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A growing economy coupled with new applications and convenience of online shopping could provide a catalyst to businesses that sell merchandise through online channels.
Alibaba Group Holding Limited
Vipshop Holdings Limited
Expedia Group, Inc.
Liquidity Services, Inc.
FTD Companies, Inc.
Stocks abruptly turned negative Thursday as fears over the economic outlook following an increase in coronavirus cases resurged. The Dow and S&P 500 wiped out their week to date gains.
Amazon, which is aggressively expanding into self-driving technology, announced June 26 it had agreed to acquire the Silicon Valley company, which was founded on an ambitious effort to design a fully autonomous vehicle from scratch rather than retrofitting existing cars for self-driving. Amazon will pay $1.3 billion in cash for the takeover, which the parties hope to close by September, according to deal documents seen by Reuters. Zoox had been valued at $3.2 billion in 2018, according to data from PitchBook.
2020 has been a tale of two markets, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has definitely been the big winner. Both the Composite index and the Nasdaq 100 Index reached new highs, climbing around 0.5% and 1%, respectively, even as other market benchmarks fell. Meanwhile, Amazon.com (NASDAQ: AMZN) raced to new record heights, and while some are concerned about the nearly uninterrupted ascent for the tech giant, there are solid reasons why Amazon is doing as well as it is.
Alibaba Group Holding Limited today announced that it filed its annual report on Form 20-F for the fiscal year ended March 31, 2020.
(Bloomberg) -- Some of Wall Street’s biggest stocks are coming off their best quarterly performance in years, and with the broader economy still grappling with the pandemic, analysts are starting to express some skepticism about high-profile rallies.The S&P 500 surged 20% in the second quarter, its biggest quarterly gain since 1998. While the superlative nature of the rally was partly a function of timing -- many components hit a bottom right before the end of the first quarter -- the move was fueled by tech and internet stocks, which outperformed the benchmark and have heavy weightings due to their massive market capitalizations.Apple and Amazon.com both gained more than 40% during the quarter, making it the iPhone maker’s best quarter since 2012 and Amazon’s best since 2010.On Wednesday, Deutsche Bank confessed it was “surprised at both the speed and magnitude of the rebound” in Apple shares, adding that the move “has us nervous.” Raymond James echoed this tone on Tuesday, seeing uncertainty surrounding Apple’s forecast given an expected delay in the iPhone 12, a product Nomura Instinet expects “will fall short of a supercycle.” Both Deutsche Bank and Raymond James still recommend buying Apple shares.Amazon remains a consensus favorite on Wall Street -- more than 90% of the firms tracked by Bloomberg recommend buying it -- but the degree to which the share price exceeds analysts’ average price target is near a multiyear high, suggesting that even bulls aren’t expecting much additional upside.Among other mega-cap names, Microsoft rose 29% over the second quarter, its best such showing since 2009. Both Facebook and Google-parent Alphabet notched their biggest quarterly gain since 2013, with Facebook up 36% and Alphabet up 22%, based on its Class A shares. Netflix rose 21% last quarter.All are at or near record levels, and the rallies will soon be tested as each member of the group is scheduled to post quarterly results before the end of the month, with Netflix reporting next week.Apple EstimatesFor Apple, the rally has come despite a more tepid view for its upcoming results. Wall Street expects third-quarter earnings, excluding some items, of $2.03 a share, a consensus that is down 6.8% from where it was three months ago. The consensus for revenue has declined 0.9% over the same period.While analysts debate whether the results will justify the recent gains, many of these names are seen as potential pandemic winners. Microsoft is expected to see stronger demand for its cloud-computing and workplace collaboration products as people continue to work remotely, while the e-commerce wave lifting Amazon and others is seen as outlasting the coronavirus’s impact on brick-and-mortar stores.Apple analysts also see a number of reasons to be optimistic for the long term, including the company’s services business, wearable products, and its stock-buyback program. “Overall, we believe the directionality and reasoning behind AAPL’s stock rise,” Deutsche Bank’s Jeriel Ong wrote. Still, the firm has “ambivalence at these levels.”Firms expressed a similar sentiment about Netflix, which has seen higher engagement during the pandemic. Rosenblatt Securities “struggle[s] to see the upside” from current levels given “uncertainty over how [long] this favorable environment will last.” Stifel continues “to grapple with the risk/reward profile given limited 2H visibility.”Imperial Capital downgraded the stock earlier this week, moving away from an outperform rating that it had held since starting coverage on Netflix about two years ago, according to data compiled by Bloomberg. Following the recent advance, Netflix “will begin a fairly extensive range-bound trend as other long opportunities emerge in the media space,” the firm said.(Removes reference to Microsoft reporting next week in seventh paragraph of story originally published July 8.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Amazon Web Services, Inc. (AWS), an Amazon.com company (NASDAQ: AMZN), announced the general availability of AWS IoT SiteWise
What happened Shares of AMC Networks (NASDAQ: AMCX), the cable network operator, were climbing today on reports that the company was hiring advisors to potentially seek a sale. As a result, the stock was up 4.
Netflix (NASDAQ: NFLX) is set to report second-quarter earnings on July 16, and the news could lift the streaming platform's per-share price even further past the all-time high it just hit above $500. Also, churn plays a role in Netflix's net additions, and defections have likely fallen during the crisis as there are few other entertainment outlets available.
In this episode of Industry Focus: Consumer Goods, Emily Flippen and Motley Fool contributor Dan Kline take a deep dive into a high-performing yet underrated retail brand. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. This week, I'm joined by Motley Fool contributor Dan Kline as we take a deep dive into one of the most, in my opinion, underrated retail winners of the past decade: Tractor Supply Company (NASDAQ: TSCO).
Retail foot traffic sees a speedy dip with the recent spurt in coronavirus cases. Shoppers are again avoiding stores, raising doubts over retail recovery while strengthening the e-commerce craze.
(Bloomberg) -- Vanguard Group Inc., the New York Stock Exchange and Nasdaq Inc. are getting their chance push back on an escalating risk to their bottom lines: threats from Capitol Hill and the Trump administration to dramatically curtail U.S. investments in Chinese companies.The U.S. financial titans are among firms participating Thursday in a Securities and Exchange Commission event that’s being held to debate the potential perils Americans face when investing in China and other emerging markets.Click Here to Watch a Webcast of the SEC RoundtableThe seemingly benign topic belies an extremely contentious backdrop in Washington. The Senate unanimously passed a bill in May that’s now under consideration in the House that could lead to Alibaba Group Holding Ltd., Baidu Inc. and additional Chinese businesses being kicked out of U.S. stock markets.The legislation’s Republican and Democratic backers say it’s needed to protect investors from fraud because China isn’t complying with U.S. regulations that require corporate audits to be scrutinized by accounting regulators.The issue has attracted the attention of President Donald Trump, who has ratcheted up his attacks on Beijing over the coronavirus pandemic and as U.S.-China tensions mount due to Hong Kong. Trump has ordered regulators to review Chinese companies’ lack of adherence to U.S. accounting rules and submit recommendations by early August on how to fix the problem, putting the SEC at the center of the fight. The president’s critiques come as slumping poll numbers show he faces a difficult road to winning re-election in November.Big MoneyVanguard is among giant money managers whose mutual funds invest in Chinese businesses listed on U.S. exchanges, while NYSE and Nasdaq make millions of dollars in fees by allowing Chinese shares to be traded on their platforms. Thursday’s SEC roundtable offers the financial firms the chance to tout the benefits of allowing American investors to tap fast-growing emerging markets and offer their own ideas for potential reforms.“While it is premature to speculate on the possible impacts of pending legislation, Vanguard believes that global diversification and investing in China is beneficial for investors,” the company said in a statement.NYSE said it’s “pleased to come together with industry participants to advance the dialogue on how we can best ensure that U.S. capital markets remain the envy of the world.” In a July 8 comment letter to the SEC, Nasdaq Chief Legal Officer John Zecca said the exchange operator hopes the roundtable will “generate actionable solutions to address the risks posed by certain emerging market companies.”Read More: Wall Street Struggles to Avert Peril in Trump’s China-Stock FeudThe event is also featuring SEC staff and executives from major accounting firms. It’s not expected to result in swift policy changes as most regulations take months or even years to enact.An early panel at the SEC roundtable included considerable China bashing courtesy of famous short seller Carson Block. The Muddy Waters Capital founder said that when Chinese companies trading in the U.S. blow up, American affiliates of global accounting firms should be held financially responsible. The proposal is provocative because U.S. accounting firms have no role in scrutinizing the books of Chinese companies, which are typically examined by Chinese audit affiliates. Block, who has long argued that Chinese businesses lack transparency and are ripping off U.S. investors, said audits of such firms amount to a “rubber stamp.” Luckin ScandalAdding urgency to the debate over Chinese companies is this year’s high-profile accounting scandal at Luckin Coffee Inc. Since reaching a high of $50 a share in January, the Chinese chain has cratered more than 90% in Nasdaq trading, a plunge that’s erased about $11 billion of market value. Following an internal investigation, Luckin disclosed earlier this month that fabricated transactions had inflated its 2019 revenue by about $300 million.The bill that cleared the Senate would kick Chinese firms out of U.S. markets if they don’t cooperate with inspectors at the Public Company Accounting Oversight Board for three straight years. SEC Chairman Jay Clayton has said he supports the legislation because denying access to PCAOB examiners creates an “unlevel playing field” for U.S. investors.Read More: How China Stars Like Alibaba May Be Forced From U.S.Clayton, in remarks prepared for Thursday’s event, said he expected the panelists’ comments to inform recommendations that regulators are preparing for Trump. The requirement that all companies that trade on U.S. exchanges submit their audits for PCAOB inspections was implemented in the wake of Enron Corp.’s 2001 accounting scandal. There are more than 200 Chinese corporations that have been allowed to sell shares in the U.S. without complying, according to the PCAOB. Their market capitalization is roughly $1.8 trillion, with Alibaba making up about one-third of the total.(Updates with comments from event starting in eleventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Walmart (NYSE: WMT) is launching a new subscription service this month, reportedly called Walmart+. It'll build on Walmart's Delivery Unlimited subscription offering and cost the same: $98 per year. Walmart+ could add benefits like discounts on fuel at Walmart gas stations and early access to product deals, according to a report from Recode.
Shares of Expedia (NASDAQ: EXPE) fell 24% during the first half of 2020, according to data from S&P Global Market Intelligence. The online travel agent felt the brunt of the COVID-19 pandemic, which basically brought the travel industry to a screeching halt in late March. While that might seem like a dire decline, Expedia had been down nearly 60% on the year at one point, and has actually rebounded strongly since.
Shares of online postage seller Stamps.com (NASDAQ: STMP) soared 120% in the first half of 2020, according to data from S&P Global Market Intelligence. In 2020, Stamps.com stock is up 145% through July 8, compared with the broader market's negative 1% return so far this year. The chart below shows the stock's surges after the company reported Q4 2019 results on Feb. 19 and Q1 2020 results on May 7.
Growing initiatives by Walmart (WMT), Target, Costco and others are likely to pose a serious challenge to Amazon's e-commerce lead.
With the likelihood for additional lockdowns looming, and no end in sight to the stay-at-home and remote work orders still blanketing the nation, the potential for another market crash seems to be rising with each passing day. Given the diversity of its offerings and the tailwinds caused by changing consumer behavior, Amazon.com (NASDAQ: AMZN) is best-positioned to withstand another market crash. History is the best teacher, so it's worth taking a look back at what happened between February and March, as it provides important clues to what could be ahead for Amazon.
Wayfair Schedules Second Quarter 2020 Earnings Release and Conference Call
With people now preferring to work remotely due to growing number of coronavirus cases, investments in the cloud space have increased.
Cloud computing has been a promising investment theme in recent years. As NVIDIA (NASDAQ: NVDA) CEO Jensen Huang said on a recent conference call, "The basic computing elements are now storage servers, CPU servers, and GPU servers and are composed and orchestrated by hyperscale applications that are serving millions of users simultaneously." Research firm Gartner previously forecast that the total cloud computing market will grow 17% this year to reach $266 billion, and that was before a global pandemic accelerated the trend.
In the raging war of Walmart versus Amazon, the brand new subscription service Walmart+ is its latest move to grab the latter's market share.
Like most businesses, Macy's (NYSE: M) is experiencing significant disruptions in its operations because of the COVID-19 pandemic. Macy's started reopening stores on May 4. Macy's is adjusting its Polaris strategy.