E-commerce

Amazon is already valued like a monopoly

19 Sep 2022

The $1.3 trln retailer is facing its biggest legal challenge yet after California sued it for antitrust violations. The company said the suit had it “exactly backwards." Investors – who value Amazon as if it is capturing a huge part of U.S. e-commerce– seem to think otherwise.

Grocers’ crisis defences look shaky

13 Sep 2022

Morrisons lost its top-four UK position to Aldi, while Ocado’s online sales are under pressure. Competition from discounters means supermarkets have less scope to raise prices and protect margins than in past slowdowns. The bleak outlook has yet to reach stock valuations.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Big American dreams mark peak China e-commerce

30 Aug 2022

Shares of Alibaba challenger Pinduoduo jumped 15% after smashing earnings expectations. It is doing well chasing down its rival but the company’s march to U.S. shores, inspired by the success of mysterious fast-fashion retailer Shein, is a telling sign of a limited runway at home.

Richemont finds tolerable way to refocus

24 Aug 2022

The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.

Fintech’s next big down round may have an upside

24 Aug 2022

After pay-later group Klarna raised cash at an 85% discount to its previous valuation, candidates for the next giant markdown include $25 bln Chime and $32 bln FTX. But it isn’t all bad news. By raising money when others can’t, they could grab market share or scoop up rivals.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

SoftBank’s Alibaba sale could end breakup taboo

10 Aug 2022

Masayoshi Son’s group will cut its stake in the Chinese e-commerce giant to 15% from 24%. It’s a sensible, albeit belated, move. The holding contributes to a 55% conglomerate discount, which would be narrowed further by spinning off Arm and selling more of its Japanese telco.

Alibaba offers false ray of China’s economic dawn

4 Aug 2022

Quarterly revenue at the $260 bln e-commerce giant was flat, beating horrid expectations. As lockdowns ease, the hope is that consumers will spend more. But online advertisers, Alibaba’s core customers, are cutting budgets, suggesting a protracted slowdown is on its way.

Amazon’s brick-and-mortar vision is still blurry

28 Jul 2022

The $1.2 trln tech giant’s purchase of Whole Foods was meant to transform the grocery business. Instead, sales at physical stores have languished and without e-commerce profits, it’s hard to see how one benefits the other. Investors waiting for a revolution will keep waiting.

Capital Calls: Spotify hums along

27 Jul 2022

Concise views on global finance: The music service led by Daniel Ek added more subscribers and revenue in the quarter outperforming Netflix and Twitter.

Capital Calls: Shopify’s mea culpa

26 Jul 2022

Concise views on global finance: A memo from the e-commerce company’s CEO spells out how they miscalculated the "new normal."

Capital Calls: Amazon/Just Eat Takeaway

6 Jul 2022

Concise views on global finance: The $1.2 trillion e-commerce giant is reprising its deal offering Prime subscribers membership of UK food delivery outfit Deliveroo with the U.S. arm of its $3 billion Dutch rival.

Kohl’s risks being left on a lonely retail shelf

30 Jun 2022

U.S. retail sales are falling, big store chains have overstocked, and inflation is spooking consumers. That raises pressure on the underperforming Kohl's, which is weighing a potential offer from Franchise Group. If a deal materializes, it will be hard to refuse.

E-commerce may be beauty behemoths’ next makeover

29 Jun 2022

L’Oréal and Estée Lauder like to plug small brands into their sprawling networks. That could plump up the sales and profitability of a trendy online makeup group like $1.5 bln e.l.f. Applying its skill in selling direct to consumers would add gloss to their own brands as well.

Drug sellers brave clinic on China’s tech habits

23 Jun 2022

Alibaba and JD.com's drug units fell nearly 15% on fears of a ban on marketplace operators from acting as vendors. In theory, companies could oust third party sellers without much self-harm but consumers may pay more. It’s a timely test of Beijing’s support for the platform economy.

Battered online retailers need new fashion model

16 Jun 2022

Shares in ASOS and Zalando are in full-on retreat as cash-strapped consumers send back unwanted clothes. Scrapping free returns, as 69 bln euro Inditex has done, will cut costs but also dent sales. But with inflation squeezing disposable spending, a radical rethink is required.

Cricket rights will bowl India Inc a new line-up

10 Jun 2022

A third of teams in the sport’s premier league fit poorly with owners like Diageo. One, Reliance, wants the broadcast rights too. CVC’s entry into the club creates more uncanny parallels to a changing corporate India. The outcome of the $6 bln TV auction may spur a clean-up.

Capital Calls: Twitter snubs investors

27 May 2022

Concise views on global finance: The social media platform refused to accept the resignation of director Egon Durban, one more check for bad corporate governance. But it’s not like investors have held the company to a high standard.

Shopify’s governance revamp is so 2021

26 May 2022

Shareholders are being asked to give Tobi Lütke the ability to keep his voting power even if his ownership stake falls. That might have been palatable at the end of last year, when Shopify’s shares were worth five times as much as they are now. Now it just adds insult to injury.