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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.
The e-commerce giant's entry into the industrial-supply market appears to have curtailed margin at traditional companies -- which is bad news for the industry's valuation.
Difficult year: Amazon’s founder, Jeff Bezos, with his former wife MacKenzie in 2017. Photograph: Danny Moloshok/ReutersThe march of Amazon and other US tech giants to world domination can sometimes seem unstoppable. Investors who have bought into the Amazon story have rarely been let down either. Amazon’s share price performance since the millennium stands at +2,345%.Last year tech stocks were in overdrive until the autumn, when almost all took a big tumble. But Amazon is still up more than 25% on this time a year ago, and a reading of 90 on its price to earnings ratio – essentially a measure of investors’ hopes for the future – suggests that its stellar growth is expected to continue.But, as always, investors will be on the lookout for signs the sheen might be rubbing off when the company reports its results for the first three months of the year on Wednesday, after it acknowledged it had come up against some bumps in the road.Jeff Bezos, Amazon’s founder, has certainly had a tricky time of late, going through the world’s largest divorce. The world’s richest man has also had to contend with alleged interference in his private life by the Saudi state, as well as the bitter public campaign against Amazon’s plans to open a new major office in New York.On the corporate front, the Amazon machine recorded a third consecutive record quarterly profit at the end of 2018 – a cool $3bn. However, even as it unveiled the new record, it signalled that the strong finish to the year may not be repeated in the first quarter, amid further heavy investment in an array of big strategic bets, from drone delivery systems to cloud computing.Amazon has also come up against problems outside its home markets: it will shut its Chinese online store by 18 July, basically admitting that the grip of entrenched local platforms Alibaba and JD.com was just too strong. (Hard-pressed retailers in Amazon’s main markets are unlikely to feel particularly sympathetic.) The firm has also been dented by regulatory action in India, another big source of potential new customers.Amazon’s search for more growth is mirrored across the big US tech firms reporting earnings this week, as penetration in its home market starts to plateau.For Twitter – finally profitable last year, 12 years after it was founded – the number of daily active users is the key piece of data, because the more user engagement, the more potential revenues, even if top-line growth in the number of tweeters slows.> 2018 was a really tricky year for social media and internet companies> > Alex de Groote, analystWhen growth prospects stutter, the results can be brutal. Snap, which reports its first-quarter results on Tuesday, is just such a cautionary tale. The social media company behind the Snapchat photo messaging app is now worth just half of its value when it floated, to a rapturous reception, two years ago. Now analysts fear its US user base will shrink in 2019, and losses are expected to continue for the next two years at least. Recently floated social media company Pinterest, beware.Of course, the big tech firms have proven naysayers wrong before. Facebook had a particularly grim 2018, after the Cambridge Analytica scandal and other, increasingly regular, data and political furores. Nevertheless, it is expected to report a big jump in quarterly revenue, with analysts expecting an increase of about 25% year-on-year to just shy of $15bn.Analyst Alex de Groote believes the tech companies will ride out their troubles, with investors believing they can continue their inexorable expansion. He said: “2018 was a really tricky year for social media and internet companies. However, 2019 has been a total turnaround.”
The EU’s top privacy official has urged Donald Trump’s administration to adopt an equivalent to Europe’s tough new privacy law as a precursor to broader talks between Brussels and Washington on the transatlantic sharing of data by big business. — would make the US “perfect partners” for a data flow agreement that would allow American and European businesses to freely share the personal information of its citizens. The EU only has a handful of these types of “adequacy” agreements, where third countries are treated as having the same robust legal privacy protections that the EU grants its citizens.
The two media moguls arrange for Expedia to buy its controlling investor, Liberty Expedia in a bid to clean up a complicated ownership structure.
On Thursday, (AMZN) (AMZN) and Alphabet-owned (GOOGL) Google said that the companies were preparing to end a software standoff, such that the YouTube app will soon be available on Amazon’s Fire devices and Prime Video will be available on Google’s Chromecast and Android devices. It also means “customers will have even more ways to stream what they want, whenever they want, no matter where they are,” according to an Amazon executive. As observed by USA Today and others, it doesn’t mean you can use video-enabled Echo devices to watch YouTube, nor does it mean Google’s Home speaker is now for sale on Amazon.
Amazon (AMZN) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
April 19 (Reuters) - Zhejiang Juli Culture Development Co Ltd: * SAYS COURT TO AUCTION SHAREHOLDER'S 50 MILLION SHARES ON ALIBABA'S PLATFORM WITH BIDDING PRICE STARTING AT 112.01 MILLION YUAN ($16.71 million) ...
What’s Ahead for Hulu after AT&T Stake Sale?(Continued from Prior Part)Hulu’s ownership Hulu has been changing hands amid rising consolidation in the media industry due to cord-cutting and the growing popularity of online video streaming
BEIJING (AP) — Chinese e-commerce tycoon Jack Ma has long been an example of how the power of big dreams, strong leadership and sheer elbow grease can create massive fortunes in China's go-go economy.
Chinese e-commerce tycoon Jack Ma has long been an example of how the power of big dreams, strong leadership and sheer elbow grease can create massive fortunes in China's go-go economy. Ma is one of China's richest men and his comments brought both condemnation and support as China's maturing economy enters a period of slower growth — and young people look to escape the drudgery their parents often had to endure. The debate has exposed contradictions in modern Chinese society, where the Communist Party was officially founded on improving conditions for workers and peasants but also calls for huge sacrifices to build a powerful and prosperous nation.
Hey, good morning! You look fabulous. Add The Weather Channel to the list of ransomware victims, and we have some news about the Google vs. Amazon tiff. Also, the Child's Play remake will have Chucky terrorizing people via their smart-home devices. Welcome to 2019.
American Media Inc (AMI) said on Thursday it was selling its National Enquirer tabloid to James Cohen, whose family owns a magazine distributor and used to own the Hudson chain of airport newsstands. The National Enquirer had admitted to paying hush money to help U.S. President Donald Trump get elected and been accused of attempting to blackmail Amazon founder Jeff Bezos.
Amazon and Google announced Thursday they had agreed to allow each other's streaming media applications to work on their platforms, ending a spat over video between the tech giants. The companies said in a statement that the official YouTube apps will be available on Amazon's Fire TV in the coming months, allowing users of the Amazon platform to access the music videos, movies, shows and other content from the Google-owned service. The agreement also enables Amazon Prime members streaming to Chromecast or using Android TV devices to access Amazon's video content.
NEW YORK (AP) — Amazon and Walmart on Thursday kicked off a two-year government pilot program allowing low-income shoppers on government food assistance in New York to shop and pay for their groceries online for the first time.
Rumors started circulating last week that Amazon was exploring a free, ad-supported tier of its streaming music service. Turns out there was something to those rumblings. Today, the commerce giant announced that Alexa device owners in the US will be able to listen to top playlists and stations on Amazon Music at no additional charge, even if they are not Amazon Prime subscribers. Of course, this news also comes on the same day that Amazon's frenemies over at Google launched ad-supported free YouTube Music streaming on Google Home smart devices.