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Ecommerce Stocks Could be Recession Proof as Household Spending Holds Up (AMZN, FBCD, SHOP, EBAY, BABA, PYPL, CVNA, ONLN)

The ecommerce space is a prime example of a new path toward recession-proof non-cyclicality in a world where household savings are robust into the teeth…

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The ecommerce space is a prime example of a new path toward recession-proof non-cyclicality in a world where household savings are robust into the teeth of a potential recession. (1)

At this point, Goldman Sachs and other major Wall Street firms are starting to project a strengthening likelihood of a near-term recession as the Fed begins to tighten monetary policy while prices for basic goods, including gas and electricity, are rising. (2)

But, unlike other past recessionary periods, households have savings to tap to stay in the game, helping the most efficient retailers stand their ground as demand shifts. (3)

The ecommerce space could be a beneficiary because it offers greater efficiency in acquiring basic goods such as clothing, household durable goods, and basic daily necessities. When you shop online, you don’t have to use gasoline or time or energy to gain access to the goods you need. Ecommerce cuts out the middle-man. (4)

The pandemic was an exercise in market penetration for ecommerce retailers, converting the previously unconverted, providing everyone with a reason to try 21st century shopping, bringing hundreds of millions of people into the fold of a new way to acquire goods. (5)

For retailers already positioned for this boon, it represents a structural transformation and a tailwind. With that in mind, we take a look at some of the most interesting growth stories in the ecommerce space below.

 

Shopify Inc. (NYSE:SHOP) operates a cloud-based commerce platform designed for small and medium-sized businesses. Its software is used by merchants to run business across all sales channels, including web, tablet and mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops.

The firm’s platform provides merchants with a single view of business and customers and enables them to manage products and inventory, process orders and payments, build customer relationships and leverage analytics and reporting. It focuses on merchant and subscription solutions.

Shopify Inc. (NYSE:SHOP) recently announced financial results for the quarter ended March 31, 2022, including total revenue in the first quarter grew 22% to $1.2 billion, which represents a two-year compound annual growth rate of 60%. The first quarter of 2021 marked the highest revenue growth in the company’s history as a public company driven by stimulus and COVID-19 lockdowns. Shopify merchants are emerging from the last two years stronger and better prepared for commerce everywhere. (6)

“While we’ve experienced massive macro shifts since the start of the pandemic, the one mainstay has been that Shopify is the commerce platform of choice for merchants in any environment, with the ability to support commerce on any surface,” said Harley Finkelstein, Shopify’s President. “This has earned Shopify significant merchant trust and the ability to help them with more parts of their business, which is why we are eager to bring Deliverr’s team and technology to our merchants.”

Even in light of this news, SHOP has had a rough past week of trading action, with shares sinking something like -8% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.

Shopify Inc. (NYSE:SHOP) managed to rope in revenues totaling $1.2B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 21.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($7.2B against $681.9M).

 

FBC Holding Inc. (OTC US:FBCD) is a tiny newcomer in the ecommerce retail fashion space that has started to make some waves, up 150% in the past few days as the company lays its foundation as a brand in the street fashion domain after announcing its intention to land a major influencer brand ambassador and connecting up with Amazon and eBay on the distribution side.

The company’s primary brand is “Formrunner” (https://formrunnerapparel.com/) (7).

FBC Holding Inc. (OTC US:FBCD) announced this week that it has begun selling its Premium High-End Apparel by expanding its E-Commerce presence on eBay.com. The company is thrilled to add sales from eBay as an additional revenue opportunity following its successful launch on Amazon last week.

President & CEO Lisa Nelson states “We are beyond excited to offer our Apparel on eBay! Our clothing will be available with eBay’s “Buy it Now” option and will kick off the launch with free shipping to the entire United States. Customers around the world will now have an additional platform to purchase our clothing with more to come moving forward.” Lisa Nelson also stated, “Over the past two years, Formrunner Apparel Inc. has been continuously expanding the company’s vertical sales channels, and eBay along with Amazon, are two great retail giants that will assist with expansion throughout the United States along with the rest of the world!” (8)

As noted in the release, with 185 million active buyers and nineteen million sellers worldwide, eBay is one of the world’s leading marketplace and eCommerce platforms. eBay serves customers globally. Like every popular site, there are tons of loyal customers who prefer to purchase on eBay. Customers may prefer to purchase from merchants like these than a site that they land on the first time. eBay also offers affiliate programs through multiple affiliate marketers will take your product link and promote your products to receive the affiliate commission. This will help to increase your sales. So, in addition to running your affiliate program, you can also benefit from the eBay affiliates.

The release goes on to note that the apparel market encompasses every kind of clothing, from sportswear to business wear, from value clothing to statement luxury pieces. After difficulties in 2020 during the coronavirus pandemic, when sales across the apparel industry took a hit, the global demand for clothing and shoes is set to rise again. The revenue of the global apparel market was calculated to amount to 1.5 trillion U.S. dollars in 2021 and was predicted to increase to approximately two trillion dollars by 2026. The countries that account for most of this apparel demand are the United States and China, both generating higher revenues than any other country.

FBC Holding Inc. (OTC US:FBCD) has been powering higher over recent days as the crowd starts to take notice. The recent upside momentum comes after a deep bear move well into sub-penny status driven by the company’s reorganization and pivot. But now that we have passed through that phase, shares may have found a more stable bottom in front of emerging catalysts that speak to the company’s new identity and momentum.

 

Alibaba Group Holding Ltd. ADR (NYSE:BABA) engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through its Core Commerce, Cloud Computing, Digital Media & Entertainment, and Innovation Initiatives and Others segments.

The Core Commerce segment consists of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers a complete suite of cloud services, including elastic computing, database, storage, network virtualization, large scale computing, security, management and application, big data analytics, a machine learning platform, and Internet of Things (IoT) services. The Digital Media & Entertainment segment relates to the Youko Tudou and UC Browser businesses. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, and Tmall Genie

Alibaba Group Holding Ltd. ADR (NYSE:BABA) recently announced that it has joined Low Carbon Patent Pledge (LCPP), an international platform that encourages sharing patents for low carbon technologies, to accelerate adoption of green technology and foster collaborative innovation by making nine key patents for green data center technology available for free to external parties. In keeping with its support for green initiatives, Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group also aims to have its global data centers running entirely on clean energy by 2030, starting with upgrades to five of its hyper-scale data centers in China.

“We believe technology innovation is a key driver in transitioning to the low-carbon circular economy of the future. As a pioneer and global technology leader, we are committed to taking broader social responsibility to use technology to level the playing field and to empower the wider social groups, creating long-term value. We are excited to join the pledge as a way to encourage a collective approach to build a sustainable and inclusive future for the society and environment through open collaboration, joint innovations and mutual inspiration.” said Dr. Chen Long, Vice President of Alibaba Group and Chair of Alibaba’s Sustainability Steering Committee. (9)

Traders will note -6% plucked from share pricing for the stock in the past week. That said, BABA has evidenced sudden upward volatility on many prior occasions. What’s more, the name has seen a growing influx of trading interest.

Alibaba Group Holding Ltd. ADR (NYSE:BABA) has a significant war chest ($654.4B) of cash on the books, which compares with about $502.2B in total current liabilities. One should also note that debt has been growing over recent quarters. BABA is pulling in trailing 12-month revenues of $1008.6B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 14.3%.

 

Other key ecommerce players include Amazon.com Inc. (Nasdaq:AMZN), eBay Inc. (Nasdaq:EBAY), PayPal Holdings Inc. (Nasdaq:PYPL), Carvana Co. (NYSE:CVNA), and ProShares Online Retail ETF (NYSEArca:ONLN).

 

References:

  1. https://www.washingtonpost.com/business/2022/02/23/savings-bank-accounts-covid/
  2. https://www.bloomberg.com/news/articles/2022-05-15/goldman-s-blankfein-says-companies-should-prepare-for-recession
  3. https://www.forexlive.com/news/world-bank-president-malpass-russian-invasion-of-ukraine-could-trigger-a-global-recession-20220526/
  4. https://hbr.org/2009/04/how-to-market-in-a-downturn-2
  5. https://www.forbes.com/sites/jasongoldberg/2022/02/18/e-commerce-sales-grew-50-to-870-billion-during-the-pandemic/
  6. https://finance.yahoo.com/news/shopify-reports-first-quarter-2022-110000301.html
  7. https://formrunnerapparel.com/
  8. https://www.otcmarkets.com/stock/FBCD/news/FBC-Holding-Inc-FBCD-Launches-Premium-High-End-Apparel-on-eBayTM-Platform?id=358337
  9. https://finance.yahoo.com/news/alibaba-group-joins-low-carbon-002400632.html

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

The post Ecommerce Stocks Could be Recession Proof as Household Spending Holds Up (AMZN, FBCD, SHOP, EBAY, BABA, PYPL, CVNA, ONLN) appeared first on Wall Street PR.

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There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

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While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

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According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

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The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

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Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

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According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

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