E-commerce

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.

Smurfit US deal would paper over post-Covid downer

7 Sep 2023

Europe’s No. 1 seller of boxes used by the likes of Amazon may merge with US peer WestRock to form a $20 bln giant. Smurfit Kappa snubbed a similar transatlantic deal in 2018. This time, synergies offer a logical way to offset a waning trend in pandemic-era home deliveries.

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

Capital Calls: Walmart’s Goldilocks moment

17 Aug 2023

Concise views on global finance: The $431 bln US retailer’s valuation has held up much better than Target and Amazon, validated by another strong quarter. But it has done that only by keeping its multiple steady.

Arm IPO depends on more than Big Tech support

14 Aug 2023

The UK chip designer may sell shares to Apple or Amazon as part of its $10 bln stock offering. Backing from large clients could help prop up its valuation. But antitrust concerns mean the stakes will be small. To succeed, owner SoftBank needs to win over big institutional funds.

Everyone is trying to steal Amazon’s cloud thunder

3 Aug 2023

Growth at the $1.3 trln company’s AWS cash engine leaped a low bar, beating expectations but lagging peers. With rivals increasingly leaning on cloud and AI hype, boss Andy Jassy’s task of keeping enough share to buoy improving but less-profitable operations gets ever tougher.

PayPal pays price for prolonged CEO hunt

3 Aug 2023

Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.

Fast-fashion wars are warmup for Amazon battle

1 Aug 2023

E-commerce app Temu is taking on larger rival Shein in selling cheap Chinese-made goods to Western consumers. The company owned by $119 bln PDD offers a broader range, making it more like an online dollar store. That puts it on a collision course with the $1.4 trln US titan.

Capital Calls: Sequoia, Heineken, Moneyball

31 Jul 2023

Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.

Carlyle beats deal arbitrageurs at their own game

26 Jul 2023

The buyout shop’s loan to Roomba-maker iRobot should give the company time to sew up its $1.7 bln sale to Amazon. The lifeline, which also triggered a 15% cut to the purchase price, doesn’t come free. Heads-I-win-tails-you-lose terms extract value from existing shareholders.

Amazon-EU web content spat is all about grey areas

20 Jul 2023

The $1.4 trln e-commerce giant is fighting Brussels’ decision to class it as a large online platform and hence face extra scrutiny. Given its size, Amazon’s challenge at first looks like a long shot. Yet the legislation’s vague language creates scope for disputes.

Amazon’s fumbled M&A leaves few good options

13 Jul 2023

The $1.3 trln giant splurged on grocer Whole Foods and movie studio MGM. But it hasn’t disrupted these sectors as hoped. Instead, both divisions are becoming more expensive and less promising. Ditching one would be an option if it weren’t so financially painful.

Capital Calls: Blackstone’s bright property sale

26 Jun 2023

Concise views on global finance: The investment firm led by Steve Schwarzman is selling a group of warehouses to Prologis for $3 bln, demonstrating that some parts of the troubled commercial real estate industry are holding up.

Alibaba shakeup hints at changing China tech role

20 Jun 2023

Boss Daniel Zhang will step down to run the e-commerce group’s cloud business. Replacing him at the parent group with veterans like globe-trotting financier Joe Tsai looks sensible amid a tricky breakup. It also implies that newer ventures, like cloud, are gaining strategic heft.

Shein tries to thread US-China needle

5 Jun 2023

The $66 bln fast-fashion phenom is a formidable rival to Zara and H&M thanks to its data prowess and efficient Chinese supply chains – despite the trade war. Now geopolitics is forcing the company to rethink its identity right before it tries to list in the US.

Pinduoduo’s “global” brand masks identity crisis

29 May 2023

The $95 bln group is trying to disassociate itself from China as overseas suspicion of Beijing’s influence over apps rises. As with TikTok, relocating corporate structures is unconvincing. True separation means costly overhauls to supply chains, data practices and more.

Office landlords are in store for retail redux

19 May 2023

The vacancy rate for US buildings reached a 30-year high as fewer people return to work and companies cut costs. Retail owners had a similar sob story when e-commerce and a recession hit. A slowdown in building helped to boost rents. Office landlords could have a similar restart.

Capital Calls: BT, Mediobanca

18 May 2023

Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.

Capital Calls: Sea

17 May 2023

Concise views on global finance: Founder Forrest Li is trying to shore up faith in the company’s newfound profitable status but a miss on earnings and 18% drop in its shares is a reality check.

Capital Calls: Amazon, Aramco

9 May 2023

Concise views on global finance: Rising costs and cautious consumers are driving the e-commerce giant to sell goods through mobile games and push incentives; the $2 trillion Saudi oil company’s new dividend policy is one way to interest investors in future share sales.