E-commerce

Jeff Bezos starts to resemble Sam Walton

21 Dec 2018

Amazon is selling shelf space, opening stores and launching catalogs. Old-school Walmart’s acquisitions of Jet.com and Flipkart are helping it challenge its rival’s online dominance. As the two retailers increasingly resemble each other, so too will their valuations.

Stitch Fix models tech’s terminal problem

11 Dec 2018

The outfit-delivery service’s shares fell 29 pct despite profit that beat expectations. That’s because tech valuations hang on terminal value – the cash flows that come once the business is mature. Slowing customer growth raises doubt about whether this one will reach middle age.

Jack Ma and Xi Jinping: dubious comrades in arms

27 Nov 2018

State media outed the founder of $400 bln Alibaba as a Communist Party member. Implied support from China’s most famous capitalist helps President Xi’s efforts to meddle in tech. Recent Ma comments suggest he isn’t exactly on board. This turns up the heat on simmering tension.

Holding: Big tech cruising for antitrust bruising

26 Nov 2018

Facebook’s Russian-meddling fumbles and Amazon’s second-headquarters hubris are Exhibits A and B for legal reform. Derided as “hipster antitrust,” the idea that bigness alone can breed evil is true to competition law’s original aim. It’s time trustbusters became disruptors, too.

Dolce & Gabbana’s Chinese outfit proves reversible

26 Nov 2018

Like many others, the Italian fashion house has cashed in on the mainland’s ambitious urbanites. A disastrously insensitive ad campaign, though, has led to social-media outrage and widespread boycotts. It’s a prime example of how fast the same savvy shoppers can unravel a brand.

Tencent Music will sound out global IPO market

26 Nov 2018

China's answer to Spotify may push on with a $2 bln New York listing in December. It’s a bad time of year to sell new equity and Tencent has already once delayed its plans. With no obvious need for funds, a subdued deal would confirm that the window for big IPOs is closing fast.

China’s food delivery giant is missing a key dish

23 Nov 2018

Losses at newly-listed Meituan Dianping swelled in the last quarter. Boss Wang Xing’s bets at the $43 bln takeout-to-taxis app have been costly. Confusing disclosures on the core food delivery unit also now make it harder to judge how close the outfit is to delivering a profit.

Target deserves as much investor love as Walmart

20 Nov 2018

Owners wiped 11 pct off the retailer’s stock after it just missed estimates. Yet soaring online revenue and a rise in same-store sales show Target, like Walmart, is dealing well with shoppers’ changing habits. Its larger rival, though, sports a better multiple on lower margins.

JD governance overhaul becomes more urgent

16 Nov 2018

The $35 bln Chinese web retailer is expected to post another fall in quarterly profit. Its shares are down by nearly half this year. A rape allegation against boss Richard Liu has left a cloud over JD. Walmart and other big backers have good reason to urge him to loosen his grip.

Walmart ticks all the right boxes on the home front

15 Nov 2018

The retail giant reported better-than-expected U.S. sales at its stores and raised guidance for the year. E-commerce is humming along too. Investments in India and China have hit some bumps. But after Amazon warned of slowing growth, Walmart’s steadiness gives it an edge.

Walmart at least gets new start from Flipkart mess

14 Nov 2018

Binny Bansal is leaving amid a misconduct scandal just months after the U.S. retailer paid $16 bln for the Indian e-commerce firm he co-founded. It’s a blemish on Walmart’s due diligence, but Flipkart’s management has been tumultuous. The outcome may be a blessing in disguise.

Jeff Bezos spreads jobs and disappointment

13 Nov 2018

By splitting his ballyhooed HQ2 between New York City and greater Washington, the Amazon boss can tap deep pools of tech talent. But the unconventional choice aggravates the socioeconomic divisions that plague America. It also exposes the year-long exercise as somewhat of a sham.

Singles’ Day haul offers Alibaba temporary relief

12 Nov 2018

The e-commerce titan said sales hit $31 bln during this year's Nov. 11 event, another record and an impressive, though cooler, 27 pct increase on last year. That will ease some worries over Chinese consumption. Still, a day of online bargains is a poor indicator of future growth.

Naspers’ Vision Fund-lite carries less baggage

5 Nov 2018

The South African internet giant’s $8 bln answer to SoftBank’s mega-fund is quietly taking shape. Besides shunning the limelight, the Cape Town-based firm also lacks Masayoshi Son’s Saudi connection. Some of its early punts haven’t done too badly either.

Alibaba feeds fears of cooling Chinese consumption

2 Nov 2018

Quarterly sales hit $12 billion, but the e-commerce titan missed expectations and trimmed guidance. That suggests local shoppers and advertisers may be pulling back. It won't reassure investors rattled by trade tensions and lacklustre spending during a big October holiday.

China’s advertising giants face white space

31 Oct 2018

With a slowing economy, marketing teams will pull back on ad spend. That will hit sales growth for search titan Baidu and microblog Weibo. The squeeze, alongside Google's mooted return to China, threatens to exacerbate the tech selloff and puts fresh importance on the race to diversify.

Amazon’s ad initiative is a useful add-on item

25 Oct 2018

The $870 bln company doubled third-quarter sales mainly pertaining to advertising. As a challenger to Facebook and Google, both mired in data scandals, Jeff Bezos’ firm risks negative attention. But the extra sales help and, thanks to other revenue streams, it has less to lose.

Amazon’s HQ2 losers may end up as big winners

24 Oct 2018

The $860 bln e-commerce giant will pick its second headquarters soon. Only one city will be chosen, but Jeff Bezos’ outfit invests and hires prodigiously in many urban areas and will surely continue to do so. The winner may have to work hardest of all to justify its giveaways.

Amazon throws darts on the Indian high street

24 Oct 2018

The e-commerce giant is pumping money into local bricks-and-mortar stores. Turning offline, as it has done at home, underscores boss Jeff Bezos’ ambition. It’s also a hedge against rival Walmart, should New Delhi allow foreigners freer rein in supermarkets and department stores.

Jack Ma’s American dream clashes with China First

20 Sep 2018

Alibaba’s retiring founder rescinded a promise to create 1 mln U.S. jobs. He blamed tariff tensions, but Kroger and other foreign brands have not had a level playing field on the global Tmall site. Unless that changes, the company will be more of a trade problem than solution.