The profit of Amazon.com tripled to nearly USD 10 billion from July to September as strong sales in its cloud-computing, advertising and retail units helped the company continue its rebound from post-pandemic lows. This momentum could jump over to the rather sluggishly performing stocks of Alibaba & JD, especially combined with a potential year-end rally.
Alibaba Group Holding Limited stock for instance already traded higher yesterday as Taobao and Tmall Group on Tuesday commenced presales for its Singles Day promotion with a group of live streamers. The live streamers included top influencer Austin Li Jiaqi and actor-singer Allen Lin Yilun, each yielding over 100 million yuan (USD 14 million) in total sales by midnight, SCMP cites from company data. Within an hour after its presales started, the mainland platforms of Taobao and Tmall Group recorded over 200% year-on-year increase in turnover for 1,300 brands, while sales of nearly 700 brands grew over five times.
The group is offering over 80 million products at their lowest prices on the 15th anniversary of Singles Day. E-commerce rival JD.Com, Inc kicked off its Singles Day campaign this year ahead of Alibaba, showcasing its vast inventory of over 800 million products available for immediate purchase. Moreover, the enlarged self-operated logistics network of JD.com in mainland China might boost demand for its retail infrastructure and logistics services, leading to wider margins via greater utilization of its fulfilment assets. The company offers extensive logistics facilities, technology and infrastructure to third-party merchants. User orders and overall transaction volume were up four times on last year's figures within 10 minutes of its campaign's start on Monday. Chinese stocks also got a boost from reports over stimulus plan from Beijing as the country grappled with a lackluster economy worsened by the U.S. semiconductor sanctions.
Source: 26/10/2023, Bloomberg
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