E-commerce

Jack Ma’s shopping adventures bring mixed results

1 Feb 2018

The Alibaba founder’s bets on bricks and mortar, logistics and movies weighed on the e-commerce giant’s margins in the December quarter. A 33 pct stake in payments affiliate Ant looks more promising. Even so, investors can only brace for the unpredictable impact of Ma's forays.

Walmart weighs online weapon in India’s retail war

31 Jan 2018

The U.S. grocer may buy up to 20 pct of Flipkart, Amazon's arch-enemy in India. The e-commerce firm, valued at some $12 bln, would secure a marquee backer ahead of a possible New York IPO. Walmart, which has struggled to open stores, would jump-start access to local consumers.

Amazon HQ2 choices disappointingly undisruptive

18 Jan 2018

The e-commerce giant has cut the field for its second headquarters to 20 prime locations including Dallas, Atlanta and New York. Hundreds of cities hoped Amazon would think outside the box, but a desire for talent and a welcoming environment led it to the usual hot spots.

Alibaba rival’s switch in logistics stacks up

16 Jan 2018

Chinese web retailer JD is raising $2 billion from investors to fund its warehousing and delivery unit, Reuters says. This sensible burden-sharing brings JD and Alibaba’s business models closer together. The trade-off is diluting existing shareholders in a promising venture.

Uber for everything will arrive in 2018

21 Dec 2017

The tech industry spent 2017 awash with cash and keen to disrupt the entire global economy. But loopy ideas, on everything from juice-making to how to treat co-workers, suggest a little hubris is creeping in. Breakingviews duly offers a few investment pitches for the year ahead.

India’s e-commerce war to surface on U.S. shores

20 Dec 2017

Amazon's arch-enemy Flipkart has good reason to snub Mumbai and head to New York for an IPO in 2018. Its biggest global peers are listed stateside. With SoftBank and Alibaba as backers, the $12 bln retailer is primed to take its local fight against Jeff Bezos to global investors.

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.