E-commerce

Alibaba and the 40-year bond is one tall tale

29 Nov 2017

The e-commerce giant is selling the longest fixed-maturity paper ever by a Chinese company. Jack Ma’s outfit is smart to lock in cheap funding while it can. But with Beijing looking to influence the tech sector, investors should think hard about four decades of political risk.

China credit move a plus for twitchy web lenders

29 Nov 2017

The web finance watchdog will create a credit rating platform with private companies including Tencent, says China Daily: a healthy development in a messy industry. But forcing big players to share too much proprietary data could dilute competitiveness and discourage innovation.

Alibaba deal guides grocers to checkout

20 Nov 2017

The e-commerce goliath is buying over a third of Chinese supermarket owner Sun Art for $2.9 bln. It underscores how food marks a pivotal retail battleground. And for Alibaba to secure the stake at a 24 pct discount suggests its brick-and-mortar rivals see the writing on the wall.

Amazon surrenders cheapest bit of Chinese cloud

14 Nov 2017

A local partner will buy the hardware associated with the U.S. web giant’s cloud-services business. Onerous new security rules – or, for critics, Beijing’s protectionist tendencies – are behind the sale. Amazon and other Western tech firms may yet have to give up more.

Singles’ Day is shop window for Alibaba’s new toys

10 Nov 2017

Jack Ma's $480 bln behemoth is set for its annual shopping festival. That means lots of free PR and huge transaction volumes. Ma’s stunts will also show how supermarkets, augmented reality and mobile payments fit together. That will help sell his "new retail" idea to investors.

Amazon European shopping talk is wishful thinking

28 Sep 2017

Supermarkets Carrefour and Sainsbury have been floated as potential targets following the e-commerce giant’s $13.7 bln purchase of Whole Foods. But CEO Jeff Bezos already owns the one grocer he really needs. Bid speculation only obscures the broader competitive pressures.

Alibaba trades margins for clarity in logistics

26 Sep 2017

The tech giant is paying about $800 mln to lift its stake in logistics arm Cainiao slightly to 51 pct. Keeping the unit at arm’s length had prompted SEC scrutiny. But absorbing the capital-intensive and loss-making Cainiao into the parent’s accounts will weigh on margins.

Life could get choppy for Sea after $1 bln IPO

25 Sep 2017

The Southeast Asian gaming-to-shopping startup has filed for a U.S. listing. Alibaba is already a rival in the region and Amazon is just getting started. Both are giants that can burn subsidies. For Tencent-backed Sea, listing will only make it harder to compete.

Chinese web grocer’s IPO requires a strong stomach

14 Sep 2017

Food giant COFCO wants to raise up to $600 mln floating an online supermarket. Sales are growing as web shoppers splurge on fresh produce. But the group is investing heavily in logistics. Throw in a costly price war with Alibaba and others, and investor appetite may be lacking.

These retail chains can resist the Amazon vortex

28 Aug 2017

If investor judgment is any guide, Ross Stores, Home Depot and AutoZone may have the wherewithal to withstand the apocalypse wrought by the e-commerce titan, which just swallowed Whole Foods. All of them either match or beat Amazon’s multiple of enterprise value to future sales.

Advertisers rise to VIP status for Alibaba

17 Aug 2017

The Chinese e-commerce group raked in over $7 bln of sales in the recent quarter, thanks to a surge in ad dollars. Marketing revenue already accounts for half of the total, and Alibaba is pushing hard to attract more top brands. These early efforts look promising.

Mexico, Canada miss trick in NAFTA e-commerce fight

14 Aug 2017

Both countries are battling against Trump administration demands to let their citizens import more online goods duty-free. It would hurt their retailers and help U.S. firms like Amazon. But consumers would benefit. Conceding may also help their case in broader NAFTA negotiations.

JD tests limits of China’s tech euphoria

14 Aug 2017

Stocks like JD, Alibaba and Tencent have soared amid a global tech boom and renewed optimism over China. As JD’s latest results show, some firms are also fundamentally getting stronger. A further run-up, however, will be hard to justify.

Worldpay wrings ample concessions from Vantiv sale

9 Aug 2017

The British payments group finalised a 7.9 bln pound ($10 bln) takeover by its U.S. rival after twice extending a bid deadline. Worldpay investors were unhappy at the price and offer of mostly U.S. shares. A UK listing and the option to take more in cash should appease them.

Amazon rides open road with few bumps

27 Jul 2017

The $500 bln internet retailer reported another riveting quarter of top-line growth. Investors will fret about the sky-high valuation and reduced profit, but feedback loops within the company keep rivals at bay. Governments may one day intervene, but that reckoning is far off.

IPO baggage weighs heavier on ZTO

21 Jul 2017

A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 Jul 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Alibaba rewrites its e-commerce playbook

20 Jul 2017

China's online giant is trumpeting "new retail": a push into bricks-and-mortar shopping. That could help sustain high growth. But abandoning the asset-light model which has been Alibaba's unique selling point will weigh on profits.

Amazon monopoly game will take forever to play out

14 Jul 2017

The e-commerce titan's Whole Foods deal has sparked fresh fears of its dominance. One hedgie says whispers of a possible congressional review prompted him to short the stock. How antitrust law applies, though, is unclear. For now, consumers and investors probably keep winning.

Amazon’s path of destruction is primed to broaden

11 Jul 2017

The e-commerce giant that decimated booksellers now has supermarkets and department stores quaking in fear. That emotion should be shared by retailers’ suppliers of branded goods. Amazon’s ambitions to sell its own products poses a growing threat to the likes of P&G and 3M.