E-commerce

Richemont hedges online bets with Farfetch stake

6 Nov 2020

The Cartier owner is investing $550 mln in the deluxe fashion e-tailer, alongside Alibaba. That should help Richemont grab a larger share of China’s booming e-commerce market. But betting on a competitor of its own struggling online unit also looks like an admission of failure.

Chinese tech giants take proxy war to New York

3 Nov 2020

Alibaba is jostling for a stake in U.S.-listed online fashion retailer Farfetch. That would put Jack Ma’s behemoth in contention with rivals JD and Tencent, who also have their fingers on the UK firm. Courting such investors will better equip Farfetch in its battle with Amazon.

Amazon’s twin engines ready for the stratosphere

29 Oct 2020

The company had a stellar quarter from e-commerce and cloud computing. Those businesses were already good, and 2020’s challenges made them better. With a market value of $1.6 trln, Amazon is either a bargain or an antitrust target. Threading the needle is getting harder.

Alibaba valuation hole bored deeper by Ant IPO

22 Oct 2020

The e-commerce giant's fintech stake might be crystallised soon at some $80 bln. A promising cloud computing business could be worth more, but investors ascribe hardly any value to it. Better financial disclosure would help narrow a discount CFO Maggie Wu keeps griping about.

Alibaba grocery deal may stall at final checkout

19 Oct 2020

The Chinese e-commerce giant is buying out its French partner in supermarket chain Sun Art, for $3.6 bln. A mere 2% premium suggests an eager retreat for the seller. Given Alibaba’s brick-and-mortar ambitions, minority shareholders have less reason to settle for a discount price.

Corona Capital: Kazakhs, Norwegians, Airlines

15 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Kaspi gives ECM bankers something to smile about; Norway’s sovereign wealth fund has a so-so third quarter; and United Airlines has more bad news on jobs.

Corona Capital: Soap, Zalando, Aussie oil

9 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Vigorous handwashing has helped Henkel’s soaps business, but not enough to offset its other bits; homebound shoppers give Zalando a boost; and Canberra may need to refine its refinery strategy.

Heady Polish e-commerce IPO calls for brisk tempo

29 Sep 2020

Allegro’s float values it at $12 bln including debt. That’s a punchy 32 times EBITDA, in line with global rival Amazon. As it processes 36% of the country’s online sales, a promise of speedy growth relies on new revenue sources. Meanwhile, competition will squeeze margins.

JD’s hyped-up spinoffs leave its basket light

29 Sep 2020

The Chinese web retailer is rallying on expectations it will list health, fintech and logistics units which might account for almost half JD’s $117 bln market cap. But it implies a so-so valuation for the core business. Richard Liu’s next challenge will be to set that right.

Corona Capital: Shale merger, Logistics startup

28 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.

Amazon luxury success requires network effect

17 Sep 2020

The $1.5 trln e-commerce behemoth has wooed fashion house Oscar de la Renta to its new high-end platform. Access to Amazon Prime’s over 150 mln high-spending members is a selling point. But big brands may all wait for peers to take the plunge. That could mean a slow start.

Corona Capital: Amazon, NYC and Trump

14 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Amazon’s hiring boom highlights its weakness, and U.S. President Donald Trump could throw New York City a bone.

Polish e-commerce IPO requires anti-Amazon defence

14 Sep 2020

Cinven-backed Allegro may be worth as much as $12 bln when it lists in Warsaw. Covid-19 helped boost net revenue more than 50% in the first half. And with only 8% of Polish retail sales online, there’s more room for growth. The danger is that global giants flood the market.

Yum China adds spice to its tech credentials

7 Sep 2020

The operator of KFC and Pizza Hut has raised $2.2 bln in Hong Kong at a valuation above Alibaba. The secondary listing was permitted as digital orders dominate sales. But the hot badge has downside too: volatility in internet stocks risks a not-so-finger-lickin’ good debut.

Ad market recovery is all about Amazon

2 Sep 2020

Jeff Bezos’ firm was the top U.S. spender last year, splashing out some $7 bln in advertising. If it allocates the same share of revenue in 2020, it could more than offset slumps at other big advertisers. That may leave media firms even more reliant on the e-commerce colossus.

Quirky governance puts blemish on beauty tech IPO

2 Sep 2020

The Hut Group’s 4.5 bln pound London market debut is riding a pandemic-fuelled boost in online sales for own-brand products like Myprotein. But baking in a semi super-vote for founder Matthew Moulding, which effectively allows him to block takeovers, may dull future successes.

Corona Capital: Pools, Dell

28 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: Pool firm’s dive into public markets, Dell’s hardware resilience.

TikTok starts to attract a FOMO premium

27 Aug 2020

Walmart’s interest in teaming up with Microsoft to buy the China-backed video app makes sense only in that TikTok is one of a kind, and ByteDance is a forced seller. Like rival bidder Oracle, Walmart is taking a strategic detour. History offers sad examples of how that can end.

Corona Capital: KFC ditches finger lickin’

25 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The Yum Brands’ fast-food chain made eating fried chicken synonymous with cleaning your digits with your mouth. KFC has at last realized that’s a no-no in a pandemic.

Pinduoduo gets stung by its own shopping hype

24 Aug 2020

Investors erased $16 bln in market value from the Chinese company as orders on its e-commerce app disappointed. “Gross merchandise value” is a confusing metric and much more so when consumer sentiment is volatile. Boss Chen Lei has had a costly lesson in why hard numbers rule.