Thu, Aug. 11, 9:15 AM
Thu, Aug. 11, 7:26 AM
- Revenue of $4.838B rose 59% Y/Y, with China retail marketplaces revenue of $3.518B up 49%. Mobile revenue of China retail marketplaces of $2.635B gained 119%, and represented 75% of total China retail marketplaces revenue.
- Core commerce EBITDA of $2.501B up 38% Y/Y.
- Mobile MAUs in June of 427M vs. 410M three months earlier.
- GMV on China retail marketplaces of $126B up 24% Y/Y, with mobile GMV making of that (was 55% a year ago)
- Cloud computing revenue of $187M up 156% Y/Y. Adjusted EBITDA loss of $24M about halved from a year ago.
- $2B of stock bought back by company, and another $400M by partners in a deal with SoftBank.
- Conference call starts at 7:30 ET.
- Previously: Alibaba beats by $0.11, beats on revenue (Aug. 11)
- BABA +4.7% premarket
Thu, Aug. 11, 6:57 AM
Mon, Aug. 8, 8:10 AM| Mon, Aug. 8, 8:10 AM | 15 Comments
Fri, Jul. 22, 12:44 PM
- Leaks that Verizon (VZ +1%) continues to be the front-runner to close a deal for core Yahoo (YHOO +1%) have the telecom spending about $5B on the deal, vs. an earlier $3.75B-$4B.
- While earlier Verizon interest excluded Yahoo's patent portfolio and real estate, the current talks do reportedly include the real estate.
- Yahoo had set aside about 3,000 patents into a subsidiary called Excalibur for separate auction by Black Stone IP, though other bidders like AT&T (T +1.5%) or a group with Quicken Loans' Dan Gilbert (still reportedly talking with Yahoo) or an aggressive TPG might yet want to buy the IP along with core assets.
- The deal would be a "great outcome," Piper Jaffray analyst Gene Munster says, with time of the essence since "the real value here is unlocking Yahoo Japan and Alibaba (BABA +0.1%) in a cash-free transaction. And they really need to get that done before the election."
- The $5B figure is still a bit low, Munster says, as he expects the deal to be around $6B. "If you look at the tax benefit for Yahoo Japan and Alibaba, that's about a $10B or $11B tax benefit, so a billion dollars here and there doesn't make much difference; there's still upside to Yahoo shares."
Thu, Jun. 9, 5:36 PM
Wed, Jun. 1, 8:10 PM
- Alibaba (NYSE:BABA) disclosed terms of its buyback from SoftBank (OTCPK:SFTBY +1.5%), part of the latter company's $7.9B (at minimum) divestment of holdings in the Chinese retail conglomerate.
- It's agreeing to buy just over 27M shares at $74/share, for an aggregate of $2B worth. Members of the Alibaba partnership are buying just over 5.405M shares at the same price, for an aggregate of $400M worth.
- Alibaba closed down 6.5% today, to $76.71 (just 3.7% over the buyback price) in the wake of the news that SoftBank was unloading the sizable stake to raise capital.
- SoftBank also agreed to separate private placements of Alibaba shares amounting to $500M to Gamlight (part of GIC Private Limited) and $500M to Aranda Investments, part of Temasek. Those are at the same $74 share price.
- Previously: Goldman reiterates Buy on SoftBank after surprising Alibaba stake sale news (Jun. 01 2016)
Wed, Jun. 1, 10:31 AM
- Alibaba (NYSE:BABA) is 2.7% lower in U.S. trading, and SoftBank (OTCPK:SFTBY) up 1.7%, the morning after the Japanese company said it would sell at least $7.9B worth of the Chinese retail conglomerate -- a move that surprised Goldman Sachs.
- The impact of such a sale on Alibaba is minimized somewhat by the way it's put together, says SunTrust's Bob Peck. Some $2B in sales are of shares back to Alibaba (and another $400M to members of the Alibaba Partnership), while a newly created trust is offering $5B in securities exchangeable into Alibaba ADS.
- Goldman's Ikuo Matsuhashi says the news came as a surprise, as many hadn't expected SoftBank to “move so quickly in terms of selling a stake in Alibaba given many market observers still believe that the latter has upside."
- Matsuhashi is maintaining a Buy rating on SoftBank and a target price of ¥7,800, 24.8% upside from its current Tokyo price of ¥6,252.
- As for Sprint (S -0.1%), Matsuhashi says the move isn't indicative of a change in circumstances there, since SoftBank management has already (and recently) expressed confidence that the U.S. telecom's earnings would improve.
Tue, May 31, 5:08 PM
- SoftBank (OTCPK:SFTBY) says it will sell at least $7.9B worth of its stake in Alibaba (NYSE:BABA) as part of a series of capital-raising transactions.
- Alibaba shares are 2% lower in after-hours trading on the NYSE.
- Specifically, SoftBank says, it will sell $2B in ordinary shares back to Alibaba; sell $400M worth to members of the Alibaba Partnership and $500M to a "major sovereign wealth fund"; and use a newly formed trust to offer $5B of mandatory exchangeable trust securities, exchangeable into ADS of Alibaba, to qualified institutional buyers in private placement.
- SoftBank will increase its liquidity cushion with the moves, it says.
- Afterward, it expects to continue to hold about 28% of outstanding Alibaba shares.
Wed, May 25, 8:37 AM
- The SEC is looking into the company's consolidation practices, related-party transactions, and data reported from the Singles' Day promotion (which brought in nearly $14B of sales in a 24-hour period last year), according to a disclosure in the annual report.
- Alibaba (NYSE:BABA) says it's providing documents and cooperating.
- Shares -2.8% premarket
Fri, May 13, 3:50 PM
- Amid objections from other members, an anti-counterfeiting group is suspending the membership of Alibaba (BABA -2.6%), long criticized as a leading marketplace for fake items.
- The International Anti-Counterfeiting Coalition says it failed to inform the board about conflicts of interest around the coalition's president Robert Barchiesi -- who owns stock in Alibaba and had close ties to one of the company's executives, who had hired Barchiesi's son while at Apple.
- So it will suspend the new class of membership that allowed Alibaba to join, as well as a couple of other members.
- Companies including Gucci, Michael Kors and Tiffany have quit the coalition recently while objecting loudly over Alibaba's inclusion in the group.
- Now read The Gaps In Chanos' Short Position In Alibaba »
Thu, May 5, 1:25 PM
- Though Yahoo's (YHOO +2.4%) efforts to sell its core business get far more ink, Alibaba's (BABA +3.7%) movements continue having a bigger impact on its shares. The web portal is trading near $37 today after Alibaba posted mixed FQ4 results - EPS missed due to large investments in areas such as local services and entertainment content, but revenue beat as annual sales growth accelerated to 39% from FQ3's 32%.
- Driving the acceleration: Alibaba's Chinese retail marketplace (Taobao/Tmall) revenue rose 41% Y/Y to $2.84B, an improvement from FQ3's 35% growth. Marketplace GMV rose 24% to $115B, and Alibaba's monetization rate on these sales improved to 2.47% from 2.17%. International commerce revenue rose 21% to $308M, and cloud computing/Internet infrastructure revenue 175% to $165M.
- Aggressive spending led Alibaba's costs/expenses to rise to 60% of revenue from 58% a year ago. Cost of revenue rose to 35% of revenue from 29%; R&D, sales/marketing, and G&A were either flat or down as a % of revenue. $118M in losses were recorded for Alibaba's share of its Koubei local services JV with Alipay parent Ant Financial. Alibaba ended FQ4 with $17.3B in cash and $9B in debt.
- Yahoo's 384M-share Alibaba stake is currently worth $30.2B.
Thu, May 5, 9:12 AM
- Gainers: SYNC +143%. LGCY +31%. AAWW +27%. EPE +21%. FCEL +19%. WTW +15%. DNR +14%. ZNGA +14%. CHK +13%. BCEI +12%. UNXL +12%. ARRS +10%. CRC +10%. CLMT +9%. ORIG +9%. QRVO +8%. GSV +8%. HMY +8%. VNR +7%. MEET +7%. SDRL 7%. CLR 6%. SGYP 6%. OAS 5%. REGN 5%. BABA 5%. AUY 5%.
- Losers: PTX -37%. FRSH -27%. SQNM -19%. FIT -13%. EBIO -11%. LB -10%. WFT -9%. SEAS -8%. ABC -8%. CTL -5%.
Thu, May 5, 7:24 AM
- FQ4 non-GAAP net income of ¥7.635B or ¥3.02 per share vs. ¥7.741B and ¥3.00 one year ago. In dollar terms, EPS of $0.47 up 1% Y/Y on revenue of $3.751B up 39%.
- China retail marketplaces revenue of $2.844B up 41% Y/Y; U.S. of $2.029B up 149%.
- GMV in China of $115B up 24% Y/Y, with mobile accounting for 73% of that (vs. 51% a year ago). Mobile MAUs of 410M up 42% Y/Y.
- Cloud computing operation grows 175% to $165M.
- Non-GAAP FCF of $681M for quarter, $7.953B for fiscal 2016.
- 5.8M shares repurchased during quarter for $365M.
- Conference call at 7:30 ET
- Previously: Alibaba misses by $0.58, beats on revenue (May 5)
- BABA +4.6% premarket
Wed, Apr. 20, 10:59 AM
- With Yahoo's (YHOO +3%) first-round bid shortlist out, where was Daily Mail & General Trust (OTCPK:DMTGY)? The operators of the world's most-visited English-language website were a prominent late arrival to the Yahoo bidding scene, but took a back seat (joined by IAC, Comcast and Time Inc.) to Verizon, YP, Rakuten and private equity.
- Daily Mail now says it didn't put a bid in with Yahoo by Monday's deadline, but it is in talks with parties interested in Yahoo. The publisher is up 0.6% in London.
- Yahoo's process may become a full-fledged saga for 2016. Not only is the existing sale process quite likely to run into June, but secondary interest in the resulting asset mix from the likes of Alibaba (BABA +0.7%), SoftBank (OTCPK:SFTBY -0.1%) and Daily Mail could mean even more transfers of businesses ahead.
- Alibaba had a strong (if less dramatic) case to become a dark horse, since it may have been able to pull off the functional equivalent of a highly tax-advantaged buyback.
- Now read Yahoo: Who's Ready To Take On A Legacy Digital-Native Media Turnaround? »
Tue, Apr. 5, 4:25 PM
- The buyout of Youku Tudou (NYSE:YOKU) by Alibaba (BABA -2.2%) is complete, the company says, following last month's shareholder approval.
- The deal, about $4.2B, was completed through a merger with Alibaba merger subsdiary Ali YK Subsidiary Holding Limited. Barring excluded shares, shareholders received the equivalent of $27.60 per ADS in merger consideration.
- The company has requested that trading ADS on the NYSE be suspended.
- Now read Alibaba Group: The Most Attractive Growth Stock In 2016 »
Alibaba Group Holding Ltd. operates as an online and mobile commerce company. It provides online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services. The company's major businesses include Taobao Marketplace, which is a China's online shopping... More
Industry: Specialty Retail, Other