Tag Archives: bidu

Alibaba Has Worst Day In Over A Year On SEC Accounting Probe

Alibaba ( BABA ) unnerved investors Wednesday by disclosing that the Securities and Exchange Commission is probing whether its accounting into its Singles Day event and various other practices violate U.S. securities laws. Shares of the e-commerce giant fell 6.8% to 75.59 on the stock market today , Alibaba’s worst one-day percentage loss since a 8.8% dive on Jan. 29, 2015. Alibaba dived below the 50-day moving average where the stock had found support in recent days. Alibaba fell as low as 74.12 intraday, nearly undercutting its 200-day line as well. Alibaba’s losses also took their toll on Yahoo ( YHOO ), which fell 5.2% Wednesday. Yahoo has sought bids for its core U.S. assets, but most of its value is in stakes of Alibaba and Yahoo Japan. IBD’s Take: How healthy is Alibaba’s stock, and how does it compare vs. key rivals such as Amazon? Find out at IBD Stock Checkup Alibaba reported the SEC probe in an SEC filing. Here is the key passage. “Earlier this year, the U.S. Securities and Exchange Commission, or SEC, informed us that it was initiating an investigation into whether there have been any violations of the federal securities laws. The SEC has requested that we voluntarily provide it with documents and information relating to, among other things: our consolidation policies and practices (including our accounting for Cainiao Network as an equity method investee), our policies and practices applicable to related party transactions in general, and our reporting of operating data from Singles Day. We are voluntarily disclosing this SEC request for information and cooperating with the SEC and, through our legal counsel, have been providing the SEC with requested documents and information. The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.” Singles Day — Nov. 11 — has become the world’s largest e-commerce event, far above Cyber Monday or the new Amazon ( AMZN ) Prime Day last year. Alibaba had $13.7 billion in sales in last year’s event, with JD.com ( JD ) and other Chinese retailers also taking part. JD stock fell 3.4%, perhaps in sympathy with Alibaba. 020 Fuels China Internets Separately, Alibaba, Baidu ( BIDU ), Tencent ( TCEHY ) and other Chinese Internet companies should should see continued strong growth in online-to-offline spending, Moody’s says. Moody’s sees Baidu, Alibaba and Tencent, sometimes referred to as “BAT,” should deliver 15%-30% revenue growth over the next  12-18 months, partly due to O2O efforts that have increased customer engagement and monetization. Alibaba, Baidu and Tencent have spent billions of dollars on O2O-related initiatives in recent years. “For all three companies, we expect that their investments will remain high, as they establish or acquire end-to-end logistics capabilities,” Moody’s said.

Alibaba Has Worst Day In A Year On SEC Accounting Probe

Alibaba ( BABA ) disclosed Wednesday that the Securities and Exchange Commission has been probing whether its accounting into its Singles Day e-commerce event and various consolidation practices violate U.S. securities laws. Shares of the e-commerce giant fell 8.1% to 74.55 in late afternoon trading on the stock market today , diving below the 50-day moving average where Alibaba had found support in recent days. Alibaba, which hasn’t closed below the 50-day line since March 1, is now threatening to undercut its 200-day line. Alibaba is on track to have its worst one-day percentage loss since Jan. 29, 2015, when shares tumbled 8.8%. IBD’s Take: How healthy is Alibaba’s stock, and how does it compare vs. key rivals such as Amazon? Find out at IBD Stock Checkup Alibaba reported the SEC probe in an SEC filing. Here is the key passage. “Earlier this year, the U.S. Securities and Exchange Commission, or SEC, informed us that it was initiating an investigation into whether there have been any violations of the federal securities laws. The SEC has requested that we voluntarily provide it with documents and information relating to, among other things: our consolidation policies and practices (including our accounting for Cainiao Network as an equity method investee), our policies and practices applicable to related party transactions in general, and our reporting of operating data from Singles Day. We are voluntarily disclosing this SEC request for information and cooperating with the SEC and, through our legal counsel, have been providing the SEC with requested documents and information. The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.” Singles Day — Nov. 11 — has become the world’s largest e-commerce event, far above Cyber Monday or the new Amazon ( AMZN ) Prime Day last year. Alibaba had $13.7 billion in sales in last year’s event, with JD.com ( JD ) and other Chinese retailers also taking part. JD stock fell 3.8% intraday, perhaps in sympathy with Alibaba. 020 Fuels China Internets Separately, Alibaba, Baidu ( BIDU ), Tencent ( TCEHY ) and other Chinese Internet companies should should see continued strong growth in online-to-offline spending, Moody’s says. Moody’s sees Baidu, Alibaba and Tencent, sometimes referred to as “BAT,” should deliver 15%-30% revenue growth over the next  12-18 months, partly due to O2O efforts that have increased customer engagement and monetization. Alibaba, Baidu and Tencent have spent billions of dollars on O2O-related initiatives in recent years. “For all three companies, we expect that their investments will remain high, as they establish or acquire end-to-end logistics capabilities,” Moody’s said.

Apple, Tesla Self-Driving Cars May Kill Off Consumer Auto Insurance

If Apple ( AAPL ), Tesla Motors ( TSLA ), Alphabet ‘s ( GOOGL ) Google and others succeed in making self-driving cars prevalent by 2040 and ride-hailing startups Uber and Lyft prosper, auto insurance may no longer be needed by many U.S. consumers, says S&P Global Market Intelligence. S&P released five reports this week analyzing the push into self-driving electric cars by Google, Tesla, China’s Baidu ( BIDU ) and others. While the business models of traditional automakers such as General Motors ( GM ) and Ford ( F ) will undergo big changes, the impact of self-driving cars on the $137 billion auto insurance industry and companies like Allstate ( ALL ) could be monumental, says S&P. “The advent of a totally driverless car threatens the core auto insurance liability business model,” said one S&P report. “A shift to driverless cars would theoretically shift the legal liability away from the driver, since the incidence of crashes would likely be reduced, and the liability in a crash would shift from human error to product liability, potentially reducing or removing the need for auto liability insurance.” Here are five other takeaways from S&P’s deep dive into self-driving cars and ride-sharing alliances.  Noting Apple’s $1 billion investment in China’s ride-hailing leader Didi Chuxing, which has an alliance with Lyft, S&P said ride-hailing apps may eventually summon autonomous cars. Uber, the leader in ride-sharing, is losing money, says S&P. Both Uber and Lyft face “competitive markets and issues related to how to classify their drivers and operate within federal laws and local rules.” While Apple has not officially announced plans, it seems to be gearing up in automotive technology. “Multiple hires made since the beginning of last year, including former Tesla employees, indicate an interest,” S&P said. “We also note substantial increases in R&D and capex over the past few years.” General Motors, which in early 2016 invested $500 million in Lyft, intends to integrate autonomous driving technology from Cruise Automation once it completes its planned $1 billion purchase of that company. Lyft drivers are a potential customer base for GM’s upcoming Bolt electric vehicle, says S&P. Radio service providers such as iHeart Communications, formerly Clear Channel, will likely face intensifying rivalries versus Sirius XM Radio ( SIRI ) and  Pandora Media ( P ), as well as Apple CarPlay and Google’s Android Auto. RELATED: Apple Gets Lift From China Ride-Hailing Service Investment Toyota Joins Apple, GM In Finding Ride-Hailing Partners Meet Uber’s Self-Driving Car, As Autonomous Race Heats Up .