E-commerce

Alibaba is the ultimate contrarian China bet

21 Feb 2024

The $188 bln e-commerce group was once emblematic of the country’s growth and tech innovation. But over-expansion, regulatory crackdowns, and slowing consumption are forcing CEO Eddie Wu to perform a hard reset. Winning back investors requires Beijing to correct course too.

Walmart buys TV portal to nowhere

20 Feb 2024

The $484 bln retailer is buying smart-TV maker Vizio for $2.3 bln. It’s a tiny gamble on the possibility the operating system eventually captures individual viewing habits and beefs up ad capabilities. But given Walmart’s M&A track record, chances are, it’s still a waste.

Capital Calls: Temu’s spending

12 Feb 2024

Concise views on global finance: The Chinese shopping app’s Super Bowl commercial is part of a broader effort to win market share. It’ll help companies like Meta, but Temu now has a chance to muscle in on Amazon’s turf and force the e-commerce giant to compete.

Amazon’s investors can chill with M&A freeze

29 Jan 2024

The e-commerce giant scrapped a $1.4 bln deal for Roomba maker iRobot after regulatory opposition that suggests future deals, no matter how small, will be seen as problematic. Given Amazon’s track record with past tie-ups like Whole Foods, though, some restraint could be welcome.

Tired trends make their way to Macy’s

26 Jan 2024

The department store chain dressed down a $5.8 bln takeover bid by two investment shops because of financing concerns. From Kohl’s to Saks, the designs are typically the same: split stores from property or online from brick-and-mortar. Neither option looks especially attractive.

Shein’s China and ESG risk puts IPO on iffy ground

25 Jan 2024

The fast-fashion giant is preparing a New York stock market listing. In this Viewsroom podcast, Breakingviews columnists explain how US investors might be wary of links to Beijing, and how its hard-to-recycle $5 tops and sweaters could be vulnerable to future regulation.

Venture capital’s facelift shows modest scars

24 Jan 2024

Growth-company investors are paying higher prices, new data suggests, even if dealmaking overall is still muted. Interest is shifting to areas like AI and manufacturing. The result is a new look for the recovering startup ecosystem, albeit with a little less youthful vigor.

Temu hurts Amazon more than it helps

4 Jan 2024

The $1.5 trln e-commerce giant is defending itself against FTC Chair Lina Khan. The Chinese retailer and rival Shein’s quick seizure of market share could keep her happy. Less thrilled will be Amazon’s own shareholders, who have added some $660 bln to its market cap in a year.

Farfetch rescue leaves scattered luxury debris

18 Dec 2023

The struggling online merchant secured a bailout from South Korean e-commerce giant Coupang, which is injecting $500 mln. The deal gives Farfetch a fresh shot at existence, but leaves former backer Richemont wiped out, and its new investor with fresh messes to clean.

Temu takes edge, and shine, off Shein

29 Nov 2023

The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.

Capital Calls: Goodyear, Target

15 Nov 2023

Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.

China’s Singles Day shows buyers’ commitment issue

13 Nov 2023

The country’s biggest shopping event recorded meagre growth of around 2% in total volumes despite steep discounts. E-commerce giant Alibaba didn’t provide figures again, a sign of slow sales. Beijing needs consumers to power growth but shoppers look fatigued.

Amazon’s space dreams deserve to be grounded

16 Oct 2023

The tech giant's $10 bln internet-in-the-sky venture is years late and thousands of satellites short in rivaling SpaceX. It may appeal to founder Jeff Bezos and his rocket-maker Blue Origin. But Amazon risks a costly rerun of prior telecom booms that led to painful busts.

Alibaba spinoff can deliver two recovery packages

4 Oct 2023

Logistics unit Cainiao’s name may mean “rookie”, but the group is profitable and weaning itself off dependence on its parent. A successful IPO valuing it at $10 bln or more would warm up Hong Kong’s market and show Alibaba’s overhaul is on track after CEO Daniel Zhang’s exit.

Elon Musk’s X is a black hole of value

3 Oct 2023

Boss Linda Yaccarino is set to present her plans for the social network to bankers holding $13 bln of debt used to buy it. But X may be worth as little as $8 bln. Lead lender Morgan Stanley may have to pick up the pieces just as X threatens to consume whatever value is left.

Indonesia spoils TikTok’s Southeast Asia party

28 Sep 2023

The region’s largest economy is banning social media outlets from hosting direct sales on their platforms. That’ll hit ByteDance’s short-form video app hard: it has 125 mln Indonesian users and the country is its main e-commerce market. So much for mixing business with pleasure.

IPO candidates are trying to flip the FOMO script

18 Sep 2023

Arm’s IPO investors got a 25% return on the first day. Instacart began its roadshow with a low number, only to bump it up. Klaviyo just lifted its price range. Companies and their bankers are finally getting an open window. Creating envy over big debuts will help it stay open.

Klaviyo is better bellwether than Arm or Instacart

13 Sep 2023

Unlike its hyped peers, the marketing firm is paving the way for garden-variety tech IPOs, targeting an $8 bln valuation. It’s profitable, growing and even has its own invented metric, making it a better gauge of investor sentiment. One wrinkle is its reliance on backer Shopify.

Smurfit $11 bln bid for dominance risks paper cut

12 Sep 2023

The Irish cardboard-box king is handing a roughly 40% premium to investors in US rival WestRock as part of a deal to form a sector leader. The price overshadows chunky cost cuts, implying low returns. Yet standing still in a rapidly softening packaging market is not an option.

Daniel Zhang leaves Alibaba under a cloud

11 Sep 2023

The $230 bln e-commerce group’s outgoing boss has also stepped down as chief of its key computer services unit. The sudden decision upends what seemed a smooth transition of power. It may also delay AliCloud’s spinoff, and with it hopes of boosting the parent company’s valuation.