Tag Archives: Amazon

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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Foot traffic is declining and Black Friday can be much bigger than Cyber Monday in online sales

You have to wake up before it is too late. Black Friday is not what is used to be. Only a few years ago retailers were crowded with crazy people looking for a great deal. People still get great deals but some of them have already changed their behaviour.

According to Shoppertrak, foot traffic to U.S stores has fallen each year on Black Friday. We can clearly see a shift in the market, and reasons are many.

 

 

You can see it happening right in front of your eyes. Right now. Retailers are struggling and I have talked about if for years. Worst of all; this is just the beginning, and it is understandable. It is a natural thing.

Retailer chains said they will close about 7,000 stores and many of them are filing for bankruptcy. Many of them have too much debt and too many shops in the chain. On top of that we know that consumers wants to buy online.

Online retail activity are ten times bigger today than it was in 2004, and last year, on-line sales on Black Friday was around $2 billion, according to ComScore. Salesforce predicts Black Friday will be much bigger than Cyber Monday in online sales.

I take all the research on Black Friday as a pinch of salt, because retailers are destroying the day by starting the sale a week before the big day. Some call it Black Week, some call it Black Weekend and that will weaken the most important day Black Friday. That too makes the measure of the day a bit wrong. Black Friday is not only on Friday but sometimes for a whole week.

So, if you missed out on your shopping on Black Friday you still have the change to make a great deal on Cyber Monday.

The deals have already started and you can now buy for a discounted price at stores like Walmart, Amazon, Best Buy or Target. Cyber Monday is the online equivalent to Black Friday and the start is early on Monday November 27, 2017.

This is the day you can get deep discounts on Samsung, LG, Sharp, HP and Dell. You can also get a cheap PS4 slim and Xbox One S, Nintendo and iPhone X to name a few. It remains to see Cyber Monday exceeds Black Friday in on-line sales.

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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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S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%

Alibaba is a Chinese company I have been following since the first day they went public. It is also a company I have been trading with long before it went public, and shares have skyrocketed since then.

The Chinese giant is expected to report earnings on Thursday and investors must expect to see strong growth.

 

 

Alibabas growth will come in from online sales and cloud. According to Chinas National Bureau of Statistics, Alibaba`s retail sales growth jumped 41% YoY in June from 30% YoY in June. E-commerce penetration reached 18,6% in June this year.

The E-commerce giant is expected to benefit from improved spending trends in China. China Commerce is expected to grow 38% to $4,9 billion, and cloud computing & internet infrastructure is expected to grow a whopping 106,5% YoY to $369 million.

Just like Amazon, cloud computing is a growth engine for Alibaba, which is a $1 billion revenue run rate for the company. The company is improving thanks to its target marketing and bigger push on its mobile site.

S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%. Shares are up about 60% in just six months. That`s strong growth.

The FactSet consensus if for revenue of $7,1 billion, which is up from $4,6 billion in the year earlier period.

Alibaba is expected to report earnings on 08/17/2017 before market open. Get ready for higher earnings and strong growth.

 

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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New home sales came in strong in May and June and Home Depot will profit from it

Home Depot has been a great stock for many years and the shares has gone straight up since 2010. This tells us a lot about the market. It`s really good. Home Depot is a home improvement retailer. The company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services.

New home sales came in strong in May and June this year which means people have jobs, wages and money. Just ask Home Depot.

 

 

Many companies have problems to compete with Amazon but Home Depot seems to do it well in this environment. But no brick-and-mortar player can take it all during the online retail competition. Home Depot saw that in July when Amazon and Sears found each other.

The stock Home Depot got hit last month by the news of the partnership between Amazon and Sears. It didn`t take much time for the stock to snap back and the same can happen during the next quarterly event.

Home Depot is expected to report earnings on 08/15/2017 before market open. The report will be for the fiscal Quarter ending July 2017. Earnings forecast for the quarter is $2,21. The reported earnings per share for the same quarter last year was $1,97.

 

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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