Tag Archives: Amazon

Walmart`s online business is growing but it has come at a cost to profitability

Walmart is the world`s third largest employer by numer of employees. 2,2 million worldwide last year with 1,5 million in the U.S and 700,000 international. Walmart Inc is an American mutinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores.

The company is expedted to report earnings on Thursday 15 before market open. The report wil be for the fiscal Quarter ending July 2019. The consensus EPS forecast for the quarter is $1,22, and the report for the same quarter last year was $1,29.

As of April 30, 2019, Walmart has 11,368 stores and clubs in 27 countries, operating under 55 different names. The company is the world`s largest company by revenue, with US$514,405 billion. It is a publicly traded family-owned business, as the company is controlled by the Walton family.

So far in 2019, Walmart is the largest U.S grocery retailer, and 65 percent of Walmart`s US$510,329 billion sales came from U.S operations. Their investments outside America have seen mixed results. Its operations and subsidiaries in the U.K, Central and South America, and China are highly successful, whereas its venture failed in Germany and South Korea.

Their approach to Amazon`s busines model and international expansion will continue to lift the company further. The street is looking for a top-line growth of 1,7 percent but there is concerns over the impact of trade war.

Many investors will watch out for the margins on the report as the cost of some of the goods are changing. JPMorgan has estimated in a report that the company could see up to 40 percent reduction in operating profit because of the tariffs on Chinese imports. But that will have an impact on the next quarter.

The online sales is a success and its going straight up. The e-commerce activity are up 37 percent YoY. They compete with Amazon and they are both speeding up their delivery times. In my recent article the headline was retail acopalypse, but what about Walmart?

They have also closed a lot of stores but Walmart has the best developed web grocery business with 2,450 stores offering curbside order pickup.

Walmart`s online growth has come at a cost to profitability, though. Gross margins of 24,3 percent were in line with analysts estimates but did mark a slight YoY contraction. That can be attributed to higher labor costs, plus online sales that typically deliver lower margins that in-store sales.

The company also said in a report that transportation expenses have eased somewhat this year. CFO Brett Biggs recently said; “Our first quarter results put us in a good position to achieve full-year goals.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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Amazon India is in early stage talks to acquire Uber Eats India

Investors lifted Lyft yesterday. Will they do the same with Uber Technologies which is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2019. The consensus EPS forecast for the quarter is $-3,30.

The New York City Taxi and Limousine Commission votes to extend the cap on the number of permitted Uber drivers in the city for an additional 12 months. Earlier this year, NYC enacted minimum wage rules for ride-hail drivers.

Uber thinks it`s unlikely to receive a five-year license to operate in London, but the ride-hail company expects Transport for London to award a another fifteen-month, short-term license.

Amazon India is interested in entering the food delivery business so that it can add it to the list of services it provides and Amazon is in early stage talks to acquire Uber Eats India, according to Business Standard.

Deliveroo which is backed by Uber and Amazon are planning to acquire the Spanish food delivery startup Glovo. The company was last valued at $950 million and they are planning to go public in 2020.

GrubHub and Just Eat are planning to compete with Uber Eats and Amazon-backed Deliveroo, and they`re in the early stages of a $10 billion merger.

Street consensus calls for revenue of $3,3 billion which is up from Uber`s first-quarter revenue of $3,1 billion with an adjusted Ebitda loss of $869 million. Some investors are worried by Uber`s competiton in the global market and they are concerned about the ability to ever reach profitability.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Facebook has partnered with Visa and Paypal and they will launch Libra on Tuesday

I have been watching Bitcoin and the cryptocurrency market for years now, and so far it has been a bumpy ride. Its not mainstream yet and it seems like Bitcoin is just for traders, and not a currency people around the world use to buy things with. But Facebooks Libra can be a gamechanger.

Mark Zuckerberg and his team is expected to provide details about its brand new cryptocurrency called Libra in a white paper set for release on Tuesday. Only a few trade with Bitcoin, but what do you think will happen if nearly 3 billion users on Facebook start to trade with Libra?

Facebook has partnered with companies like Visa, Paypal and Uber to name a few. They have all invested in the cryptocurrency and will help to oversee its use. Libra will be tied to several traditional fiat currencies in a bid to protect Libra from price volatility.

Bitcoin and the comming cryptocurrency Libra is not alone in the market. There are hundreds of other cryptocurrensies out there and there is more to come. What do you think will happen when Google and Amazon is joining the club?

Barclays analyst Ross Sandler predicted earlier this year that the digital currency could produce as much as $19 billion in new revenue in just two year for Facebook alone. It will be one of the most important milestones for Facebook in the history of the company.

Facebook can really help countries in need. Facebook`s Libra can provide a more stable market in areas with volatile currencies and unstable governments. It can be helpful for countries like Venezuela and other countries with ridiculous inflation.

Mark Zuckerberg`s brand new cryptocurrency platform could provide the embattled social media giant with a new revenue stream of historic proportions as it contends with a possible fedral antitrust probe and continued scrutiny over its data privacy practices.

Facebook`s long-awaited cryptocurrency payments plan will be exposed on Tuesday and analysts are bullish. This is a big and historic moment for Facebook and the world.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The public cloud market is expected to reach $411 Billion by 2020 and one of the fastest growing cloud provider in the world is Alibaba

Alibaba Group Holding Limited has declined since March this year after recent trade war fears. It`s not fair if you look at the numbers. The company boasted a five-year CAGR of over 40 percent, and their revenue is primarily driven by core e-commerce.

Alibaba`s Market cap is $464,72 Billion, and that valuation is good if you look at their potential for growth like cloud computing which is growing fast. They are also expanding in the Indian market with good help from Softbank.

Softbank has already acquired many important startup companies in India, and India will be one of the most important markets for Alibaba in the future. Alibaba and their ally Softbank will therefore build its business on companies that is already operating in the Indian market instead of doing it all from scratch.

The online retail market in India is growing fast and Alibaba can grow in this sector despite the fact that they are late into the market. Alibaba led a funding round of $300 million in online grocer Big Basket at a valuation of $950 million.

But they have competitors. Amazon will invest over $5 Billion in Amazon India, and Valmart wants to buy about 80 percent stake in Flipkart. Valmart is willing to pay about $12 Billion. Alibaba will also earn from Softbank`s investment in rival online grocer Grofers.

Alibaba`s core commerce segment comprises marketplaces operating in retail and wholesale commerce in China, and international commerce. The Cloud computing segment, which comprises Alibaba Cloud offering a complete suite of cloud services, is in top gear.

Cloud computing is good for Alibaba as more and more businesses are shifting their servers and broadband subscriptions to cloud computing technology in order to streamline costs.

The public cloud market is expected to reach $411 Billion by 2020, and Alibaba with its ongoing initiatives is well posed to grab the growth opportunity. I have a good reason to belive that cloud computing will be one of Alibaba`s major growth drivers in the future.

Alibaba has expanded overseas to Singapore, Malaysia, Indonesia, Frankfurt, London, Paris, New York, San Mateo, Dubai, Seoul, Tokyo and Sydney. So far, they have more than 2,3 million customers worldwide.

In the last report, cloud computing segment increased 104 percent to US$553 million, and revenues from its core commerce segment were up 57 percent YoY to US$11,3 Billion.

Alibaba is probably the most shorted stock in the world in recent weeks after trade war fears, but their opportunity for further growth will probably exceed investors expectations. If so, Alibaba`s shares can easily jump to next target; $200.

Alibaba Group Holding Limited is expected to report earnings on May 4 before market open. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $0,7 which is well below earnings for the same quarter last year of $0,39. Last quarter, Alibaba delivered a negative earnings surprise of 1,21 percent.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Netflix`s 43 percent jump in streaming revenue was its best in history

What investor on this planet didnt like Netflixs Q1 2018 revenue growth of 43 percent? Netflix has been one of my favorite stocks in many years and is still a favorite. But what investors are concerned about is their amortization of streaming content that is not keeping pace.

Netflix`s amortization of streaming content is up «only» 33 percent which is still very good, and their earnings growth is up 60 percent YoY. This is absolutely impressive. Despite the fact that their revenue growth is astonishing, CEO Reed Hastings has sold 8 percent of his stock.

 

Netflix is still expanding and according to Financial Times, the company will raise its investment in content across Europe and plans to spend about $1 billion on original productions this year. The revised budget will be more than double that of last year.

Netflix also unveils ten new European projects, and second season of «Glow» which will be released on June 29. Those who criticize their spending should be quiet, because the growth is unbelievable for a tech company that has been on the market for more than two decades.

Netflix added 7,4 million more streaming subscribers with 5 million of them outside the U.S, and higher subscription prices on top of their growing customer base gave them a huge boost for their revenue.

Netflix`s 43 percent jump in streaming revenue was its best in history.

Netflix reported $290,1 million in net income for the first quarter and that alone is more profit in three months than the streaming company had for the entire year of 2016.

Whats really funny is to see how Netflix in their own earnings report every quarter in a shareholder letter are describing their competitors. Netflix has been in the market for a couple of decades, but the competition has changed in the past year.

Last year, they were talking about «skinny bundles» and Amazon.coms sports ambitions, but new they mentioned Amazon, Apple, Facebook, Alphabets Google, YouTube and Walt Disney. Netflix are talking much about the iPhone maker and predicted how Apple will incorporate original content it has begun to purchase.

«Apple is growing its programming, which we presume will either be bundled with Apple Music or with iOS,» Netflix said. More companies are entering the market. Apple has reported that they will invest about $1 billion on original video content.

Netflix pointed out that it doesn`t seem to think Facebook and YouTube are truly competitors, as they are supported by ads instead of subscriptions.

Their biggest competitor may be former partner Disney. They split with Netflix last year, and started its own streaming services. Disney acquired 21st Century Fox and Hulu will also be owned by Disney after the deal with Fox.

Netflix`s market cap is $132 Billion.

 

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