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Shopify shares slid about 10% on Tuesday morning after the Canadian e-commerce company reported better-than-expected earnings for the fourth quarter but gave mixed guidance for the current period. Shopify's light first-quarter guidance overshadowed the earnings and revenue beat. The company said it expects free cash flow margin to be in the high single digits, below Wall Street's projected 13.6%. In a research note published Tuesday, Wedbush analysts highlighted that Shopify's guidance implies operating income "well below our estimates and consensus." The company's forecast implies adjusted operating income of $178 million, while consensus estimates are for $382 million, the analysts said.
Persons: Jeff Hoffmeister, Wedbush, Shopify Locations: Ottawa , Ontario, Canada
The new app has a familiar name: Shopify Fulfillment Network. With the new Shopify Fulfillment Network , merchants can sign up to use Flexport's services through Shopify's app. The newly named Shopify Fulfillment Network is not merchants' only option for fulfillment. Wong said the company had also indicated Flexport would not be the exclusive provider for Shopify Fulfillment Network. "They've definitely given themselves more choices than there were before when it was just Shopify Fulfillment Network or bust," he said.
Persons: Shopify, Tobi Lütke, Oppenheimer, Ken Wong, Wong, It's, Flexport, They've Organizations: Shopify Logistics, Business, Shopify, Flexport, Amazon Locations: Flexport, mlstone@protonmail.com
Hong Kong CNN —Shares in Alibaba sank as much as 7% in Hong Kong on Thursday, after the Chinese tech giant reported disappointing sales figures and announced it would suspend listings plans for two of its units. The news comes at a tough time for the tech giant. In December, the company reshuffled its top ranks after the stellar performance of a competitor caused a stir at Alibaba. The company’s announcement of a $25 billion share repurchase program, which it said demonstrated its confidence in its business and cash flow outlook, also failed to ignite interest among investors. Alibaba shares in New York closed 5.9% lower on Wednesday.
Persons: Joseph Tsai, , Alibaba, Jack Ma, PDD, Alicia Yap, Ma, , Laura Organizations: Hong Kong CNN —, Cainiao, Reuters, Refinitiv, ” Citi Locations: China, Hong Kong, Alibaba, New York
AdvertisementRussia has changed its longstanding missile strategy to one that could have worse effects for Ukraine's effort on the battlefield, experts say. During its full-scale invasion of Ukraine, Russia has used its guided missiles to knock out the heating and electrical systems Ukrainians need to get through the winter. A local resident takes a photo of a missile crater and debris of a private house ruined in the Russian missile attack in Kyiv, Ukraine, in December 2023. Related storiesThat involves targeting Ukraine's equipment, either at the manufacturing plants or while it is en route the front line. But Russia is increasing its missile production, and Ukraine says it desperately needs more air defense systems, as Russia tries to wear them down.
Persons: , I'm, Fabian Hoffmann, Hoffmann, it's, Ukraine Vitalii, Timothy Wright, Russia's Organizations: Service, AP, University of Oslo, Ukrainian Armed Forces, Getty, International Institute for Strategic Studies Locations: Russia, Ukraine, Ukrainian, Russian, Kyiv, Norway, Poland
Stringer | Bloomberg | Getty ImagesVessels transiting the Red Sea have faced attacks over the past several weeks from Yemen-based Houthis, prompting shipping companies to change routes, leading to a spike in freight rates. Alan Baer CEO of OL USAVessel-Operating Common Carriers (VOCC) are ocean carriers that own and operate vessels responsible for managing cargo and transporting them. Luis Boza/ | Nurphoto | Getty ImagesWhile the recent spikes in freight rates might not help shippers relive their glory days following the pandemic, they would substantially boost profitability. Brashier noted that both contracted rates for ocean carriers and spot market rates may rise further. Overall, container freight will still [find it] difficult to manage oversupply issue.
Persons: Stringer, Houthi, Alan Baer, Baer, Luis Boza, Nico Luman, Jefferies, Brashier, Daejin Lee Organizations: Bloomberg, Getty, Houthi, U.S, U.S . Central Command, USA, CNBC, Evergreen, Shipping, Logistics, Head, Research, Fertistream Locations: Suez, Egypt, Yemen, South Africa, Gibraltar, Maersk, Lisbon, Portugal, Asia
Ukraine's winter goal is disrupting Russia's logistics, a military spokesperson said. The aim is to make Russian forces "hungry, cold, and have no desire to fight." AdvertisementThe main goal for Ukraine's military over the winter months will be disrupting Russia's military logistics so much that its troops are left with no will to fight. He said Ukraine's "main task" over the winter will be to disrupt Russia's logistics "so that they are hungry, cold, and have no desire to fight." Russia's troops can be stuck "outside, getting wet and cold" and targeted strikes by Ukriane could degrade Russian logistics, Watling said.
Persons: , Volodymyr Fitio, Fitio, Dr Jack Watling, Watling Organizations: Service, Ground Forces Command, Kyiv Post, Royal United Services Institute Locations: Russia, Ukraine, Kyiv
London CNN —Alibaba has called off plans to spin off its cloud computing arm, saying recent tightening of US controls on chip exports to China has created “uncertainties” for the division’s prospects. “We will focus on developing a sustainable growth model for Cloud Intelligence Group under the fluid circumstances,” the company said. And days after the announcement of the latest US chip restrictions, Beijing unveiled plans to restrict exports of graphite, a mineral required to make batteries for electric vehicles. Alibaba’s revenues for the June-to-September quarter climbed 9% on the previous year to 224.8 billion renminbi ($31 billion). Net profit was 26.7 billion renminbi ($3.7 billion), compared with a net loss previously, due to an increase in the value of the group’s equity investments.
Persons: London CNN — Alibaba, Xi Jinping, Joe Biden, BABA, , Xi, ” Biden, Biden, Tim Cook, Tesla, Elon, ” Xi, Jack Ma Organizations: London CNN, Cloud Intelligence Group, Alibaba’s, Biden Wednesday, San, Apple Locations: China, United States, Beijing, San Francisco, Hong Kong
London CNN —Alibaba has dropped plans to spin off its cloud computing arm, sending its stock tumbling, because of US controls on chip exports to China which the company said had created “uncertainties” for the division’s prospects. “We will focus on developing a sustainable growth model for Cloud Intelligence Group under the fluid circumstances,” the company said. During talks with Biden Wednesday, Xi described the restrictions as “technological containment,” according to a senior US official. Biden said in response that the United States is not going to provide technology to China that could be used against it by the Chinese military. Alibaba’s revenues for the June-to-September quarter climbed 9% on the previous year to 224.8 billion renminbi ($31 billion).
Persons: London CNN — Alibaba, Xi Jinping, Joe Biden, BABA, , Xi, Biden, Tim Cook, Tesla, Elon, ” Xi, Jack Ma Organizations: London CNN, Cloud Intelligence Group, Biden Wednesday, US, San, Apple Locations: China, London, Hong Kong, United States, Beijing, San Francisco
Buy With Prime, which launched in 2022, gives retailers who are not Amazon merchants fulfillment and delivery through its logistics network. Its newest features aim to pull in fee revenue from shops outside of Amazon.com during the peak holiday season. Along with speedy deliveries, Prime shoppers can now return items purchased through Buy With Prime outside of Amazon.com without shipping labels and boxes. Amazon also announced that Prime customers who buy from Buy With Prime merchants can now see their order history on their apps and have 24-hour access to customer service representatives. Amazon last week launched a Shopify app for Buy With Prime, giving the Canadian e-commerce giant's 2 million merchants access to Amazon's 175 million Prime members.
Persons: Brendan McDermid, Peter Larsen, Arriana McLymore, Stephen Coates Organizations: REUTERS, Amazon.com, National Retail Federation, Amazon, Thomson Locations: Staten Island , New York, U.S, New York City
watch nowThe global shipping industry has been mired in a freight recession this year and the challenging economic conditions will continue into 2024, according to a new CNBC Supply Chain Survey. The CNBC Supply Chain Survey was conducted October 21-October 31 among logistics executives who manage freight manufacturing orders and transportation, including those at C.H. "Without more freight moving, 2024, and potentially 2025, will continue to see soft pricing as capacity outstrips demand," he said. Freight trucking will remain soft Trucking companies get paid per load, and low expectations for orders imply potentially lower revenue this holiday season. A slightly better second half 2024 outlook The survey shows expectations for a slight turnaround in freight volume in the second half of 2024.
Persons: Robinson, Kuehne, Nagel, Zhang Jingang, Alan Baer, Noah Hoffman, Jeff Bezos, Uber, Tim Robertson, Robertson, Brian Bourke Organizations: CNBC Supply Chain Survey, CNBC, Chain Survey, SEKO Logistics, DHL Global, USA, ITS Logistics, Getty, Logistics, C.H, Surface Transportation, Convoy, Tank Transport Locations: Qingdao, Shandong province, China
Photographer: Christopher Dilts/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty ImagesAs holiday shopping season begins, lack of big orders from retailers is the rule amid fears that consumer spending will be weak, according to a new CNBC Supply Chain Survey. At the CNBC Evolve Global Summit last Thursday, Target CEO Brian Cornell said the company is doubling down on its cautious outlook for the holiday season. The CNBC Supply Chain Survey was conducted October 21-October 31 among logistics executives who manage freight manufacturing orders and transportation, including those at C.H. Lunar New Year and order volumes The CNBC Supply Chain Survey underscores an overall climate of uncertainty that is defining the market right now. The freight trucking recession Trucking companies get paid per load, and the low expectations for orders imply potentially lower revenue this holiday season.
Persons: Christopher Dilts, Robinson, Noah Hoffman, Hoffman, Jeremy Barnum, Brian Cornell, Raj Subramaniam, restocking, Kuehne, Nagel, Paul Brashier, Tim Robertson, Robertson, Brian Bourke, Elmer Buchta, Jeff Bezos, Uber, Brashier, Berkshire Hathaway, Alan Baer Organizations: Bloomberg, Getty Images Bloomberg, Getty, CNBC Supply Chain Survey, North American Surface Transportation, CNBC, Global, FedEx, Chain Survey, SEKO Logistics, USA, ITS Logistics, Amazon, Maersk, Logistics, Convoy, Tank Transport, U.S ., Union Pacific, BNSF, Norfolk Southern, CSX Locations: Chicago , Illinois, C.H, U.S, China, United States, Montana, Indiana, Panama, West Coast, U.S . West Coast, Los Angeles, Berkshire, West, East Coast
PANAMA CITY, PANAMA - SEPTEMBER 22: The container ship Maersk Bogor is guided by a tugboat as it prepares to enter the Miraflores locks while transiting the Panama Canal on September 22, 2023 in Panama City, Panama. The Panama Canal Authority is continuing to restrict the number of vessels that pass through the Panama Canal locks as drought has caused water levels at Gatun Lake to drop. Over one hundred ships are waiting to transit the canal and the backup could delay goods heading to the United States for the holiday season. The Panama Canal is popular for East Coast trade because it is faster than other options. Traveling through the Panama Canal takes only 35 days.
Persons: Justin Sullivan, Adil Ashiq, Alan Baer, Baer, Jon Davis, Davis, Ashiq, Paul Brashier Organizations: PANAMA CITY, The Panama Canal, Port, CNBC Supply Chain, Panama Canal Authority, East, Panama Canal, MarineTraffic, USA, CNBC, U.S, ITS Logistics Locations: PANAMA, Bogor, Miraflores, Panama, Panama City, The Panama, Colon, Caribbean, United States, Cape Horn, South America, East, Charleston, El Nino, East Coast, Shenzhen, China, Miami , Florida, Suez, North America, U.S, West Coast, Asia, Gulf
Gross merchandise volume, or the total volume of merchandise sold on the platform, rose 22% to $56.2 billion during the quarter. The solid earnings beat comes after Shopify, which makes tools for companies to sell products online, has sharpened its focus on costs. The sale included Deliverr, the last-mile delivery company Shopify acquired for $2.1 billion last May. During the quarter, Shopify announced a partnership with Amazon that allows its merchants fast and free Prime delivery on their storefronts off Amazon. Shopify also invested in online marketplace Faire as part of a deal that will make it the recommended wholesale platform for Shopify merchants.
Persons: Shopify, Gross, FactSet, Jeff Hoffmeister Organizations: Amazon
It also provides apps for merchants to sell directly on marketplaces like Amazon and Walmart, which are also building out AI additions for merchants. As part of the AI suite, Shopify launched AI app Sidekick, which helps sellers decide on inventory, promotions and marketing, lessening their dependence on third-party widgets. Analysts expect sales of Shopify's merchant products, which includes Shopify Magic, to increase 21% to $1.2 billion compared to last year, the first deceleration in four quarters. Shopify Magic is part of the company's long-term strategy to gain more merchants on its platform that will pay higher prices for its services. Shopify's subscriptions include Shopify Magic at no additional charge.
Persons: Chris Wattie, Jeff Hoffmeister, Shopify, Michael Morton, Hunter, Harley Finkelstein, Angelo Zino, Zino, Arriana McLymore, Josie Kao Organizations: REUTERS, Walmart, CFRA, Thomson Locations: Ottawa , Ontario, Canada, LSEG, Ottawa, New York City
Former Deliverr and Shopify employees told Insider last week's layoffs at Flexport capped the end of a multiyear rollercoaster marked by multiple complicated acquisitions and integrations, compensation issues, and culture clashes. The integration of the Shopify Logistics team into Flexport had been rocky, five employees said. When Shopify completed its acquisition of Deliverr in July 2022, employees' equity converted to Shopify stock on a one-to-one basis. This person added that the conversion from public stock to RSUs meant that the value of their Flexport equity was less than they expected. The structure allows Shopify employees to decide the percentage of their compensation they want to be made up of cash and how much of stock.
Persons: Flexport, Shopify, vesting, Severance, Ryan Petersen, Constant, Dave Clark, Petersen, Clark, Madeline Stone Organizations: Flexport, Shopify Logistics, Deliverr, Employees, US, Shopify Locations: Flexport's, Shopify, Deliverr, Flexport, reorgs, Amazon, mstone@insider.com
HONG KONG, Oct 6 (Reuters Breakingviews) - It’s getting harder for China Inc to go global, and tougher for global financial advisors to take on the rapidly shrinking pool of related mandates. Belgium’s intelligence service VSSE said on Thursday that it is trying to “detect and fight against possible spying and/or interference activities carried out by Chinese entities including Alibaba”. Fellow courier SF Holding is also preparing a Hong Kong listing to raise as much as $3 billion to support, among other things, ambitious expansion beyond Asia. Alibaba signed an agreement with the Belgium government in 2018 to open an e-commerce trade hub, run by its logistics arm Cainiao Smart Logistics Network. The Chinese e-commerce giant last month filed to list Cainiao on the Hong Kong stock exchange.
Persons: VSSE, Cainiao, won’t, Alibaba, Una Galani, Thomas Shum Organizations: Reuters, China Inc, HK, Belgian, Justice, Citigroup, JPMorgan, Hong, European, Liege Airport, Smart Logistics Network, Alibaba’s, Thomson Locations: HONG KONG, China, Hong Kong, Liege, Belgian, Asia, Belgium, United States, European, Alibaba’s New York
HONG KONG, Oct 6 (Reuters Breakingviews) - It’s getting harder for China Inc to go global, and tougher for global financial advisors to take on the rapidly shrinking pool of related mandates. Belgium’s intelligence service VSSE said on Thursday that it is trying to “detect and fight against possible spying and/or interference activities carried out by Chinese entities including Alibaba”. Fellow courier SF Holding is also preparing a Hong Kong listing to raise as much as $3 billion to support, among other things, ambitious expansion beyond Asia. Alibaba signed an agreement with the Belgium government in 2018 to open an e-commerce trade hub, run by its logistics arm Cainiao Smart Logistics Network. The Chinese e-commerce giant last month filed to list Cainiao on the Hong Kong stock exchange.
Persons: VSSE, Cainiao, won’t, Alibaba, Una Galani, Thomas Shum Organizations: Reuters, China Inc, HK, Belgian, Justice, Citigroup, JPMorgan, Hong, European, Liege Airport, Smart Logistics Network, Alibaba’s, Thomson Locations: HONG KONG, China, Hong Kong, Liege, Belgian, Asia, Belgium, United States, European, Alibaba’s New York
Veteran emerging markets investor Mark Mobius has named Alibaba and Tencent as key stocks in any portfolio investing in developing economies. Mobius said the Chinese technology giants "could be the foundation of any portfolio" despite recent volatility. Mobius is known for his long-term conviction picks of smaller companies, but stressed the resilience of the two Chinese tech titans. The fund manager said he likes the agility and profitability of smaller tech companies in the region but acknowledged geopolitical risks. So these companies are really very interesting companies," Mobius added.
Persons: Mark Mobius, Mobius, Alibaba, BABA, Franklin Templeton, they're, CNBC's, James Lee, Mizuho, It's Organizations: NYSE, Mobius Capital Partners, Hong, Investment, Mizuho Securities, Franklin, Taiwan Semi, Nvidia, AMD, Fund, Zilltek Technology Locations: Hong Kong, China, Taiwan, Beijing, TSMC, California
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCainiao listing signals the end of China's regulatory crackdown, says portfolio managerWilliam Ma of GROW Investment Group explains why Alibaba's listing of Cainiao, its logistics unit, will be a 'catalyst' for the broader market.
Persons: William Ma
CNBC Daily Open: Thinking about tech
  + stars: | 2023-09-27 | by ( Clement Tan | ) www.cnbc.com   time to read: +4 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Alibaba unit IPO Alibaba plans to list its logistics unit Cainiao in Hong Kong, the Chinese e-commerce giant said in a regulatory filing on Tuesday. It's the first to announce listing plans among the six business units as a result of one of the most radical shake-ups in Alibaba's history . The company split its structure into six business units, and hopes most of them will be able to raise outside funds and go public.
Persons: Rene Haas, It's, Dimon, — Dimon, it's, Jerome Powell, Jamie Dimon, Neel Kashkari, Herman Narula, Narula, Alibaba Organizations: Arm, Nasdaq, CNBC, TV18, Dow Jones, Dow, Financial, Treasury, Federal, JPMorgan Chase, Minneapolis Federal, Tech Locations: New York City, Hong Kong, Ukraine, America, China, India, U.S, Minneapolis
CNBC Daily Open: Is tech the gift that keeps on giving?
  + stars: | 2023-09-27 | by ( Clement Tan | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. "I am not sure if the world is prepared for 7%," he told The Times of India in an interview. Leaders from the Writers Guild of America voted unanimously to end the strike on Wednesday. Under the agreement, AI cannot write or rewrite literary material and AI-generated material will not be considered source material.
Persons: Korea's Kospi, Jamie Dimon, Neel Kashkari, It's, Kamil Dimmich Organizations: CNBC, Nikkei, Dow Jones, JPMorgan Chase, Minneapolis Federal, Fed, Hollywood, Writers Guild of America, Writers, International Monetary Fund Locations: Asia, China, U.S, India, Hong Kong, Guyana, South America, it's
[1/2] People visit the booth of Alibaba's logistics unit Cainiao at the 2021 China International Fair for Trade in Services (CIFTIS) in Beijing, China September 3, 2021. REUTERS/Florence Lo Acquire Licensing RightsSept 26 (Reuters) - Alibaba Group (9988.HK) on Tuesday kicked off its restructuring with a plan to list its logistics arm Cainiao in Hong Kong that would make the unit the first to be separated since the Chinese e-commerce giant announced its break-up six months ago. U.S.-listed shares of Alibaba pared early premarket trading losses following Tuesday's announcement and were down 0.4% at $86.86 by 1037 GMT. Alibaba in late March announced its biggest restructuring in its 24-year history. In the months since, the company has approved a process to start external financing for its international commerce arm and was also looking to list its cloud unit.
Persons: Florence Lo, Alibaba, Cainiao, Dealmakers, Jack Ma, Daniel Zhang, Brenda Goh, Ayushman, Varun, Barbara Lewis Organizations: Fair for Trade, Services, REUTERS, Alibaba, HK, Tuesday, Smart Logistics Network, Reuters, Intime, Thomson Locations: Beijing, China, Hong Kong, Cainiao, Hong Kong . U.S
Alibaba plans to list its logistics unit Cainiao on the Hong Kong Stock Exchange, the Chinese e-commerce giant said in a regulatory filing on Tuesday. Alibaba said the Hong Kong Stock Exchange has confirmed that the Cainiao listing may go ahead. Founded in 2013, Cainiao is a logistics network that helps Alibaba fulfil deliveries placed on its e-commerce platforms both in China and abroad. Delivery speed is a point of competition among Chinese e-commerce firms. As well as Cainiao, Alibaba is also looking to list its cloud computing business, though it has not officially filed for a spinoff.
Persons: Alibaba, Cainiao, JD.com, Daniel Zhang, Eddie Wu, Zhang, Wu Organizations: Artificial Intelligence, Hong Kong Stock Exchange Locations: Shanghai, Cainiao, China
Alibaba Will Spin off Its Logistics Arm Cainiao in an IPO in Hong KongChinese e-commerce company Alibaba says it will spin off its logistics arm, Cainiao Smart Logistics Network, in an initial public offering in Hong Kong
Persons: Alibaba Organizations: Cainiao Smart Logistics Network Locations: Hong Kong Chinese, Hong Kong
London CNN —Alibaba said Tuesday that it would spin off Cainiao, its logistics arm, in what will be the conglomerate’s first initial public offering since it announced a sweeping revamp of its business earlier this year. Cainiao will remain a subsidiary of Alibaba. Founded in 2013, Cainiao operates a global logistics network and provides delivery services for Alibaba and other firms. Alibaba is now beginning to follow through with the most ambitious restructuring in its 24-year history, under new leadership. Cainiao’s listing could provide a much-needed boost to Hong Kong’s beleaguered IPO market.
Persons: London CNN — Alibaba, Cainiao, Alibaba, Eddie Wu, Perris Lee Organizations: London CNN, Alibaba, Cainiao Smart Logistics Network, Hong Kong Stock Exchange, CNN Locations: Hong, Hong Kong, Dealogic
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