122.26 +0.15 (0.13%)
After hours: 7:58PM EDT
|Bid||122.11 x 800|
|Ask||122.15 x 800|
|Day's Range||121.82 - 123.89|
|52 Week Range||102.00 - 133.38|
|Beta (5Y Monthly)||0.40|
|PE Ratio (TTM)||24.42|
|Earnings Date||Aug. 18, 2020|
|Forward Dividend & Yield||2.16 (1.75%)|
|Ex-Dividend Date||Aug. 13, 2020|
|1y Target Est||135.06|
(Bloomberg) -- EBay Inc. raised its forecast for revenue and earnings in the current quarter as people flock to the online marketplace amid the Covid-19 pandemic that has left most physical stores shuttered for more than two months.EBay said it now expects sales of as much as $2.8 billion in the second quarter, up from a previous forecast for as much as $2.48 billion. In a filing the company said it sees adjusted earnings per share of as much as $1.06, up from 80 cents previously.More people are being drawn to EBay’s marketplace across a wide variety of categories, from home and garden to electronics, fashion and auto parts, EBay said. The site has seen about 6 million new and reactivated buyers added in April and May. Tens of thousands of small-business sellers have also flocked to the platform since March. Shares in the San Jose, California-based company jumped as much as 12%, hitting an intraday high of $51.88. The stock has gained 38% this year.EBay earlier this year named former Walmart Inc. executive Jamie Iannoneas chief executive officer. Activist investors Elliott Management Corp. and Starboard Value have been pushing EBay to increase profitability by selling pieces of itself following years of stagnation in its core marketplace business.The company in February completed the sale of its event-tickets marketplace StubHub to Viagogo for $4.05 billion and is exploring options for the classifieds business. EBay is also trying to boost revenue from its advertising and payments businesses. In the statement, EBay said revenue from its classifieds business is at the high end of its previously disclosed expectations, with automotive subscription revenue recovering as dealerships reopen across international markets.To further engage new buyers, EBay is making additional investments in marketing and technology to keep people coming back and buying on the site more often.EBay didn’t update its full-year guidance at this time, but said it will likely be above previously announced ranges. In April, the company said it expects 2020 revenue of as much as $9.76 billion and adjusted earnings per share of as much as $3.10Taking a step to address the wave of protests over racial injustice sweeping the U.S. in the past week, EBay said it is making a donation of more than $1.3 million, split between the NAACP Legal Defense Fund and the Equal Justice Initiative.(Updates with shares in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Euphemisms allow us to avoid confronting the cold, hard truth. Their ambiguity makes the terrible seem merely bad and the bad seem almost OK. It is a softening of subjective reality that allows us to happily live in deluded denial. This isn't a great strategy for relationships, for careers and, especially, for investors.Consider that we no longer have car crashes that kill more than 40,000 Americans a year. Instead, we have “accidents” caused by inattentive, reckless or -- to use a euphemism --impaired drivers. Companies don’t fire thousands of employees at a time, driving the unemployment rate higher; they downsize or, even worse, right-size. Even the word euphemism is itself a euphemism. It is a lie designed to hide an ugly truth from ourselves. “Banana” was an infamous economic euphemism during the 1970s. Alfred Kahn, then chairman of the Council on Wage and Price Stability, was told never to use the word “depression” or even "recession" when speaking at the White House or in public. To warn of potential economic trouble, he discussed "the worst banana you ever saw."As it turns out, refusing to use the word “recession” was a poor political strategy for Kahn’s boss, President Jimmy Carter. He lost his re-election bid in a landslide. Or perhaps it goes down easier to note that Carter “came in second” due to a “kumquat.”(1)Euphemisms don't help us make better decisions or confront challenges directly. As reported by Bloomberg News and the New York Times, the skyrocketing use of the word “unprecedented” during quarterly earnings conference calls serves as a reminder. We all understand the extent of lockdown orders, with second-quarter gross domestic product cut in half. But here's the issue: Investors don't expect management to be clairvoyant, but they do expect them to have plans for when disaster strikes and to execute that plan when necessary. This leads to three basic questions investors should ask corporate management:No. 1. What did you do to prepare for this sort of event?No. 2. How are you managing in the crisis?No. 3. What are your plans for the post-pandemic future?Some companies are much better situated by dint of their business model than others. Netflix Inc. is a natural winner in an era of sheltering at home. But entertainment giant Walt Disney Co., with its theme parks and theatrical films, was badly hit by the pandemic. It also had the foresight to diversify from those “live” businesses, with new services such as the Disney+ streaming service, which now has more than 55 million paying subscribers. Unprecedented events did not derail it from planning for home entertainment and executing that plan. Other live entertainment companies such as Live Nation Entertainment Inc., Madison Square Garden Entertainment Corp. or Six Flags Entertainment Corp. were not as prescient. Consider retail companies such as Amazon.com Inc., Target Corp. and Walmart Inc. -- all have done an excellent job executing a so-called last-mile strategy. Other retailers selling essentials to the same customers have not. Investors judge these managements, in part, by how they respond to a crisis like Covid-19. This particular event never happened before, but shareholders still want to know how corporate chiefs plan on managing it.The overemphasis on "unprecedented" deserves attention because it's so trite. Novel, first-time events occur with startling regularity. The normal state of human affairs has been persistent and unprecedented change. It isn't just the global health risks of this moment; it is true in every sphere of human endeavor. The default setting of humanity is to create new ideas, innovations, concepts, business models, technologies and solutions.Under the best of circumstances, we have limited “visibility” -- another euphemism -- about almost everything. Consider corporate revenues and profits. Look how often companies update, amend and revise quarterly earnings “guidance” -- one more euphemism, this one for "forecast." Yes, these forecasts become more accurate as the end of a quarter approaches, but that's only because more hard data has accumulated. In the end, it only comes down to informed guesswork.These may be unprecedented times, but they are not really out of the ordinary. Uncertainty always rules, and no one ever knows the future. For that reasons, no one really knows or even has a good sense of when the economy will recover, how many will die and when the pandemic will be over. Pretending otherwise with euphemisms does not make it any less so.Just remember that there is exactly the same amount of uncertainty now about the future as there always is. During times of crisis, you simply lose the ability to fool yourself about it.(1) When the United Fruit Co., a large banana producer, objected to the use of the word “banana,” Kahn shifted his choice of euphemism to "kumquat.” Really.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Amazon.com Inc. is in preliminary talks to buy a stake in No. 2 Indian carrier Bharti Airtel Ltd. for at least $2 billion, Reuters reported, joining Facebook Inc. and other U.S. giants in betting on one of the world’s fastest-growing internet arenas.The U.S. online retailer is in early-stage discussions to buy about a 5% stake in the Indian wireless operator, Reuters said, citing anonymous sources. A deal will help Amazon access Bharti’s 300 million subscribers -- a user base akin to the entire U.S. population.American technology and investment giants have been buying stakes in Indian companies to build their presence in Asia’s second-most populous nation. Facebook agreed to invest about $5.7 billion into a unit of Mukesh Ambani’s Reliance Industries Ltd. in April, while Microsoft Corp. is reportedly considering a stake in the same company.Amazon already has deep roots in India, where Chief Executive Officer Jeff Bezos has visited and vowed to build one of his biggest e-commerce operations outside of the U.S. Bezos, now the world’s richest man, said during a trip in January that his company would invest another $1 billion on top of the billions it’s shelled out to bring small and medium-size businesses online. Amazon is now vying with Walmart Inc.’s Flipkart to tap an increasingly affluent population adopting smartphones at a rapid clip.Read more: Jeff Bezos’s India Visit Marked by Probe and ProtestsAn Amazon spokeswoman in India declined to comment. “We routinely work with all digital and OTT players and have deep engagement with them to bring their products, content and services for our wide customer base. Beyond that there is no other activity to report,” a Bharti spokesperson said.An influx of capital would be welcome to New Delhi-based Bharti Airtel, which has come under pressure to beef up its offerings ever since Ambani’s technology venture went on a deal spree to secure about $10 billion in investment from Facebook to KKR & Co. Airtel’s billionaire Chairman Sunil Mittal may be looking to leverage the diverse businesses in his empire just as Ambani goes into overdrive to transform his oil-and-petrochemicals company into an Indian e-commerce and digital payments titan with Jio Platforms.Read more: How Facebook’s Reliance Deal Upends a $1 Trillion Digital ArenaIn its 25 years of operations, Bharti Airtel has survived frequent policy changes in one of the world’s toughest telecommunications markets. It lost its position as India’s largest wireless carrier last year to Ambani’s Reliance Jio Infocomm Ltd., which debuted in 2016 and shook up the industry with free calls and cheap data. The most recent blow to Bharti Airtel came in October, when the nation’s top court in a shock ruling ordered it to pay $3 billion in back fees.The technology ambitions of Ambani, Asia’s richest man, have turned the spotlight on his telecommunications rivals, including Vodafone Idea Ltd., the struggling Indian business of British operator Vodafone Group Plc. The Financial Times reported May 28 that Alphabet Inc.’s Google is considering acquiring a stake in that venture. Vodafone Idea said it isn’t currently considering any such proposal.Besides telecommunications, Mittal’s Bharti Enterprises has businesses spanning insurance, real estate, education and farm food.(Updates with Amazon’s declining comment in the fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In India, it's Google and Walmart-owned PhonePe that are racing neck-and-neck to be the top player in the mobile payments market, while Facebook remains mired in a regulatory maze for WhatsApp Pay’s rollout. Google Pay had more than 75 million transacting users last month, ahead of PhonePe’s 60 million users, people familiar with the companies’ figures told TechCrunch. In comparison, SoftBank -backed Paytm's app saw 30 million transacting users last month and an average of 10 million users transacted each day, people familiar with the matter said.
(Bloomberg) -- Walmart de Mexico SAB’s landmark $370 million settlement came as it faced potential criminal tax fraud charges amid a crackdown by the Mexican government on big companies.Earlier this year, officials filed a criminal complaint with federal prosecutors over the strategy that Walmart Inc.’s Mexican business, known as Walmex, used to minimize its profits from the 2013 sale of a restaurant chain, according to three people familiar with the matter who requested anonymity since tax matters are protected by privacy laws.The settlement, announced last month, was the largest in recent history, according to half a dozen tax experts, and it marked a decisive moment in Mexican President Andres Manuel Lopez Obrador battle to end widespread tax evasion in Mexico since taking office in late 2018. It also reduces the likelihood that the world’s largest retailer will face further prosecution on tax issues.The agreement has raised concerns for chief financial officers and auditors, who fear the government could turn threats of prosecution and public shame on them, and many are rushing to settle tax disputes, the people said.Only days after the Walmex settlement was announced, Coke bottler and convenience store operator Fomento Economico Mexicano SAB said it would pay an even bigger settlement of 8.8 billion pesos, or about $410 million, to avoid going to court. Over the weekend, Lopez Obrador said International Business Machines Corp. agreed to pay 669 million pesos.Walmex’s payment is equal to just over 1% of the company’s annual revenue from 2019. Femsa’s settlement represents less than 2% of its 2019 revenue.‘Complex’ LawsMexico’s tax authority, known as SAT, didn’t respond to a request for comment. In response to questions from Bloomberg News, Walmex said that it had worked with tax authorities to interpret “complex” laws. “As a result, we closed several open tax assessments before the SAT to provide certainty and to conclude these complex matters,” Walmex said.Walmex shares fell 0.6% on Wednesday to 55.01 pesos, their lowest level since mid-April, paring the year-to-date gain to 1.6%. Mexico’s benchmark IPC index has fallen 12%. Walmex was Walmart’s first foray outside the U.S. While the retailer has struggled in regions like Germany, Japan and Brazil, Mexico has been the jewel of Walmart’s international operations. CEO Doug McMillon called the business a “gem” in a recent investor conference.Sales grew 5.2% there last year, making it the fastest-growing region in Walmart’s $124 billion international unit. While Walmart has pretty much stopped opening new stores in the U.S., it opened 134 in Mexico last year.Nonetheless, Walmex’s reputation in Mexico suffered following allegations it bribed Mexican officials over a decade ago to fast track store openings. Walmart Inc. agreed to pay $282 million in penalties last year after a seven-year corruption probe that spanned the globe.Late last year, Mexico passed new laws that classify tax fraud as organized crime and allow officials to jail executives facing charges as they await trial. Lopez Obrador argued the country’s wealthy and major companies had enjoyed tax forgiveness for decades under “corrupt” administrations.As the coronavirus outbreak gripped the country, Lopez Obrador refused to offer fiscal breaks and instead demanded that big companies cough up billions of pesos in tax debts. While he refrained from naming Walmex, he repeatedly said that major companies haven’t paid enough taxes and that some had broken the law.The government’s push to target tax evasion has gained urgency as Mexico faces a sharp downturn in revenue due to the current recession.Policy ShiftThe crackdown on companies marks a change over recent decades, when the government took a much less aggressive stance with big companies as part of a strategy to promote investment and create jobs, said the people familiar with the matter. Foreign companies in particular were rarely targeted with criminal complaints.Walmex’s settlement is related to the 8.2 billion-peso sale in 2014 of its restaurant chain Vips to Alsea SAB, which operates the Starbucks and Domino’s Pizza brands in Mexico and other countries. Tax advisers initially thought the company would be able to easily fight the claim. But last week’s settlement “sent shockwaves” through tax and corporate circles, said Mauricio Martinez, a partner at Deloitte in Mexico.Walmex had not declared any taxes at the time of the sale, two people with knowledge of the audit said. The tactics used by Walmex to reduce its tax obligations have been used by other companies, according to several of the tax experts.Walmex did not comment on the tax strategy it used in the sale that sparked the original audit, but said “the payment is a result of the review of the substantial tax assessments open from 2014 to 2018 and our work with the SAT to interpret these complex tax laws.”(Adds share move in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
“[Our] problems as a nation run much deeper than one horrible event,” McMillon said, adding, “Until, we as a nation, confront and address these hard realities, we will never achieve the best of what we can be.”
Walmart Inc. (NYSE: WMT) today announced shareholder voting results for its Formal Business and Annual Shareholders’ Meeting, which was conducted by a virtual meeting due to the public health impact from the coronavirus outbreak (COVID-19). Approximately 91.7 percent of all outstanding shares were represented at the meeting.
The current price action is less of an indictment on the morality of investors and more of a calculated gamble that the economy is poised to rebound as lockdowns end.
The online retailer's sales didn't grow nearly as much as competitors' online sales last quarter.
Yahoo Finance’s Julia La Roche joins Kristin Myers to discuss the latest headlines from Walmart's annual shareholders meeting.
Here's why stocks continue to be in rally mode despite the horrors sweeping America right now.
Low yields and safe payout ratios indicate businesses that could double their dividends in the future.
According to a report from RBC Capital Markets, the effects of the civil unrest is a “potentially negative development for stocks." Yahoo Finance's Sibile Marcellus joins The First Trade to discuss.
Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss today’s market action with Heritage Capital President Paul Schatz
U.S. stocks posted gains on Monday as signs of U.S. economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions. All three major stock indexes began the month with gains of less than 1% on the heels of a strong rally in May. "Certainly the pace of the stock market recovery can't contnue at the pace it has been," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
The Dow Jones Industrial Average (DJINDICES: ^DJI) shook off some truly bad news on Monday, up about 0.2% at 11:40 a.m. EDT. Just as the U.S. economy was beginning to recover from the novel coronavirus pandemic, civil unrest in major U.S. cities threatened to impede that recovery. Shares of Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) made only small moves as the companies closed some stores on Sunday due to the unrest.
Wall Street's major indexes rose on Monday as investors chose to look past violent protests across the country over racial inequality and focused more on economic data that bolstered views of a quick post-pandemic recovery. U.S. manufacturing activity eased off an 11-year low in May, an Institute for Supply Management (ISM) survey showed, the strongest sign yet that the worst of the economic downturn was behind as businesses reopen.
On Monday morning, the markets are grappling with ongoing protests over the death of George Floyd in police custody. Chris Versace, Tematica Research CIO says, "we're just starting to put the pandemic in the rear view mirror, this could be another setback for recovery."
In this episode of MarketFoolery, Chris Hill chats with Fool.com contributor Dan Kline about the latest news from the markets. They look at the retail space and how retail businesses are serving underserved communities.
We asked our freelance writers to share their top TSX stock picks for June - their picks include Lightspeed POS (TSX:LSPD), Restaurant Brands International (TSX:QSR)(NYSE:QSR), and Canadian Pacific Railway Ltd. (TSX:CP)(NYSE:CP).The post Top TSX Stock Picks for June appeared first on The Motley Fool Canada.
The warehouse retailer does a lot of things well, but online retail hasn't traditionally been one of them.
June will be a test: Can the economy reopen without complications? The results will largely determine what stocks to watch.