Market Snapshot
briefing.com
| Dow | 35257.77 | +134.50 | (0.38%) | | Nasdaq | 13756.08 | +33.67 | (0.25%) | | SP 500 | 4479.37 | +10.39 | (0.23%) | | 10-yr Note | -31/32 | 4.08 |
|
| | NYSE | Adv 1242 | Dec 1581 | Vol 858 mln | | Nasdaq | Adv 2031 | Dec 2300 | Vol 5.3 bln |
Industry Watch
| Strong: Communication Services, Consumer Discretionary, Materials Financials, Energy |
| | Weak: Utilities, Real Estate, Industrials, Consumer Staples |
Moving the Market
-- Rebound action in the mega cap stocks
-- Digesting the July CPI report and weekly jobless claims, which both supported the soft landing narrative
-- Failure of S&P 500 to hold above 4,500
|
Closing Summary
10-Aug-23 16:25 ET
Dow +52.79 at 35176.06, Nasdaq +15.97 at 13738.38, S&P +1.12 at 4470.10
[BRIEFING.COM] The major indices started the session on a strong note, but closed the session flattish in another lightly traded affair. Solid buying interest right out of the gate was fueled by some buy-the-dip action and pleasing economic data that featured the July Consumer Price Index and weekly jobless claims.
Total CPI and core CPI, which excludes food and energy, were both up 0.2% month-over-month, as expected. Those changes left total CPI up 3.2% year-over-year, versus 3.0% in June, and core CPI up 4.7%, versus 4.8% in June. Granted total CPI was up from June but core inflation, which is what the Fed concentrates on, showed continued disinflation.
Initial jobless claims, meanwhile, showed some softening, rising to 248,000 (Briefing.com consensus 230,000) from 227,000 in the prior week. That is not a high initial claims reading, but directionality is important here relative to the policy outlook, so any move higher in initial claims is regarded by the market as a placating factor that will keep the Fed from jumping to a rate-hike conclusion.
The S&P 500, Nasdaq, and Dow Jones Industrial Average were up 1.3%, 1.6%, and 1.3%, respectively, at their morning highs. That move took the S&P 500 above the 4,500 level, which stood as resistance yesterday.
The initial positive momentum dissipated, though, as mega caps faded from their highs and the 10-yr note yield, which fell to 3.95% in response to this morning's economic data, climbed to 4.08% after a weak 30-yr bond auction. The S&P 500 ultimately moved back below 4,500 and closed near its lows for the day.
The Vanguard Mega-Cap Growth ETF (MGK), up 1.7% at its high, closed with a 0.3% gain. The Invesco S&P 500 Equal-Weight ETF (RSP), up 1.1% at its high, closed with a 0.1% loss. The market-cap weighted S&P 500 was flat at the close.
Market internals also weakened as the market declined. Advancers were outpacing decliners early on, but decliners had a better than 11-to-10 lead over advancers at both the NYSE and the Nasdaq by the close.
The S&P 500 sectors closed mixed, sporting either modest gains or losses. Communication services (+0.4%) led the pack, boosted in part by a gain in Walt Disney (DIS 91.76, +4.27, +4.9%) after it reported earnings. The utilities sector (-0.3%), meanwhile, brought up the rear.
Separately, there was an M&A deal today involving Capri Holdings (CPRI 53.90, +19.29, +55.7%), which is going to be acquired by Tapestry (TPR 34.67, -6.57, -15.9%) for $8.5 billion, or $57.00/share, in cash.
- Nasdaq Composite: +31.3% YTD
- S&P 500: +16.4% YTD
- S&P Midcap 400: +9.5% YTD
- Russell 2000: +9.2% YTD
- Dow Jones Industrial Average: +6.1% YTD
Reviewing today's economic data:
- Total CPI was up 0.2% month-over-month in July, as expected, and core-CPI, which excludes food and energy, was also up 0.2% month-over-month, as expected. On a year-over-year basis, total CPI was up 3.2%, versus 3.0% in June, and core CPI was up 4.7%, versus 4.8% in June.
- There were several key takeaways from the report: (1) there were no hawkish surprises as total and core CPI were spot-on with consensus estimates (2) the shelter index accounted for more than 90% of the increase in the all items index and (3) the all items index less shelter was up just 1.0% year-over-year on an unadjusted basis.
- Initial jobless claims for the week ending August 5 increased by 21,000 to 248,000 (Briefing.com consensus 230,000) while continuing jobless claims for the week ending July 29 decreased by 8,000 to 1.684 million.
- The key takeaway from the report is that, while initial claims are still running well below recession-like readings, they moved in a direction in the latest week to corroborate the thinking that there is some softening in the labor market, which is what the Fed expects to see (and hopes to see).
- The weekly EIA Natural Gas Inventories showed a build of 29 bcf versus a build of 14 bcf last week.
- The July Treasury Budget showed a deficit of $220.8 billion compared to a deficit of $211.1 bln in the same period a year ago. The deficit in July resulted from outlays ($496.9 billion) exceeding receipts ($276.2 billion). The Treasury Budget data is not seasonally adjusted so the July 2023 deficit cannot be compared to the June 2023 deficit.
- The key takeaway from the report is that the budget deficit continues to swell. It stands at $1.61 trillion fiscal year-to-date versus $1.375 trillion for all of fiscal 2022. Notably, net interest expenditures in July exceeded national defense spending.
The economic calendar on Friday will include:
- 8:30 ET: July PPI (Briefing.com consensus 0.2%; prior 0.1%) and Core PPI (Briefing.com consensus 0.2%; prior 0.1%)
- 10:00 ET: Preliminary August University of Michigan Consumer Sentiment survey (Briefing.com consensus 70.9; prior 71.6)
Treasuries settle lower after weak 30-yr bond offering
10-Aug-23 15:35 ET
Dow +51.23 at 35174.50, Nasdaq +14.05 at 13736.46, S&P +2.00 at 4470.98
[BRIEFING.COM] The major indices trading in a narrow range over the last half hour.
Treasuries settled with losses following a weak $23 billion 30-yr bond auction. The 2-yr note yield rose three basis points to 4.83% and the 10-yr note yield jumped seven basis points to 4.08%.
The economic calendar on Friday will include:
- 8:30 ET: July PPI (Briefing.com consensus 0.2%; prior 0.1%) and Core PPI (Briefing.com consensus 0.2%; prior 0.1%)
- 10:00 ET: Preliminary August University of Michigan Consumer Sentiment survey (Briefing.com consensus 70.9; prior 71.6)
Treasury yields climb
10-Aug-23 15:10 ET
Dow +134.50 at 35257.77, Nasdaq +33.67 at 13756.08, S&P +10.39 at 4479.37
[BRIEFING.COM] The three major indices have been trying to rebound somewhat while the Russell 2000 lags.
WTI crude oil futures fell 1.9% to $82.74/bbl and natural gas futures jumped 6.7% to $2.76/mmbtu. On a related note, the S&P 500 energy sector (+0.1%) is trading near the bottom of the lineup.
Treasury yields are climbing. The 2-yr note yield is up three basis points to 4.83% and the 10-yr note yield is up eight basis points to 4.09%.
Budget shortfall through July more than double last fiscal year
10-Aug-23 14:30 ET
Dow +131.40 at 35254.67, Nasdaq +31.28 at 13753.69, S&P +9.44 at 4478.42
[BRIEFING.COM] The major averages rallied off session lows following the release of the July Treasury Budget; to this point, the S&P 500 (+0.21%) remains in last place, albeit on gains of about 9 points.
The Treasury Budget for July showed a deficit of $220.8 bln versus a deficit of $211.1 bln a year ago. The Treasury Budget data is not seasonally adjusted, so the July deficit cannot be compared to the deficit of $227.8 bln for June.
Total receipts of $276.2 bln rose 2.5% compared to last year while total outlays of $496.9 bln increased about 3.4% compared to last year.
The total year-to-date budget deficit now stands at $1.61 trln vs $726.12 bln at this point a year ago.
Gold narrowly lower ahead of July treasury budget
10-Aug-23 13:55 ET
Dow +81.99 at 35205.26, Nasdaq +12.47 at 13734.88, S&P +3.74 at 4472.72
[BRIEFING.COM] With about two hours to go on Thursday the tech-heavy Nasdaq Composite (+0.09%) is in second place among the major averages.
Gold futures settled $1.70 lower (-0.1%) to $1,948.90/oz, this week's declines poised to extend month-to-date losses to about -2.55%.
Meanwhile, the U.S. Dollar Index is down about -0.1% to $102.38.
As a reminder, the Treasury Budget for July will be released in about 5 minutes at the top of the hour.
CPI and Initial Jobless claims data in a sweet spot
What will it be today? A buy-the-dip rebound effort that holds up or a buy-the-dip rebound effort that fails? Everybody will know the answer to that question at 4:00 p.m. ET, yet the indication ahead of the open is that there is going to be a rebound effort on the heels of yesterday's late sell-off.
Currently, the S&P 500 futures are up 28 points and are trading 0.6% above fair value, the Nasdaq 100 futures are up 133 points and are trading 0.9% above fair value, and the Dow Jones Industrial Average futures are up 195 points and are trading 0.6% above fair value.
The bulk of these gains were in place before the release of the Consumer Price Index and Weekly Initial Jobless Claims reports at 8:30 a.m. ET, reflecting a mechanical buy-the-dip trade that has persisted in the absence of any shocking fundamental news that defies the conventional soft landing, peak rate, trough earnings views that have been the fuel for this year's rebound effort.
Not surprisingly, the futures trade was supported by gains in the mega-cap stocks, which struggled in yesterday's action. Some positive price action in Dow component Walt Disney (DIS) following its earnings report, some M&A activity that featured Tapestry (TPR) acquiring Capri Holdings (CPRI) for $8.5 billion, or $57.00 per share, in cash, and optimism that the CPI data would support an on-hold Fed policy were added support factors.
That support didn't get pulled after the CPI and initial jobless claims data. Both were in the sweet spot of furthering the case that the Fed can stay on-hold at the September FOMC meeting.
Total CPI was up 0.2% month-over-month in July, as expected, and core-CPI, which excludes food and energy, was also up 0.2% month-over-month, as expected. On a year-over-year basis, total CPI was up 3.2%, versus 3.0% in June, and core CPI was up 4.7%, versus 4.8% in June.
There were several key takeaways from the report: (1) there were no hawkish surprises as total and core CPI were spot-on with consensus estimates (2) the shelter index accounted for more than 90% of the increase in the all items index and (3) the all items index less shelter was up just 1.0% year-over-year on an unadjusted basis.
There will be some calls that next month's report won't look as friendly given the jump in oil and gas prices, but for the time being, the July report offered enough validation for the Fed not to jump to any rate-hike conclusions.
The same can be said for the jobless claims report. Initial jobless claims for the week ending August 5 increased by 21,000 to 248,000 (Briefing.com consensus 230,000) while continuing jobless claims for the week ending July 29 decreased by 8,000 to 1.684 million.
The key takeaway from the report is that, while initial claims are still running well below recession-like readings, they moved in a direction in the latest week to corroborate the thinking that there is some softening in the labor market, which is what the Fed expects to see (and hopes to see).
There was some knee-jerk action in the Treasury market following the data. The initial response was positive, sending yields lower, and then the secondary response was to sell into the initial response. Overall, yields are little changed from where they were just ahead of the releases. The 2-yr note yield is down three basis points to 4.77% and the 10-yr note yield is down one basis point to 4.00%.
Notably, the probability of a 25-basis points rate hike at the September FOMC meeting, which was at a low 15% just before the releases, is at 9.5% now, according to the CME FedWatch Tool.
-- Patrick J. O'Hare, Briefing.com
Tapestry bags a huge acquisition with purchase of Capri Holdings, but plenty of risks involved (TPR)
Luxury handbag maker Tapestry (TPR), which owns the Coach and Kate Spade brands, did some serious shopping of its own today, acquiring Capri Holdings (CPRI) for $57/share in cash. Like the high-end handbags that TPR sells, the price tag for CPRI was no bargain, representing a 64% premium to yesterday's closing price. In total, TRP is paying $8.5 bln for CPRI and its well-known fashion brands of Michael Kors, Versace, and Jimmy Choo.
- There seems to be some sticker shock regarding that price as reflected in the negative reaction and steep selloff in TPR shares. On an adjusted EBITDA basis, the $8.5 bln valuation represents a seemingly reasonable multiple of 9x based on the past twelve months. However, when looking at CPRI's recent financial performance, the huge premium that TPR is paying becomes harder for investors to swallow.
- On May 31, CPRI reported Q4 results that edged past analysts' muted EPS and revenue estimates, but it guided Q1 EPS well below expectations while its revenue outlook also fell just short of projections.
- Discouragingly, each of CPRI's three brands saw revenue decline on a yr/yr basis as sluggish discretionary spending in the U.S. pressured sales across department stores.
- The disappointing earnings report followed an even uglier Q3 report in February in which CPRI badly missed earnings expectations and issued downside guidance for Q4 and FY24.
- Since that gloomy Q3 earnings report, shares of CPRI had tanked by nearly 50% and were hovering around multi-year low levels before this morning's buyout offer.
- Adding to the angst, TPR will be taking on more debt to finance the deal, while also adding CPRI's long-term debt balance of $3.6 bln to its balance sheet. In this high interest rate environment, the prospect of tacking on a lot more debt isn't particularly appealing, especially given the uneasiness regarding the economy.
- TPR did state that its priority moving forward will be debt reduction, targeting a leverage ratio of below 2.5x debt/EBITDA within 24 months of closing, but it will suspend its share repurchase activity to do so.
- That's a concern because TPR has been very active with its share repurchases, spending $500 mln to repurchase 13.1 mln shares of common stock during the first nine months of FY23.
- From TPR's perspective, the addition of CPRI will turn the company into a handbag powerhouse, while making it more competitive in an EMEA market that's currently dominated by Gucci parent Kering and Tiffany owner LVMH.
- The key to this deal, though, may be China where TPR derives about 15% of its revenue compared to roughly 5% for CPRI. Unlike CPRI, TPR has been posting solid results this year, mainly due to its higher exposure to China and the stronger-than-expected recovery in sales there after the PRC government lifted its COVID-19 restrictions.
- With an established retail and distribution channel in place in China, TPR can leverage its position there to drive higher sales for CPRI.
Overall, we can appreciate the rationale for making this blockbuster deal as it expands TPR's global reach and adds more than $12 bln in annual sales. However, even though the transaction is expected to be immediately accretive, market participants can be forgiven for feeling apprehensive about the lofty price tag, the significant increase in debt, and the risks involved with integrating a major acquisition amid an uncertain macroeconomic environment.
US Foods' light unit case growth takes a bite out of revs in Q2, triggering selling pressure (USFD)
Nationwide food distributor, US Foods (USFD -2%), whose primary rivals include Sysco (SYY) and Performance Food Group (PFGC), continues to track lower today after falling short of analysts' sales forecasts in Q2. USFD delivered muted sales growth of 2.1% yr/yr to $9.01 bln. Still, the company did squeak out a bottom-line beat and raised the low-end of its FY23 adjusted EPS outlook by $0.10, reflecting a solid first half of the year, helping provide a slight bounce off of intraday lows of nearly -6%.
- Why did USFD miss top-line estimates? Total case volume slowed in Q2 to +2.7% from +5.7% in Q1 primarily due to systems conversion at CHEF'STORE (restaurant equipment and supplies warehouse), which clipped 70 bps off case growth, and less favorable comparisons versus Q1, which was lapping the adverse effects of Omicron.
- The good news is that most of the systems conversion at CHEF'STORE is behind USFD, so adverse impacts should not bleed significantly into Q3. Furthermore, independent restaurants' case growth was a healthy 5%, with some verticals, including healthcare and hospitality seeing 7% growth.
- Another positive development from the quarter was modest yr/yr product cost deflationary trends coinciding with steady prices in grocery categories, helping lift USFD's margins. The company's cost initiatives also contributed to adjusted EBTIDA margin expansion of 60 bps yr/yr. As a result, USFD delivered EPS of $0.79, an 18% improvement yr/yr and sufficient for a modest beat.
- Looking ahead, USFD hiked the low end of its FY23 adjusted EPS projection to $2.55-2.65 from $2.45-2.65, citing strong first-half performance and continuing momentum. Although the raised guidance is commendable, it translates to just a $0.05 bump at the midpoint from its prior target. With shares up over +20% on the year as of yesterday's close, the minor boost to FY23 earnings guidance is not overly exciting.
USFD's Q2 report was somewhat dull, even if it did contain a few more positives than SYY's JunQ report last week, which included underwhelming FY24 (Jun) earnings guidance. Still, on the whole, case volumes resembled what we saw from SYY. Also, although management felt "very good" about what it saw in July, USFD's updated FY23 outlook does not underpin much improvement in case growth in the back half of the year, a troubling sign that showcases the potentially adverse effects of sticky inflation.
Finally, with USFD and SYY already reporting JunQ results, PFGC is up against a lower bar when it releases JunQ numbers on August 16.
Disney's Q3 results far from magical, but brighter profitability prospects for DTC is pleasing (DIS)
As Walt Disney's (DIS) CEO Bob Iger likes to say, the company's progress in transforming its business and improving the profitability of its Direct-to-Consumer (DTC) segment isn't going to be linear. That assertion was applicable to last night's mixed Q3 earnings report which reflected a company that's still in flux following a major reorganization and an ongoing shift towards a streaming model.
Finding the right balance between growth and profitability for the DTC segment has proven to be more challenging than anticipated for DIS.
- During former CEO Bob Chapek's tenure, the priority rested on driving subscriber growth as high as possible for Disney+. In that regard, Mr. Chapek achieved wild success as Disney+ worldwide subscribers soared to over 164 mln in 4Q22 -- his last quarter as CEO before being replaced by Bob Iger.
- However, to reach that huge subscriber number so quickly, DIS kept Disney+ prices low and spent generously on content. Consequently, the operating losses piled up for Disney+, turning the DTC segment into a highly unprofitable business that weighed on DIS's overall bottom-line. In that same 4Q22 period, DTC's operating loss ballooned to by $800 mln yr/yr to $1.5 bln, and DIS's EPS fell by 19% yr/yr.
Enter Bob Iger. With his return as CEO in November 2022, the pendulum began swinging quickly in the other direction.
- Less than one month after he took the helm, DIS announced the first ever price increase for Disney+. A couple months later, DIS announced a major restructuring plan that included a workforce reduction of 7,000 jobs with the company targeting $5.5 bln in cost savings. Meanwhile, content spending for FY23 was pegged at $30 bln, essentially flat on a yr/yr basis.
- The impact from these actions has been dramatic with DTC's operating loss in 3Q23 decreasing by $600 mln yr/yr to $500 mln. During the earnings call, Mr. Iger reiterated that DTC is on track to achieve profitability by the end of FY24.
- Helping the cause will be another round of price increases for the streaming services, including a 20%+ jump for the ad-free versions of Disney+ and Hulu, which will take effect in October.
- Furthermore, DIS cut its FY23 content spending forecast to $27 bln, providing another profitability boost.
- To attain profitability for DTC, Iger and company have been willing to sacrifice subscriber growth for Disney+. Following last quarter's 4.0 mln decrease in subscribers, domestic Disney+ subscribers fell by 1% in Q3 to 46.0 mln.
- This slowdown in growth didn't go over well with investors last quarter but DIS predicted last night that Disney+ Core subscriptions will see a rebound in Q4, providing some hope that the company is finding a sweet spot between growth and profits.
Also lending support to the stock today is the rising probability that DIS will sell or spin-off its struggling Linear Networks segment.
- Mr. Iger reiterated last night that DIS is considering strategic options for the unit, which experienced another sharp drop in operating income at -23% to $1.9 bln as cord-cutting continues to weigh.
- Importantly, DIS is only interested in parting ways with ABC, FX, and National Geographic, while it seeks partners to help bring its ESPN network to a streaming-based platform.
The main takeaway is that optimism over these streamlining plans, and DTC's improving profitability outlook, is taking the sting out of some DIS's shortcomings in its Q3 report. That includes the fact that DIS is expecting a slowdown at its domestic theme parks for the remainder of the year as the burn off of pent-up demand persists.
The Trade Desk heads lower following earnings; upside was not as robust as Q1 (TTD)
The Trade Desk (TTD -4%) is trading lower following its Q2 report last night. This operator of a cloud-based online advertising-buying platform has been performing well despite the industry facing difficult macro headwinds. As such, we had concerns heading into this report. Advertisers tend to pull back when there are macro headwinds. Also, the stock was up +90% YTD. However, the company performed well.
- TTD reported better-than-expected numbers for both EPS and revenue but the upside was much smaller than in Q1. Adjusted EBITDA rose 29% yr/yr to $180 mln, well above the $160 mln prior guidance. TTD also guided to upside Q3 revs at $485+ mln and it guided to a healthy sequential increase for adjusted EBITDA in Q3 at approx $185 mln.
- TTD noted that visibility and advertiser sentiment continued to improve throughout the quarter, and TTD continued to gain share. The company is benefitting from the shift of ad budgets to connected TV (CTV) and the increasing use of retail data.
- During Q2, growth was broad-based across channels, verticals and regions. CTV again led TTD's growth from a scale channel perspective. TTD saw strong momentum again in retail media, as it launched integrations with more retailers and won incremental shopper marketing budgets. By channel, Video, which includes CTV, represented a mid-40s percentage share of revenue and continues to grow as a percentage of overall mix. Mobile was in mid-30s while Display continues to represent a low-double digit share and Audio was around 5%.
- The company said that, even though certain macro indicators are improving, there's still a sense from many advertisers that we are in an unpredictable environment. Advertisers have become more deliberate with their spend, but they have increasingly gravitated to TTD's platform because marketers have learned that data-driven precision can bring a sense of certainty to their advertising efforts. That has helped TTD significantly outperform the digital advertising industry over the past few quarters.
- International spend accelerated in Q2 following a strong Q1 with notably strong performance in CTV. TTD is also excited about its June 2023 launch of Kokai, which should benefit as advertiser sentiment improves in 2H23 and in 2024.
Overall, this was a decent report from TTD, especially considering the uncertain macro environment. It was not the blowout we saw in Q1, but still pretty good, especially in light of recent weak reports from online ad-dependent companies like Pinterest (PINS) and Snap (SNAP). Also, ad agencies OMC and IPG both had bad quarters, so that made us nervous. TTD's quarter and guidance look particularly good in light of advertising peer Magnite (MGNI) selling off today following downside guidance.
Alibaba returns to double-digit sales growth in JunQ, potentially marking a turning point (BABA)
Alibaba's (BABA +5%) Q1 (Jun) earnings and sales beat checks out, garnering decent buying interest from investors today. The Chinese cloud and e-commerce giant, which owns several brands, including Taobao, Tmall, and AliExpress, may not have returned to pandemic form when sales were consistently above +30%.
However, Alibaba finally registered double-digit top-line growth for the first time since 2Q21 (Sep), highlighting a long-awaited rebound after several obstacles stymied growth, including a rampant crackdown by the Chinese government over anti-competitive practices, the withdrawal of Ant Group's proposed IPO, a general normalization of cloud demand after pandemic measures were lifted, and stalled economic recovery efforts this year.
- Revenue climbed 13.9% yr/yr to RMB 234.16 bln, exceeding analysts' forecasts of high-single-digit growth, helping drive EPS of RMB 17.37, a 48.1% expansion from the year-ago period.
- Alibaba's core Taobao and Tmall apps' average daily active users (DAUs) grew by at least 6% each month during Q1, with positive momentum in July, as DAUs jumped over 7%. On the seller side, the daily average number of merchants purchasing advertising increased by over 20% yr/yr in Q1, partly fueled by Alibaba's AI tools for store openings, product launches, and marketing campaigns. As a result, Taobao and Tmall Group registered a 10% improvement in CMR or Customer Management Revenue, the biggest chunk of Alibaba's overall sales.
- Alibaba International Commerce Group (AIDC), which includes AliExpress, outpaced total sales growth, surging by 31% yr/yr, with the retail side achieving 25% growth. Management remarked that it is starting to see economies of scale in its international retail business through its past efforts to enhance monetization and operating efficiency. As a result, adjusted EBITDA losses slowed by 17% yr/yr.
- Alibaba Cloud remained the laggard in Q1, growing sales by just 4% yr/yr as the normalization of demand since the pandemic continued to weigh, as did the lingering effects from one of Alibaba's top customers phasing out their cloud service (a dynamic touched on last quarter). Still, Alibaba was excited over the enormous potential of AI, stating that the technology is the beginning of a new era.
- Other businesses, including Local Services Group, Cainiao Smart Logistics Network Limited, and Digital Media and Entertainment Group, which combined totals just under a fifth of total sales, saw solid top-line growth, growing 30%, 34%, and 36% yr/yr, respectively.
- Management briefly discussed the company's significant restructuring plans, splitting its six business groups into separate entities. CEO Daniel Zhang mentioned that each group has already started operating under their respective boards' leadership.
Like we saw from other e-commerce leaders in their respective markets, including Amazon (AMZN), MercadoLibre (MELI), and Coupang (CPNG), as consumers hunt for the best value, e-commerce becomes top-of-mind. Alibaba's platforms were no exception, with its e-commerce groups pushing total sales growth into double-digit territory for the first time in nearly two years. There are still plenty of concerns surrounding Alibaba, particularly given past regulatory issues. However, its Q1 report may finally mark a turning point.
|
