E-commerce

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.

Capital Calls: Didi delists from the NYSE

24 May 2022

Concise views on global finance: Shareholders have voted to remove the beleaguered ride-hailing service from the Big Board. One way to play the company now is as a risky bet on which road Beijing’s regulators decide to take.

Capital Calls: Richemont’s China fears, THG offer

20 May 2022

Concise views on global finance: Shares in the Cartier owner shed 13% after caution about a rebound in the People’s Republic added to subpar full-year results and slow progress on the YOOX Net-a-Porter sale; the UK online retailer rejected one bid, yet higher ones look unlikely.

Klarna’s $46 bln price tag endures only in theory

19 May 2022

Investors heavily marked down the value of the Swedish startup’s buy-now-pay-later rivals like Affirm. On their sales multiples, privately held Klarna’s valuation would be cut by 75%. While the business is diversified with better funding, it still requires lots of red pen.

Zara owner has $10 bln for online shopping spree

18 May 2022

Marta Ortega, the fresh-faced boss of the world’s largest fashion retailer, is sitting on a record cash pile. Typically, such spoils trickle back to shareholders as special dividends. But with its battered share price, buying an online upstart like Zalando may create more value.

Amazon takes hit from foggy outlook

28 Apr 2022

The e-commerce giant shed nearly $140 bln in market value after it forecast sluggish sales growth. The pandemic was good for Amazon and other online retailers. Now, while cloud services remain a bright spot, shipping, wage costs and macroeconomic factors are stumbling blocks.

Capital Calls: Gap falls through the inflation gap

22 Apr 2022

Concise views on global finance: Shares in the clothing retailer fell over 19% after the company warned of a sharper drop in sales and announced the departure of Nancy Green, the boss of its Old Navy unit.

Capital Calls: THG’s lowball bids

21 Apr 2022

Concise views on global finance: Britain’s 1.4 bln pound lipstick-to-protein-shake maker THG rejects “numerous” bids as it warns of higher costs.

Capital Calls: GoTo debuts in smart fashion

11 Apr 2022

Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Instacart’s painful price cut may not be enough

25 Mar 2022

The grocery delivery service firm slashed its valuation by nearly 40% to $24 bln. That’s partly a reflection of peers’ market prices. But based on sales, it’s still valued twice as high as DoorDash. With competition growing from Amazon and Walmart, a further cut may be in store.

The Covid effect: Sheds, Hong Kong, Conferences

24 Mar 2022

The pandemic continues to shape business and policy around the world. In this Viewsroom podcast, Breakingviews columnists debate a possible 21 bln euro bid for city-centre warehouses, the relaxing of restrictions in Hong Kong, and a recent conflab of M&A advisers in New Orleans.

Prologis has to go extra mile for Blackstone sheds

22 Mar 2022

The property giant offered over $23 bln for Mileway, which owns European warehouses. Sky-high valuations and frenetic M&A imply it’s a good time for Steve Schwarzman’s group to cash out. But limited city space and booming online deliveries mean asset values can keep rising.

How Mad Men are waking up to the metaverse

22 Mar 2022

The pandemic sped up the shift to online advertising and e-commerce. In this episode of The Exchange Mark Read, CEO of WPP, tells how his clients coped with Covid-19, why virtual reality is the next big thing for consumer giants, and why corporate purpose is more than a buzzword.

Alibaba’s $400 bln selloff makes case for buybacks

24 Feb 2022

The Chinese giant delivered a dismal set of results with sales at its core business falling for the first time. After a 60% drop in the stock over the past year, a big repurchase would send a signal of confidence. With $60 bln of net cash, Alibaba can afford to splurge on itself.

India Insight: Digital diplomacy builds bridges

21 Feb 2022

Open architecture underpinning the country’s booming fintech market is being adopted by Nepal and partly by Bhutan. Google also recommended it to the U.S. Fed. It’s a cheaper way to court allies than China’s Belt and Road projects. The soft power returns are valuable too.

Walmart’s trusty talent is less use in new domain

17 Feb 2022

The $375 bln company’s stronger-than-expected sales and profit are testament to its ability to manage inflation and supply chain pressures. A push into advertising and subscriptions is taking the retailer closer to Amazon’s turf. It will be harder to shine in this territory.

Chinese e-commerce IPO hawks an Alibaba antithesis

17 Feb 2022

Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It's a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company's Hong Kong stock sale ticks some of the right boxes.

Shopify plays to one trend, bucks another

16 Feb 2022

The Canadian e-commerce firm’s shares fell after it said it’s shifting towards a more Amazon-like model of operating warehouses. Having surfed the online shopping wave, Shopify risks losing investors who have chased the asset-light tech craze too.

Canada’s tech darling may be headed for a fall

14 Feb 2022

Shopify already fell off its perch as Canada’s most valuable listed company, but the e-commerce giant’s $105 bln valuation is still in the stratosphere, at over 100 times forecast EBITDA. With tech investors jittery, even a minor slipup could lead to a sizeable correction.