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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.
Here's why Tesla's stock continues to be on fire.
Amazon.com (NASDAQ: AMZN) shares rose 13% in June, according to data provided by S&P Global Market Intelligence. Amazon stood out early in the crisis as a stock to buy as consumers stockpiled their pantries with essentials and opted for online shopping. At the same time, Amazon Web Services (AWS), the company's cloud-computing business, saw demand linked to the outbreak as well.
Amazon (NASDAQ: AMZN) has been stealing away Google's most valuable searches over the last several years. More product searches begin on Amazon.com than the search engine owned by Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). In order to combat the growing popularity of product searches on Amazon, Google's offering brands and retailers free listings on its main search results.
Does Amazon (AMZN) have what it takes to be a top stock pick for momentum investors? Let's find out.
(Bloomberg) -- Colin Huang’s ascent is one for the history books: In just six months, his fortune swelled by $25 billion -- one of the biggest gains among the world’s richest people.His Pinduoduo Inc., a Groupon-like shopping app he founded in 2015, has become China’s third-largest e-commerce platform, with a market value of more than $100 billion. In the first quarter, as the coronavirus pandemic caused most of the nation’s economy to grind to a halt, PDD’s active users surged 68% and revenue jumped 44%, the company said in May.Now Huang, who has overseen the firm as its American depositary receipts have more than quadrupled in less than two years, has stepped down as chief executive officer.At one point, his net worth climbed as high as $45 billion, placing him just behind China’s wealthiest people -- Tencent Holdings Ltd.’s Pony Ma and Alibaba Group Holding Ltd.’s Jack Ma -- on the Bloomberg Billionaires Index. That’s even as PDD continued to post losses, primarily because it chases growth with the help of generous subsidies and has been known to spend more on marketing than it earns in sales.“Pinduoduo was perfectly positioned for people being stuck at home,” said Tom Ronk, CEO of Century Pacific Investments in Newport, California.Huang, who controlled 43.3% of PDD shares, has reduced his stake to 29.4%, according to a June 30 regulatory filing. His fortune now stands at $30 billion.That excludes a $2.4 billion charitable holding that he shares with PDD’s founding team, and $7.9 billion that went to Pinduoduo Partnership, of which Huang and newly named CEO Lei Chen are members. The partnership will help fund science research and management incentives, according to a letter following Huang’s resignation. The wealth estimate also excludes $3.9 billion that people familiar with the matter said was transferred to an angel investor.PDD declined to comment on Huang’s holdings or net worth.Facing ChallengesHe will remain chairman and work on the company’s long-term strategy and corporate structure to help drive the future of the e-commerce giant, PDD said.“PDD is still facing some high-level challenges in product supply, relationship with brand merchants, logistics and payments,” said Shawn Yang, an analyst at Blue Lotus Capital Advisors. “Colin may want to focus more on these issues.”PDD’s success hinges on deals, which have become particularly popular with customers looking for bargains as the world’s second-largest economy slows. Most of its users come from smaller Chinese cities, and the app gives them extra discounts when they recommend a product through social networks and get friends to buy the same item.Fen Liu, a homemaker in Chenzhou, a provincial city in south Hunan, said she accrued enough coupons with her friends’ help to reduce the price of a suitcase to zero.“I couldn’t believe my eyes when I saw my suitcase arrive in the mail,” she said. “It’s made me a loyal Pinduoduo user ever since.”‘Bargain Hunters’While PDD’s aggressive price-reduction strategies have helped win over people with lower incomes, they may stifle the company’s efforts to attract wealthier consumers, according to Charlie Chen and Veronica Shen, analysts at China Renaissance Securities in Hong Kong.“PDD’s users are largely bargain hunters reluctant to buy large-ticket items,” they wrote in a June 29 note, adding that the company’s image remains a key obstacle to users spending more. “We believe PDD is working to change its low-price brand image -- but this could be costly.”That may require heavy marketing and hurt margins further despite a strong user-base foundation for future growth, the analysts said. And PDD’s management has offered no clear path to profitability.Last year, the company’s “10 Billion RMB Subsidies” campaign, which is ongoing, led to a $2 billion increase in sales and marketing expenses to $3.9 billion, and those costs have been at 90% to 120% of revenue for the past two quarters, China Renaissance said.For the nation’s June 18 shopping festival, PDD provided a subsidy program with no cap across different product categories to push spending and attract more users. Other fast-growing Chinese startups -- including rival Meituan Dianping, ride-hailing app DiDi Chuxing and Starbucks Corp. competitor Luckin Coffee Inc. -- have also adopted subsidies strategies to maintain customer loyalty.Huang, 40, grew up in the eastern city of Hangzhou, where Alibaba has its headquarters. After receiving a degree at Zhejiang University, he went to the University of Wisconsin for a master’s in computer science. He began his career at Google in 2004 as a software engineer and returned to China in 2006 to help establish its operations in the country.He then became a serial entrepreneur. He started his first company in 2007, an e-commerce website called Ouku.com that he sold three years later after realizing it was too similar to thousands of others. He then launched Leqi, which helped companies market their services on websites like Alibaba’s Taobao or JD.com Inc., and a gaming firm that let users play on Tencent’s messaging app WeChat. Both took off and Huang found himself “financially free,” according to a 2017 interview.After getting an ear infection, he decided to retire in 2013 at age 33. But following a year of pondering what to do with his life -- he contemplated starting a hedge fund and moving to the U.S. -- he came up with the idea of combining e-commerce and social media. At the time, Alibaba dominated the online business, and WeChat became a must-have application on smartphones in China.The tables have turned since. In 2018, Alibaba launched a PDD-style app in an attempt to lure smaller-town users with bargains. It came months before Huang took his company public in New York, raising $1.63 billion in its July 2018 initial public offering. Since then, PDD has surged 350%, while Alibaba has gained just 9.1%.In 2017, Huang had said he was unlikely to spend the rest of his life at PDD. While he’s still chairman of the company, he now wants to give more responsibility to younger colleagues to keep the entrepreneurial spirit as PDD matures, he wrote in a letter to employees.“We envision Pinduoduo to be an organization that creates value for the public rather than being a showoff trophy for a few or carry too much personal color,” Huang said. “This will allow Pinduoduo to continually evolve with or without us one day.”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.
The coronavirus pandemic has made life difficult for businesses that rely on in-store traffic and those that sell products and services that aren't considered essential. Viemed Healthcare (NASDAQ: VMD) is a company that sells ventilators, so it's no surprise that it's been soaring this year, up over 50% year to date as the S&P 500 has fallen 4%. There's been concern that there may not be enough ventilators to help patients with COVID-19.
Vipshop Holdings (NYSE:VIPS) has had a great run on the share market with its stock up by a significant 31% over the...
By John Jannarone goPuff’s delivery volume rose 400% in the first half of 2020, according to sources goPuff now reaches 500 cities through over 200 distribution facilities Raised $1 billion from investors including Accel and SoftBank Vertical integration provides better customer experience and margins goPuff’s rapid expansion gives it head start and wide moat versus […]
Behind every monster stock is almost always a company driving tremendous change to an industry. Experienced investors can remember how Amazon transformed both retail -- and later -- the information technology industry. Buying Amazon or Netflix could still keep one rich.
The Australian dollar rallied a bit during the trading session after the jobs number came out in the United States better than anticipated.
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With many people stuck at home during the second quarter due to the coronavirus outbreak, engagement on all manner of streaming platforms has soared. That includes popular video-streaming services, as well as Amazon.
Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today
Target (NYSE: TGT) is adding groceries to its curbside pickup program, Drive Up. After successful tests in Minneapolis, Target expanded grocery pickup to 400 stores in the Midwest, and it plans to cover all 1,500 stores by the holidays. While all of e-commerce is growing rapidly amid the coronavirus pandemic, online grocery sales have led the way.
The owner of the world's top search engine is also leveraging the world's most-visited video platform.
Shares of Shopify (NYSE: SHOP) gained 25.3% in June, according to data from S&P Global Market Intelligence. Walmart announced on June 15 that it would feature select Shopify stores on its third-party online retail marketplace -- a development that could have big implications for the competitive landscape in the e-commerce space. Walmart is investing to build its online retail business, and bringing products from Shopify stores on to its e-commerce platform could help both companies challenge Amazon.com's dominance in the space.
Stamps.com Generates Sales of Over $4 Million in Last Week Tonight Custom Postage Stamps in Support of the USPS
Amazon may not have delivered the biggest percentage gains since the stock market bottomed out, but its performance in 2020 is pretty impressive, especially when you consider that it's the third-largest publicly traded company on the U.S. exchanges at $1.34 trillion. At no point in 2020 has Amazon's share price been down more than 9% on a year-to-date closing basis. What's more, the company's year-to-date gain (through June 29) of 45% represents a 50-percentage-point outperformance of the benchmark S&P 500.
A handful of corporate behemoths has skyrocketed YTD. Some of these stocks carry a favorable Zacks Rank and have rallied more than 20% YTD.
Daily forecast and trading signals of forex majors, commodities, cryptocurrencies and indices.
Amazon (NASDAQ: AMZN) is facing significant disruptions in its business as a result of the COVID-19 pandemic. Meanwhile, Amazon is making adjustments to fulfill the increase in orders while keeping frontline workers safe. Amazon borrows $10 billion to reinforce its balance sheet.
(Bloomberg) -- Sony Corp. is weighing a bid for Leyou Technologies Holdings Ltd., people familiar with the matter said, paving the way for an intensified bidding war for the Hong Kong-listed gaming firm.The Japanese tech giant is working with a financial adviser on the potential offer for Leyou, said the people, asking not to be identified because the matter is private. In May, the Chinese gaming firm confirmed it had received a non-binding takeover offer from Shenzhen-listed rival Zhejiang Century Huatong Group Co., after months of buyout talks with other bidders including iDreamSky Technology Holdings Ltd.Shares of Leyou extended their gains to as much as 9.8% after the Bloomberg News report. The stock has risen about 20% this year, giving the company a market value of about $1.1 billion.Leyou’s controlling shareholder Charles Yuk had been in talks with iDreamSky for a majority stake sale since late last year. iDreamSky, which counts Tencent Holdings Ltd. among its investors, had been in discussions with CVC Capital Partners for a joint offer valuing Leyou at about $1.23 billion but the Covid-19 pandemic brought their talks to a stalemate, Bloomberg News reported in April.Sony is hoping that it can edge out other bidders with greater certainty of financing, the people said. Leyou’s Yuk aims to choose a buyer and sign an agreement as soon as this month, the people said.Talks are still ongoing and no final decision has been made, the people said. Other bidders could still emerge, they said. Representatives for Leyou and Sony declined to comment.Leyou was listed in Hong Kong in 2011 and counts among its titles the free shooting games Warframe and Dirty Bomb. It’s also working with Amazon.com Inc. to co-produce a video game based on the popular fantasy series “The Lord of the Rings,” according to its website.Sony has recently been aiming to beef up its content arsenal as the tech giant’s chief executive officer Kenichiro Yoshida believes that would in turn strengthen the value of its branded consumer electronics hardware. That includes PlayStation 5, the new video game console that the company plans to launch at the end of this year.Leyou’s Warframe is already available on PlayStation 4 and the company has said in its latest earnings report that it plans to expand the game to more platforms including the next-generation consoles.(Updates with more background from the seventh 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.
The direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the pivot at .6933.
For Chinese cloud services companies, the coronavirus outbreak has become a rainmaker, bringing in new business far and wide as firms shift work online and authorities develop apps and systems to help contain outbreaks and manage social restrictions. For Tencent Holdings Ltd in particular, it has also become the perfect time to flex new muscles as it seeks to catch up with Alibaba Group Holding Ltd, its arch-rival and the dominant player in the country's cloud market by far. Tencent began to display a new level of aggressiveness after positioning its cloud business as a major area of growth in September 2018, and that has only amped up amid the pandemic, employees say.