BABA Oct 2024 130.000 call
- Yahoo Finance Video
Alibaba is in the eye of a geopolitical storm: Analyst
Shares of Alibaba (BABA) are slipping after the company posted an 86% loss in its fourth quarter profits year-over-year. CFRA Research Senior Equity Analyst Angelo Zino joins Market Domination Overtime to discuss Alibaba's earnings and what it may signal about the state of the consumer. Alibaba saw weaknesses in its e-commerce and cloud businesses, which make up more than 50% of its revenue, Zino says. He adds that slow e-commerce growth is "disappointing," while the hit to the cloud business is concerning as it "is a critical part of the valuation story." "There are clearly geopolitical pressures out there," he adds, saying that Alibaba is "absolutely in the eye of the storm." He points to the company's inability to access advanced chips, which will delay efforts to create large language models that could drive revenue as its US counterparts march ahead. Zino says Alibaba's weak earnings demonstrate "that the consumer is trading down." While the company is seeing improvement from Chinese consumers, Zino is unsure whether that momentum will be sustainable through the end of the year. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
- Yahoo Finance Video
New tariffs on China, meme rally, Walmart layoffs: Morning Brief
In today's edition of The Morning Brief, Hosts Seana Smith and Brad Smith break down current market trends and what you need to know for the trading day ahead. Stocks (^DJI, ^IXIC, ^GSPC) opened relatively flat on Tuesday morning following hotter-than-expected Producer Price Index (PPI) inflation data for April. Jefferies Senior US Economist Thomas Simons joins the show to break down the PPI print and what it signals for the Federal Reserve, believing there is a chance interest rate cuts may not happen this year at all. Meanwhile, President Biden is set to unveil a new wave of tariffs on Chinese imports, including electric vehicles, semiconductors, and precious minerals. Yahoo Finance's Jennifer Schonberger analyzes the sectors most likely to be impacted. Meme stocks like GameStop (GME) continue to soar in a second-day rally following the online return of user "Roaring Kitty" on X (formerly Twitter), who was largely responsible for the 2021 GameStop short squeeze. However, the retail sector is under pressure, as Walmart (WMT) is reportedly preparing to lay off hundreds of corporate workers and Home Depot (HD) posted first-quarter earnings that fell below Wall Street estimates, signaling a pullback on consumer spending. Shares of Alibaba (BABA) also sunk after the company posted an 86% loss in profit year-over-year. Tesla (TSLA) is backpedaling its recent decision to lay off most of its Supercharger team, as Bloomberg reports the electric vehicle giant is preparing to rehire some of them. Alphabet (GOOG, GOOGL) is expected to unveil new artificial intelligence initiatives in its Google I/O developer conference today. This post was written by Melanie Riehl
- Bloomberg
Tencent Builds on Recovery as Alibaba Falters Again
Tencent Holdings Ltd.'s revenue and earnings beat estimates while rival Alibaba Group Holding Ltd.'s profit plunged. Bloomberg Intelligence's Catherine Lim shares her take on the results of the two Chinese internet giants on Bloomberg Television.
