focused on its home market for now but an overseas listing should raise its profile while attracting new investors. Tanuwijaya said the startup he co-founded 10 years ago is aiming to break even next year. Its gross merchandise value should triple to as much as 222 trillion rupiah ($16 billion) in 2019, he said. Revenue is growing faster than GMV, while its community of sellers rose to 6.4 million from about 5 million last year, he added.“Dual-listing is most likely to be our approach” because the Indonesia-focused e-commerce site wants its consumers and sellers to also become shareholders, the 37-year-old founder said in an interview in Jakarta. “We are now in the process of picking the right partners who believe in our vision and mission.”SoftBank Vision Fund, Alibaba Lead $1.1 Billion Tokopedia RoundTokopedia is gunning for a listing at a time many of its peers around the world are tapping the brakes. Uber Technologies Inc.’s disappointing debut and the chaos surrounding WeWork’s botched IPO have put startups under pressure to prove their business model can lead to revenue and profit growth. The co-founders of Grab, Southeast Asia’s most valuable startup and another of SoftBank’s portfolio companies, have said they’re not planning an IPO any time soon.With a looming risk of a global recession, it’s crucial for large platforms like Tokopedia to establish a sustainable business by generating profits, said Chatib Basri, a former finance minister and senior lecturer at the University of Indonesia. “When there is a disruption to a company as big as Tokopedia, which has 90 million monthly active users, it could result in a systemic effect,” he said.Tokopedia’s advantage is its presence in an Indonesian e-commerce market projected to expand from $21 billion in 2019 to $82 billion by 2025, according to a study by Google, Temasek Holdings Pte and Bain & Co. Unlike peers Alibaba’s Lazada and Tencent Holdings Ltd.-backed Shopee, which operate across Southeast Asia, Tokopedia has chosen to expand deeper into rural areas of Indonesia, an archipelago of more than 17,000 islands where online shopping is still relatively under-developed.“Indonesia’s e-commerce penetration is still 4% to 5%, so the room for growth is still big,” Tanuwijaya said.\--With assistance from Viriya Singgih.To contact the reporter on this story: Yoolim Lee in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Associate Stock Strategist Ben Rains dives into some of the latest U.S.-China trade war updates, including President Trump's optimism. We then look at three large-cap technology stocks to consider buying during Q3 earnings season. - Full-Court Finance
Genius Brands International “Genius Brands” (GNUS) announced today it has formed a strategic co-production partnership with Alibaba Group’s (BABA) video streaming platform, Youku, to co-produce the all-new children’s animated series, Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger. Genius Brands and Alibaba’s Youku will co-produce 52 x 11 episodes of the comedy, action-adventure series, which will be available to Chinese audiences on Youku.
Let's be fair to Alibaba (NYSE:BABA). Shares of the Chinese eCommerce giant giant are up about 26.20% year-to-date and that's nothing to scoff at. That puts Alibaba stock ahead of U.S.-based rival Amazon (NASDAQ:AMZN) by nearly 1,100 basis points.Source: BigTunaOnline / Shutterstock.com Add to that, based on traditional earnings metrics, Alibaba is the less expensive of the two stocks.Though Alibaba's current U.S. footprint can best be described as small but growing, the shares have been hamstrung by the ongoing trade row between the U.S. and China. Alibaba stock, as of Friday Oct. 11, resides more than 11% below its 52-week high with a nasty June tumble accounting for most of that loss.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately, since the June lows, Alibaba has made a series of higher highs and higher lows, indicating a return to old highs and beyond is possible. In positive, broad fundamental news, Alibaba jumped 4.14% last Friday on volume that was more than 25% above the daily average amid headlines that the world's two largest economies are finally making positive headway on what has been a strained trade relationship. * 10 Super Boring Stocks to Buy With Super Safe Returns Speaking of positive fundamentals, not only are Chinese retail sales growing, indicating the world's second-largest economy is doing an admirable job of turning toward domestic consumption, but e-commerce there is booming and that's long been one of the primary catalysts for BABA stock.Online sales there are expected to swell 30% this year to $1.989 trillion, according to eMarketer."By the end of this year, China will have 55.8% of all online retail sales globally, with that figure expected to exceed 63% by 2022," said the research firm. "Alibaba will lead ecommerce sales in China with a 53.3% share." What Makes Alibaba TickAs seasoned investors well know, as China's equity market has grown, so have comparisons of companies there to American counterparts and many of those comps are drawn from the consumer cyclical sector.For its part, Alibaba is often compared to Amazon and though accurate to an extent, the Chinese company also has some Alphabet (NASDAQ:GOOG GOOGL) in it, some eBay (NASDAQ:EBAY) and even some FedEx (NYSE:FDX).According to the Harvard Business Review:"[Alibaba is] what you get if you take all functions associated with retail and coordinate them online into a sprawling, data-driven network of sellers, marketers, service providers, logistics companies, and manufacturers," "In other words, Alibaba does what Amazon, eBay, PayPal, Google, FedEx, wholesalers, and a good portion of manufacturers do in the United States, with a healthy helping of financial services for garnish."Indeed, Alibaba stock and the company itself are growth stories. Just over five years removed from its initial public offering (IPO), Alibaba is a $452 billion company, making it one of the seven most valuable Internet firms in the world.However, Alibaba stock trades at just 24.51x forward earnings. Amazon, which is also among the world's seven most valuable internet firms, trades at more than 45x forward earnings."Why has so much value and market power emerged so quickly? Because of new capabilities in network coordination and data intelligence that all these companies put to use," according to Harvard. "The ecosystems they steward are vastly more economically efficient and customer-centric than traditional industries." Bottom Line: Alibaba Stock Is a WinnerLike Amazon does in the U.S., Alibaba faces competition in its core eCommerce market and it's reasonable to expect the company will cede some market share in online retail in the years ahead. However, the company's diversified revenue streams, impressive margins and high penetration rates should continue supporting Alibaba."Alibaba's marketplace monetization rates have generally been on an upward trend despite recent macro uncertainty, indicating that sellers are increasingly engaging with Alibaba's marketplaces and payment solutions," said Morningstar in a note out earlier this month. "Retail revenue per active user continues to outpace other China rivals, owing in part to an emphasis on higher-quality merchants."Pinpointing exactly when Alibaba stock makes its next epic move is difficult, but at current levels, it's not a stretch to say the stock is undervalued by 30% to 40%.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post With Trade Tensions Thawing, Alibaba Stock Can Be Awesome Again appeared first on InvestorPlace.
(Bloomberg) -- WeWork is considering a bailout that will hand control of the co-working giant to SoftBank Group Corp., according to a person familiar with the matter, one of two main options to rescue the once high-flying startup.The Japanese investment powerhouse controlled by billionaire Masayoshi Son is convinced it can turn around the cash-strapped American company with the right financial controls in place, the person said, asking not to be identified talking about internal deliberations. WeWork’s board and backers however are also weighing another option: JPMorgan Chase & Co. is leading discussions about a $5 billion debt package, Bloomberg has reported.Either rescue package, or some combination of them, would ease a cash crunch that could leave the office-sharing company short of funds as soon as next month. We Co., the parent of WeWork, had been headed toward one of the year’s most hotly anticipated IPOs before prospective investors balked at certain financial metrics and flawed governance, turning the American giant into a cautionary tale of private market exuberance and costing the company’s top executive his job.The fast-growing, money-losing startup had been counting on a stock listing -- and a $6 billion loan contingent on a successful IPO -- to meet its cash needs.Son, SoftBank Risk Too Much With WeWork Takeover: Tim CulpanRead more: WeWork Is in Talks for $5 Billion Debt Package With LendersThe Wall Street Journal first reported that SoftBank may be discussing a deal to gain control of WeWork. Representatives for the Japanese company weren’t immediately available for comment Monday, a national holiday.SoftBank is already WeWork’s biggest shareholder but the proposed deal would shore up its control of the startup, the person said, declining to elaborate on when a decision on the competing offers might be reached. The Japanese company is in advanced talks to acquire more shares at a significantly lower valuation than the $47 billion WeWork sported in January, two people familiar with those discussions said last week. The New York Times has reported that members of the board would meet Monday to decide on which bailout to select.If the board opts for the SoftBank deal, the Japanese company will be taking on a troubled enterprise at a time it’s struggling to convince the market about its longer-term investment vision. It’s also busy wooing potential investors for a successor to its record-breaking Vision Fund.Read more: SoftBank’s Son Is ‘Embarrassed’ By Record, Impatient to ImproveSon is going through a rocky stretch after repositioning his company from a telecommunications operator into an investment conglomerate, with stakes in scores of startups around the world. He built a personal fortune of about $14 billion with spectacularly successful bets on companies such as Alibaba Group Holding Ltd. But SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by WeWork and Uber Technologies Inc.‘s disappointing debut, grow skittish about startup valuations. In an interview with the Nikkei Business magazine, Son said he is unhappy with how far short his accomplishments to date have fallen of his goals.WeWork and Uber may be losing money now, but they will be substantially profitable in 10 years’ time, Son said in that interview. But at a private retreat for portfolio companies late last month, he had a different message: get profitable soon. At the gathering, held at the five-star Langham resort in Pasadena, California, Son also stressed the importance of good governance. Just days later, SoftBank led the ouster of WeWork’s controversial co-founder Adam Neumann.“WeWork has retained a major Wall Street financial institution to arrange a financing,” a representative for the U.S. company said in a statement on Sunday. “Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”(Updates with details of SoftBank investments from the sixth paragraph)To contact the reporters on this story: Gillian Tan in New York at firstname.lastname@example.org;Michelle F. Davis in New York at email@example.com;Davide Scigliuzzo in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Tom Giles at firstname.lastname@example.org, Edwin Chan, Virginia Van NattaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
“Fintech is not only an enabler but the driving engine,” said Pierre Gramegna, the Minister of Finance of Luxembourg. FinTech is an amalgamation of finance and technology and is fast paving a new way for the future of the financial world. It is only a matter of time when everything around us will have FinTech as its focal point.
The trade war between the U.S. and China has dragged on for more than a year and has claimed plenty of victims as traders succeed -- and often fail -- in trying to time the markets. Indeed, some investors in Alibaba (NYSE:BABA) stock have lost capital by selling their shares whenever the tariff-war tension ramps up. To me, that's not a winning strategy in the markets. As I'll soon explain, Alibaba Group is a solid investment and there's no need to dump your Alibaba stock shares at every little trade-war scare.Source: BigTunaOnline / Shutterstock.com In reality, your best bet is probably to hold on through thick and thin, and possibly even add a few more shares when the price dips. BABA Stock, By the NumbersWherever you look, you're very likely to find positive data surrounding Alibaba even amid a heated trade war. For one thing, Alibaba Group's most recently reported quarterly revenues should impress any current or prospective shareholder. In fact, the company announced a whopping 42% year-over-year increase in its revenues, and Alibaba's total revenues were revealed to be 20% greater than they were in the previous quarter. Particular highlights included a 44% revenue expansion in Alibaba's e-commerce business, as well as a massive 66% increase in the company's cloud services business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, when it comes to cash flow and enhanced shareholder value, it's hard to beat Alibaba. The company can boast an impressive $4.73 yield in earnings-per-share over the past year, which makes any debate surround the BABA stock price almost irrelevant because the shares could essentially be considered a bargain at any price (within reason, of course). * 7 Beverage Stocks to Buy Now All told, Alibaba Group grew its annual revenues from 2017 to 2019 by 56% on average, indicating that the ongoing tariff battle between the U.S. and China can't stop a good company from enhancing its bottom line. I'm expecting this growth trajectory to continue, as Alibaba serves 860 million customers and is targeting 1 billion customers for FY 2024. And I think they're even selling themselves short with that figure. The Damage Is Done, But Alibaba Group Will SurviveSuffice it to say that BABA stock holders need not be concerned about Alibaba Group's profitability, as the aforementioned numbers indicate a bright future for the company as well as the shareholders. The macro environment, however, has some BABA stock investors worried about trade concerns taking a toll on the share price.Now, it cannot be denied that the tariff war must be taken into account in today's investing landscape. Indeed, research conducted by Iowa State University's Minghao Li, Edward J. Balistreri and Wendong Zhang found that as of September, U.S. exports to major trade partners in China, Canada, Mexico and the European Union have declined; the steepest decline has been in American exports to China, which fell "by 6.4% under the tariffs accumulated as of September 2019."Of course, China's exports have declined as well, and Alibaba stock investors need to watch the ongoing developments in the international trade dispute carefully. Still, China is surviving and possibly even thriving during these challenging times, as the nation's GDP growth forecast for 2019 is 6.1% -- a strong number compared to other developed nations, including the United States. The Takeaway on Alibaba StockNo trade war in history has lasted forever, and while they're concerning in the moment, a long-term outlook can help investors ride out the turbulence. As for BABA stock, there will be whipsaws but Alibaba Group remains strong and shareholders can rest assured that patience will pay off, trade war or no trade war.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Alibaba Stock Should Stay Profitable Regardless of Trade-War Outcome appeared first on InvestorPlace.
Shares of tech companies Alibaba, JD.com, the Trade Desk, and Roku are up today. The broader indexes have also opened higher on trade talk optimism.