Tue, Nov. 15, 9:03 AM
- Retail sales topped expectations in October off of broad strength across key categories. On a year-over-year comparison, retail sales were up 4.3% during the month as hiring and wage growth clearly overshadowed election fatigue.
- Building material and garden equipment sales increased 1.1% M/M and 6.5% Y/Y. That strength was tipped off a bit earlier when Home Depot (NYSE:HD) reported.
- Sales at health and personal care stores were up 0.8% M/M and 8.3% Y/Y. Not a bad read for Ultra Beauty (NASDAQ:ULTA) and e.l.f. Beauty (NYSE:ELF).
- The miscellaneous store retailers and nonstore retailers categories both showed a sizzling double-digit Y/Y pace of sales. Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) are included in the latter group of online sellers.
- "The consumer is in good shape," says Barclays chief U.S. economist Michael Gapen after digesting the data.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Fri, Oct. 28, 11:44 AM
- PayPal (NASDAQ:PYPL) is not Visa (or MasterCard), says SA contributor Bulls & Beards in a PRO article embargoed from general release until tomorrow morning.
- Any check of the numbers shows 75% of PayPal's EBITDA is derived from its relationship with eBay (NASDAQ:EBAY) and its subprime credit book, says the author, who believes eBay intends to renegotiate or terminate its operating agreement at expiration.
- Bulls & Beards' price target of $12.50 suggests 70% downside.
Thu, Oct. 27, 9:47 AM
- There's some mind-blowing numbers out on e-commerce as part of the 2016 Adobe holiday season forecast.
- E-commerce sales are expected to increase 11% this year to $91.6B. Though the pace is slower than what was seen in some recent years, it still triples the overall growth rate in retail.
- Cyber Monday is set to be the largest online shopping day of all time, with $3.36B in sales anticipated.
- Large retailers are seen outpacing smaller retailers by a wide margin, 17% growth vs. 7% growth. That means more market share for Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Best (NYSE:BBY) and Staples (NASDAQ:SPLS) in comparison to chains which already have a harder time leveraging their shipping costs.
- Adobe says hot gifts this year will include virtual reality devices, Pokemon, Barbie, Lego, Hot Wheels and Frozen toys.
- A stretching out of the holiday season from early October until past Christmas could help FedEx (NYSE:FDX) and UPS (NYSE:UPS) manage the logistics more efficiently.
- Related stocks: SNE, HAS, MAT, NILE, EBAY, DIS.
- Related ETFs: IBUY, XRT.
- Full Adobe report
Sat, Oct. 22, 10:57 AM
- Susquehanna calls the share price drop in eBay (NASDAQ:EBAY) a buying opportunity.
- The investment firm cites the company's "solid" free cash flow and "strong" capital returns.
- Asset monetizations (Mercado Libre) and rising growth rates could drive eBay into the high $30s with limited downside risk, reasons the investment firm.
- Shares of eBay fell about 9% after its guidance disappointed earlier this week,
Thu, Oct. 20, 9:17 AM
Wed, Oct. 19, 5:35 PM
Wed, Oct. 19, 5:15 PM
- Ebay (NASDAQ:EBAY) reports Q3 gross merchandise volume of $20.1B (+3;, $20.3B estimated), revenue of $2.2B (+6%), EPS of $0.45 ($0.01 above estimates), net income from continuing operations of $509M, operating cash flow of $802M, free cash flow of $617M and share repurchases of $500M.
- Operating margins declined to 29.9% (vs. 31.9% Y/Y), effective tax rate increased to 22.2% (vs. 20.2% Y/Y).
- Projections: Q416 – net revenue of $2.36B-$2.41B (consensus $2.4B), EPS of $0.52-$0.54 (consensus $0.54); FY16 – net revenue of $8.95B-$9B, EPS of $1.85-$1.90
- Conference call
- Press release
Wed, Oct. 19, 4:18 PM
Tue, Oct. 18, 5:35 PM
Sat, Oct. 15, 11:43 AM
- E-commerce sales during the holiday season are forecast to increase 17.2% this year to $94.71B, which represents a record 10.2% of all retail sales for the period.
- The +17% growth also represents the fastest pace for holiday e-commerce sales since 2011.
- Impressively, Amazon is expected to grow its holiday e-commerce market share above the 25% it took down last year.
- Outside of Amazon, investors can bet on online retail broadly through the Amplify Online Retail ETF (NASDAQ:IBUY). IBUY aims to match the price and yield performance of the EQM Online Retail Index.
- The IBUY is up 8% since launching in April, compared to a 5% drop for the S&P Retail ETF (NYSEARCA:XRT).
- The top ten holdings of the Amplify Online Retail ETF are Etsy (NASDAQ:ETSY), Grubhub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), eBAY (NASDAQ:EBAY), RetailMeNot (NASDAQ:SALE), Copart (NASDAQ:CPRT), 1-800-Flowers.com (NASDAQ:FLWS), Amazon (NASDAQ:AMZN), Stamps.com (NASDAQ:STMP), and NutriSystem (NASDAQ:NTRI).
- This year's e-commerce boom will also be a net positive for shippers FedEx (NYSE:FDX) and UPS (NYSE:UPS), despite the increasing logistical challenges amid a higher mix of large packages. There's also Wal-Mart (NYSE:WMT) to consider after the company made a dramatic commitment to invest more in e-commerce during an investor meeting a few weeks ago.
- Previously: Winners and losers from the retail sales report (Oct. 14)
Thu, Oct. 13, 7:43 AM
- MercadoLibre (NASDAQ:MELI) announces that eBay (NASDAQ:EBAY) plans to sell 5.5M shares in a follow-on offering. The underwriters will also have the option to purchase another 825K shares from eBay.
- MercadoLibre will not receive any proceeds from the sale, while eBay could bring in over $1B that it can funnel into buyback activity.
- MELI -6.33% premarket to $171.62
- EBAY +1.21% premarket to $31.88.
- Source: Press Release
Wed, Oct. 12, 5:35 PM
Mon, Oct. 10, 10:00 AM
Fri, Oct. 7, 9:31 AM
- Channeladvisor reports eBay's (NASDAQ:EBAY) same-store sales increased 4.0% in September. The mark is a sequential drop from the 5.9% pace in August.
- The average growth rate across the e-commerce industry was 15% during the month.
- SSS breakdowns: eBay auctions -30.1%, eBay fixed-price +2.0% y/y, eBay Motors (parts and accessories) +12.6%.
Mon, Oct. 3, 12:16 PM
- Analyst William Power restates an Outperform rating and $155 price target (current price $129.97) on Facebook (FB -0.1%) subsequent the company's introduction of a new e-commerce product.
- Power: "Combined with Messenger, Facebook is well positioned, in our view, to take a bite out of the e-commerce Marketplace market, and in turn, boost revenues from the lucrative retail/e-commerce market. While Facebook has been testing a version of marketplace functionality, and has a light classifieds tool live in Australia, today’s announcement is clearly a more concrete step towards competing in the market dominated by Amazon and eBay, and to a lesser extent by companies such as walmart.com, Jet and Rakuten."
- eBay (EBAY -1.9%) shares have been hardest hit on Facebook's announcement, falling over 4% from late-Friday levels in earlier trading. Amazon (AMZN -0.2%) shares have been relatively unmoved over the same period.
Mon, Oct. 3, 8:43 AM
- Facebook (NASDAQ:FB) has announced its new "Marketplace" section, designed to formalize local buying and selling that was already going on via its "Groups" feature.
- It's not Facebook's first try at such an offering, but the new take on its marketplace is better enabled for mobile vs. a desktop PC-only product nine years ago.
- EBay (NASDAQ:EBAY) is off 3.5 premarket in response. Facebook is up 0.2% premarket.
- Facebook says furniture, cars and clothes top the most popular items that people are buying and selling via its platform.