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E-commerce

Alibaba stock should have local staying power

16 Jul 2019

The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.

Anta outruns short-sellers at surprising pace

9 Jul 2019

The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.

Amazon could be a smart shopper in Southeast Asia

8 Jul 2019

The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.

European IPO investors show reassuring rationality

27 Jun 2019

VW’s truck unit and telco Africa Airtel will sell shares at the bottom of their respective ranges while Global Fashion Group cut its price. Unlike recent U.S. mega-floats such as Uber, valuations were cheap. It’s a welcome sign credulity has limits despite buoyant stock markets.

Walmart e-commerce flies on, using Jet.com’s parts

13 Jun 2019

The $311 bln retailer is folding much of the upstart it bought in 2016 into its own business. While Jet.com never took off at scale, it helped revitalize the U.S. behemoth’s online sales. Focusing on its core brand underlines Walmart’s key advantage over Amazon: physical stores.

Credit Suisse gets closer to real Alibaba trophy

12 Jun 2019

The tech giant has picked the Swiss bank, along with part-owned CICC, to lead a $20 bln Hong Kong share sale. Both have largely stayed clear of Alibaba rivals, suggesting loyalty is being rewarded. They are now positioned to contest a bigger prize: $150 bln Ant Financial’s IPO.

Jeff Bezos adds fasting to meal-delivery menu

11 Jun 2019

He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.

Alibaba’s cracks show by revisiting Hong Kong

28 May 2019

The $400 bln e-commerce company plans to raise up to $20 bln from a second listing, five years after its New York IPO. Investors closer to home may give Alibaba a richer valuation. But seeking fresh capital alongside younger rivals also suggests its dominance is under threat.

Meituan Dianping delivers sweet-and-sour to Uber

23 May 2019

Getting bigger enabled the $40 bln Chinese company to cut its operating loss by charging restaurants for ads and fees to tote meals. Intensifying competition with Alibaba, however, will eat into cash. Uber can expect similar trouble as it squares off with Amazon-backed Deliveroo.

FamilyMart fracas reheats Chinese corner-store war

23 May 2019

The $13 bln Tokyo-based chain is suing to end its mainland joint venture. It already ranks second in China, ahead of Japanese peers Lawson and 7-Eleven. Untethered, it could expand faster, find a tech-savvier partner, and perhaps take the lead.

China’s e-commerce upstart makes its presence felt

20 May 2019

The $26 bln Pinduoduo has faced regulatory scrutiny and allegations of dodgy numbers. Now it boasts more shoppers than rival JD and has put Alibaba on defence in parts of the country. The upstart’s latest quarterly loss, though, keeps alive questions about the cost of growth.

Amazon-Uber food fight means empty bellies for all

17 May 2019

The web giant is backing a $575 mln investment in Deliveroo, which ferries meals to time-poor urbanites. It means the UK-based group can continue its assault on rival Uber Eats in Europe. Thin margins and deep-pocketed investors are the perfect ingredients for perpetual losses.

India’s unicorns leading charge to credit boom

17 May 2019

Ride-hailing outfit Ola and payments app Paytm, backed by Warren Buffett’s Berkshire Hathaway, just unveiled credit cards in a country where debit cards dominate. Generous rewards from SBI and Citi follow tech’s subsidy playbook. In this case, though, growth may be profitable.

Tencent deserves its premium over Alibaba

15 May 2019

China’s tech titans face slower growth in their respective strongholds of video games and e-commerce. As they fight it out in finance, Alibaba's $150 bln affiliate, Ant, is winning. Tencent's chat app, though, gives it an overall edge that justifies a higher earnings multiple.

Jumia reveals risky allure of big African numbers

13 May 2019

The online retailer’s first-quarter operating losses widened even though revenue doubled. After falling 63% from their post-IPO peak the shares still trade on a similar multiple of future sales as Alibaba. Africa has promise but merits a steeper discount to the Chinese behemoth.

JD’s profit strength hides shopper fatigue

10 May 2019

After an impressive first quarter, China's $40 bln web retailer is on track for its first annual net profit. But customer growth has flatlined. That suggests damage from nemesis Alibaba catching up in logistics, and upstarts like Pinduoduo adapting faster to new consumer trends.

Japan’s telecom upstart tests plan for disruption

2 May 2019

E-commerce group Rakuten has done well out of bets on Lyft and Pinterest. That supports its capex-light push to challenge Japan's mobile oligopoly. Reliance upended the Indian sector with a costlier, but similarly daring gamble. Hiroshi Mikitani can hope for some of that success.

Amazon’s best weapons are sprawl and usefulness

25 Apr 2019

With revenue of $60 bln in the last three months alone, it’s hard for Jeff Bezos’s firm to stay camouflaged. U.S. presidential hopeful Elizabeth Warren has already made Amazon a target. Expect more cash to be diverted into socially helpful technology and geographic dispersion.

Casino sales merely keep its head above water

23 Apr 2019

The indebted 4.2 bln euro French retailer has sold 470 million euros of supermarkets to U.S. buyout firm Apollo. The valuation looks adequate and the group’s shares are well above September lows. But leasing back its own stores will act as a drag on Casino’s recovery.