E-commerce

Capital Calls: Russia and US, Clothing IPOs, Food

3 Jun 2021

Concise views on global finance: The Kremlin tells its national state fund to get out of greenback-denominated assets; Rent the Runway thinks about going public; the FAO’s global food index hits its highest level in nearly a decade.

Meituan delivers strong dish with weak sides

31 May 2021

The $207 bln company’s main food delivery business more than doubled quarterly sales. But new bets including e-groceries and community group buying helped serve up a $1 bln operating loss. An antitrust probe and rules on insuring drivers threaten to spoil the whole package.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Pinduoduo’s new boss has long list to check off

27 May 2021

The $155 bln e-commerce group tripled quarterly sales to $3 bln and narrowed losses – a good start for CEO Chen Lei. Under his predecessor, Pinduoduo delivered annualised returns of over 90%. Pressure from Beijing, slowing growth and fierce competition will make that hard to top.

Capital Calls: Uber union

26 May 2021

Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

Capital Calls: “Friends” reunion, SPACs in D.C.

24 May 2021

Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.

JD makes most of its underdog position

20 May 2021

Richard Liu's $109 bln web retailer grew first quarter sales by an impressive 39%. Compared to larger and faster-moving rivals like Alibaba, JD is less of a regulatory target so far. Its premium valuation will depend on whether it can keep up in areas like online groceries.

Amazon’s world is already enough without MGM

18 May 2021

The $1.7 trln e-commerce giant has huge clout in what consumers buy. Buying the studio that owns James Bond would make it a bigger force in what they watch too. For competition watchdogs, Amazon’s creep into every facet of its customers’ lives is an invitation to yell “cut.”

JD’s logistics IPO delivers more value to parent

18 May 2021

Chinese web retailer JD.com wants to value its delivery arm at $34 bln in a Hong Kong IPO, or 128 times adjusted trailing earnings. Expansion costs are eating into profitability at the fast-growing unit. Its parent – and top client – could see more upside than other investors.

Sea has a new reason to play a smart game

18 May 2021

The success of the $114 bln Southeast Asian giant’s gaming unit is tied to third parties like backer Tencent. Developing more of its own hits like “Free Fire” will provide a more stable core to offset losses in areas like e-commerce as rivals Gojek and Tokopedia tie up to compete.

Indonesian super-app merger grabs at Grab

17 May 2021

Combining Gojek and Tokopedia creates a delivery, mobility, shopping and payments powerhouse barely a month after their Singapore rival’s $40 bln SPAC deal. The first transaction offers clues to the value of the second but ahead of an IPO GoTo must demonstrate bigger is better.

Alibaba tightropes to please investors, Beijing

13 May 2021

A $2.8 bln antitrust fine resulted in a quarterly net loss, but the Chinese e-commerce giant expects annual sales to jump 30% to $144 bln. That should soothe jittery shareholders. Regulators, though, are increasingly at odds with Alibaba’s competitive edge – its vast data trove.

Capital Calls: Amazon EU tax win, Scooter SPAC

21 Jan 2022

Concise views on global finance: Jeff Bezos’s e-commerce giant wins a victory over the European Union, but the battle has already moved on; Bird’s $2.3 billion price tag is relatively high but less pie-in-the-sky than some recent deals.

UK web star ingeniously adds $1 bln to war chest

11 May 2021

That’s how much THG raised from SoftBank and others. The Japanese company also gets an option to buy 20% of the e-commerce group’s yet-to-be-created Ingenuity unit for $1.6 bln. That may never happen. But CEO Matthew Moulding has boosted the share price and raised cash for deals.

Jeff Bezos hands successor post-pandemic pivot

29 Apr 2021

Amazon’s 44% jump in quarterly revenue rounds out a year of locked-down consumers and panic buying. The stock is up only 9% this year as the pandemic effect wanes. Still, Bezos’s company is growing in online ads and cloud. Managing the shift will fall to incoming boss Andy Jassy.

U.S. ruins Japan Inc’s flirt with China

23 Apr 2021

A 3.7% stake sale by e-commerce group Rakuten to Shenzhen-based Tencent is under joint scrutiny by Tokyo and Washington. As Japan’s stance against China hardens under American pressure, a nascent rising trend in Chinese investment in the country may be cut short.

Meituan loads cash bazooka for e-commerce fight

20 Apr 2021

The $220 bln Chinese delivery app has raised $10 bln to take on larger Alibaba. Investors are sceptical of boss Wang Xing's money-losing bets; shares are down 36% since mid-February. Replenishing the war chest eases financial stress but raises pressure to deliver quick results.

Jack Ma discounts value of tech-boss charisma

19 Apr 2021

Fintech giant Ant is exploring ways for its founder to divest, to end the pressure from Beijing and salvage what it can of a onetime $300 bln valuation. As outspoken and larger-than-life leaders become bigger liabilities in China, investors have good reason to be more discerning.

China’s Alibaba slap offers clues to hit Amazon

12 Apr 2021

Jeff Bezos’s firm has reason to worry about the $2.8 bln fine for Jack Ma’s e-commerce giant. Beijing’s definition of the appropriate market and focus on data may provide helpful tips to U.S. watchdogs. Still, Amazon has something Alibaba lacks: recourse to American courts.