The Performance Of The Electricity Giant Is Expected To Exceed The Traditional Retail Forced Contraction Front?

According to foreign media reports, as consumers rush to Amazon etc. Electronic Commerce Retailers are forced to reduce investment in physical stores and spanfer these investments to the business of e-commerce. At the same time, e-commerce websites began to make profits, and the growth rate exceeded the expectations of the market.

Although e-commerce accounts for only a small proportion of the total retail sales of social goods, the share of the industry has always been growing, which is why WAL-MART's recent announcement of its acquisition of Amazon's rival Jet.com, as well as Alibaba, Amazon and eBay and other well-known e-commerce listed companies outperformed the market expectations.

　　 Alibaba The group's shares rose 4.44 U.S. dollars on Thursday in the NYSE regular trading, or 5.08%, at $91.77. The company's stock price reached its highest level in 52 weeks, reaching the highest level of $92.80 a day. In the past 3 months, Alibaba group's stock price has risen 15%, which has increased by 19% over the past year. The share price was stronger than the same period. The standard & Poor's 500 index rose 6% in the past 3 months, up 5% in the past year.

Alibaba group's share price continued to rise, thanks to the company's net profit and revenue both exceeded market expectations. Alibaba group's mobile shopping sales, which benefited for the first time, surpassed the PC side. The company's second quarter revenue was 32 billion 154 million yuan (US $4 billion 838 million), up 59% from 20 billion 245 million yuan in the same period last year. Alibaba group's net profit in the second quarter was 7 billion 142 million yuan (US $1 billion 75 million), down 77% from 30 billion 816 million yuan in the same period last year. Alibaba group's second quarter net profit year-on-year decline, mainly due to the last year's earnings report, including the stripping of Ali pictures of RMB 24 billion 734 million yuan non recurring gains.

According to US GAAP, Alibaba group's net profit in the second quarter was 12 billion 187 million yuan (US $1 billion 834 million), up 28% from 9 billion 496 million yuan in the same period last year. In accordance with US GAAP, the Alibaba group's diluted earnings per US depository receipts in the second quarter were 4.90 yuan (US $0.74), up from 3.68 yuan in the same period last year. Alibaba group's second quarter performance exceeded market expectations. According to a survey by Townsend Reuters, the market analysts had expected that the second quarter revenue of Alibaba group was $4 billion 540 million, and the earnings per share were $0.63.

In Alibaba group's revenue, revenue from China's retail platform was 23 billion 383 million yuan (US $3 billion 518 million), an increase of 49% over the same period last year. Mobile revenue from China's retail platform was 17 billion 514 million yuan (US $2 billion 635 million), a 119% increase over the same period last year, occupying 75% of China's retail platform's total revenue. Alibaba group's average monthly mobile users in June reached 427 million, an increase of 17 million compared with March this year. The annual active buyers of China's retail platform reached 434 million, representing a 11 million increase in the number of active buyers in the previous quarter.

Driven by a 4% increase in the number of active buyers, eBay also released its second quarter earnings forecast in July, pushing the company to raise its revenue forecast for the year. Amazon's revenue in the second quarter surged 31% to $30 billion 500 million, exceeding the average market forecast of $29 billion 500 million. The expected performance of Amazon supermarket is mainly due to the surge in e-commerce revenues, the increase in the number of gold medal members, and the rapid growth of cloud computing services AWS.

With the rapid growth of e-commerce giants, more and more traditional retailers have been squeezed. Morgan Stanley expects us retail sales to drop by 2.8% in July this year. Messi's Department reported on Thursday that its second quarter revenue fell by 4% compared to the same period last year, and announced that it would close another 100 retail stores in the United States before the beginning of 2017.

WAL-MART is also shrinking the front line. The company announced in January that it would close 269 stores around the world, but only 1% of the total sales area. The National Retail Federation predicted that the total retail sales of the United States will grow by 3.1% this year, but sales of non physical stores, including e-commerce and catalogues, will increase by 9%.

With the booming development of e-commerce and the growth of Alibaba and Amazon, their performance has been promoted by streaming media, cloud computing and other businesses. Amazon's cloud computing revenue grew by 58% in the second quarter, while sales in North America and international media increased by 10.5% over the same period last year. In the past 3 months, although Amazon's stock price has risen by only 8.2%, the company's stock price has risen more than 46% in the past year, which is far stronger than that of the same period.

Alibaba group's earnings report showed that its cloud computing business continued to grow rapidly, and its revenue in the second quarter reached 1 billion 243 million yuan (US $187 million), an increase of 156% over the same period last year. Alibaba group's cloud computing business adjusted EBITDA losses in the second quarter narrowed to RMB 158 million yuan (about 24 million US dollars), which is better than RMB 368 million yuan in the same period last year. The revenue of digital media and entertainment business in the second quarter was 3 billion 135 million yuan, an increase of 286% over the same period last year. The operating loss was 1 billion 853 million yuan, and the adjusted EBITA loss was RMB 996 million yuan.

Daniel Morgan, an investment company SynovusTrustCompany fund manager, said in a recently released investor report that Alibaba group's acquisition of video website Youku potatoes and e-commerce company Lazada can increase the growth prospects of the company and provide additional monetization channels for the company. "DanielMorgan" Morgan also said that Amazon is also investing in cloud computing, Internet payment, entertainment and media revenue streams, which has proved to be an effective strategy for the diversified business of e-commerce giants.

According to the statistics provided by FactSet, the current stock price rating of Alibaba group and Amazon is equivalent to "buying". Among them, Alibaba group's average target stock price is US $97.80, which means that the stock price of the company still has an increase of more than 6%.