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☆ Stocks making the biggest moves before the bell: Paramount, PacWest, Shopify & more
▼ + stars: | 2023-05-04 | by ( Peter Schacknow | ) www.cnbc.com time to read: +2 min

Check out the companies making headlines in premarket trading. PacWest Bancorp – PacWest tumbled 37% in premarket trading after the banking company said it was considering various strategic options. Shopify – The e-commerce platform reported-better-than expected quarterly results and also announced the sale of parts of its fulfillment operation as well as its logistics division. Qualcomm – Qualcomm slumped 7.7% in premarket trading after the chipmaker issued a weaker than expected current quarter forecast, hurt by sagging smartphone sales. Qualcomm did report better than expected revenue for its latest quarter, with earnings matching Wall Street estimates.

☆ Shopify offloads logistics business to Flexport
▼ + stars: | 2023-05-04 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +3 min

Shopify is selling its logistics unit to supply chain technology company Flexport, the companies announced Thursday. The sale marks a reversal for Shopify, which had spent years building out its own logistics and order-fulfillment operations. Shopify and Flexport are deepening their alliance as Shopify seeks to compete with e-commerce rivals such as Amazon and Walmart . Clark said in an interview that the acquisition will allow Flexport to scale the shipping capabilities it can offer for Shopify merchants, and other online businesses. Shopify will also retain its Shopify Fulfillment Network app where merchants manage their logistics process.

☆ Shopify offloads its logistics baggage
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

TORONTO, May 4 (Reuters Breakingviews) - Shopify (SHOP.TO) is finding that simpler is better after all. Investors welcomed the move: Shares of the company led by Tobias Lütke shot up over 20% in morning trade. Shopify wanted to build out its own logistics business, and now it's leaving that job to Flexport instead. That said, Shopify already uses partnerships with other companies to expand in hard-to-crack areas like fintech, including with payments giant Stripe and buy-now-pay-later company Affirm (AFRM.O). Although Shopify said on Thursday that first-quarter revenue rose 25% year-on-year, beating analyst expectations, Shopify's small-business customers are under pressure from rising interest rates.

Shopify announced Thursday that it is cutting 20% of staff and selling off its logistics business. Shopify's CEO Tobi Lütke announced early Thursday that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport. It's the right thing for Shopify but it negatively affects many team members who we admire and love working with. Analysts and insiders had also been expecting a major change to Shopify's logistics division, Insider reported Wednesday. But 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to UK grocery firm Ocado for an undisclosed sum.

☆ Shopify cuts 20% of its workforce; shares surge on earnings beat
▼ + stars: | 2023-05-04 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Shopify on Thursday announced it's cutting 20% of its workforce. The news came as it reported first-quarter earnings that beat analyst estimates on both the top and bottom lines. CEO Tobi Lütke announced the job cuts in a memo to employees posted to the company's website. The cuts mark the second round of layoffs for the Canadian e-commerce company. The company reported revenue of $1.51 billion, which exceeded projections of $1.43 billion, according to Refinitiv.

☆ Shopify president says he has never 'felt more sure about the future of this company' in leaked internal audio shared after company conducts layoffs and sells its logistics business
▼ + stars: | 2023-05-04 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

In a two-minute video shared with Shopify employees Thursday morning, company president Harley Finkelstein reiterated his belief that the e-commerce firm is well-positioned for the future. In his video message to employees, Finkelstein said that difficult times are what define "the character of a company." "Making a series of popular decisions makes a popular company," he said. 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to the UK grocery firm Ocado for an undisclosed sum. Making a series of popular decisions makes a popular company.

☆ Shopify CEO Harley Finkelstein goes one-on-one with Jim Cramer after announcing massive layoff
▼ + stars: | 2023-05-04 | by ( Jim Cramer | ) www.cnbc.com time to read: 1 min

Shopify CEO Harley Finkelstein goes one-on-one with Jim Cramer after announcing massive layoffShopify CEO Harley Finkelstein joins 'Mad Money' host Jim Cramer after announcing Shopify will layoff 20% of its staff and spin off its logistics business to Flexport.

☆ 10 Things in Tech: Uber wants to predict your habits, Apple and Google team up, and Lebron James eyes Complex Networks
▼ + stars: | 2023-05-04 | by ( Diamond Naga Siu | ) www.businessinsider.com time to read: +4 min

And minting it could be a solution to avert a major economic catastrophe (here's an explanation of the looming disaster, by the way). This average-looking coin could prevent job losses, steep cuts to retirement savings, and other major financial blows. Shopify employees and experts brace for shakeup. Multiple sources told Insider that his company, SpringHill Co., has internally discussed offering around $100 million to buy Complex from Buzzfeed. Google tells employees to limit publishing AI research.

☆ Shopify tried to challenge Amazon in logistics. It never came within 100 miles. Was it all a waste?
▼ + stars: | 2023-05-04 | by ( Emma Cosgrove | Madeline Stone | ) www.businessinsider.com time to read: +7 min

Shopify is selling most of its logistics business to freight unicorn Flexport in an all stock deal. Though Shopify's logistics journey began in 2019 as Shopify Fulfillment Network, the current iteration is less than a year old, and investors had become wary of the level of investment that getting the outfit into competitive shape would take. The acquisition was previously considered key to Shopify's fulfillment ambitions, and its team has been involved in the company's efforts to develop fulfillment software. Derek Lossing, an Amazon Logistics alum-turned investment advisor with Cirrus Global Advisors, said an acquisition-driven strategy may have been the right course — especially when the alternative involved contracting with legacy logistics players, which can take months. To some, the question of whether Shopify's layover into logistics was a waste of talent, time, and resources, can't be answered until Flexport takes hold and Clark flexes the muscles he gained building Amazon Logistics.

☆ Shopify insiders and analysts are bracing for a strategy shift in the company's logistics business
▼ + stars: | 2023-05-03 | by ( Madeline Stone | Emma Cosgrove | ) www.businessinsider.com time to read: +6 min

Insiders and analysts expect a major shakeup to Shopify's logistics strategy. "The fulfillment investment is sort of the biggest anchor that's keeping the business from being more profitable." That may be a welcome change for investors, who have been voicing increasing concern with the level of investment Shopify had planned. And Shopify Logistics CEO Aaron Brown told Insider in February that 6 River Systems' warehouse automation would be "the machine in the background making everything work." Weiss then asked if Shopify Logistics is intended to turn a profit.

☆ Where the trucking and rail recession is showing up in the economic data
▼ + stars: | 2023-04-28 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +6 min

The decrease negatively impacts earnings for both trucking and rail where revenue is generated by moving freight. Ocean freight orders are a leading indicator of train and trucking earnings since 90% of the world's trade moves by water. This is one of three key supply chain charts that are signaling more financial potholes for trucking and rail companies. West Coast ports have been losing trade to both the East Coast ports and Gulf ports as a result of prolonged labor negotiations, though union representatives indicated last week a "tentative agreement" had been reached, but no details were provided. Trucking is needed for both container pick up at the ocean terminals and rail ramps.

☆ Amazon is spending less on warehouses — and more on AI and its cloud business
▼ + stars: | 2023-04-27 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

Amazon signaled its commitment to AI investment amid a surge of interest in the technology. Amazon plans to build "the world's best personal assistant," CEO Andy Jassy told analysts Thursday. "And we are adding more dollars for large language models and generative AI." Amazon CEO Andy Jassy echoed the company's commitment to AI, saying the e-commerce giant would be among the few companies to prioritize developing large language models, the technology behind generative AI tools like chatbots. "If you look at the really significant leading large language models, they take many years to build, and many billions of dollars to build," he told analysts Thursday.

☆ Amazon to expand office supplies business after pandemic sales boost in Europe
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

LONDON, April 20 (Reuters) - Amazon plans to expand its business selling office supplies in Europe and internationally after the pandemic helped boost sales as companies shopped more online and looked for bulk discounts. Amazon Business' gross sales in Europe grew at a compound annual rate of 25% from 2020 to 2022, vice president Alexandre Gagnon said in an interview. In Europe, the business launched first in Germany in 2016, then Britain in the following year, followed by Italy, Spain and France in 2018. "Because businesses buy in larger quantities, the fulfilment economics are more advantageous," Gagnon said, adding that Amazon gives companies discounts for bulk orders. Amazon Business clients in the region include Siemens Gamesa, Centrica, and ABB, the company said.

☆ Inflation's inventory gluts are here to stay and will hit the bottom line in weaker economy: CNBC Supply Chain Survey
▼ + stars: | 2023-04-05 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +6 min

But uncertainty about inventory management is significant, with almost one-quarter (23%) of supply chain managers saying they are not sure when gluts will be worked off. The supply chain pressures will be among the factors that weigh on quarterly numbers. Manufacturing orders and the economic outlook Recent data on manufacturing has shown a deterioration in the economy, with the ISM Manufacturing index in contraction level based on March data released this week. "This survey confirms that we remain in an era of serious supply chain cost-to-serve challenges," Baxa said. FreightWaves and ITS Logistics are CNBC Supply Chain Heat Map data providers.

In a filing on Thurday, JD.com said it would continue to hold a stake of more than 50% in the units, JD Industrials and JD Property, upon completion of the proposed spin-off. JD.com said the size and structure of its units' initial public offerings had not yet been finalised. Two sources with knowledge of the floats said the two JD units are seeking to raise $1 billion each in the IPO. In their listing prospectuses filed later on Thursday, JD Industrials and JD Property disclosed annual revenues of 14.1 billion yuan ($2.05 billion) and 2.3 billion yuan, respectively. UBS and Citic Securities are the financial advisers for JD Industrials, while UBS is the financial adviser for JD Property.

☆ Warehouses Find Insulation From U.S. Banking Crisis
▼ + stars: | 2023-03-30 | by ( Liz Young | ) www.wsj.com time to read: 1 min

An Amazon distribution center under construction in Detroit in 2021, when the company was in the midst of a rapid expansion of its logistics network. Industrial real-estate executives expect only limited fallout from the turmoil that has engulfed the U.S. banking sector, even as warehouse developers grapple with the rising interest rates and weakening demand that are dampening construction following a period of historic growth. “The availability of credit might likely be diminished in the short term as banks will begin to be more stringent on underwriting,” said Craig Meyer , president of industrial for the Americas at real-estate services firm JLL . He said he expects new projects this year will “be down as a result of some of these couple of financial issues, the increasing cost of capital and then the availability of capital.”

☆ China's JD.com to spin off industrial, property units in Hong Kong float
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 30 (Reuters) - Chinese e-commerce firm JD.com Inc (9618.HK) said on Thursday it planned to spin off its property and industrial units and list them on the Hong Kong Stock Exchange. Upon completion of the proposed spin off of JD Industrials and JD Property, JD.com said it would continue to indirectly hold more than 50% of the shares in both the units, which will remain as subsidiaries of the company. The size and structure of JD.com units' initial public offerings have not yet been finalised. The e-commerce firm, which missed fourth-quarter revenue forecasts, said earlier this month that rebuilding consumer confidence would take time after the lifting of strict pandemic-related curbs late last year. Reporting by Twinnie Siu in Hong Kong and Tiyashi Datta in Bengaluru; Editing by Sharon Singleton and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Ukraine war live updates: Russia extends grain export deal for 60 days; Bakhmut fighting 'hard' and 'very painful,' Kyiv says
▼ + stars: | 2023-03-14 | by ( Holly Ellyatt | ) www.cnbc.com time to read: +2 min

A vital grain export deal between Ukraine and Russia has been extended for 60 days, according to Russia's deputy foreign minister, who was quoted by a Russian news agency. The deal, known officially as the Black Sea Grain Initiative, has facilitated the export of agricultural products, such as wheat, corn and sunflower oil, from Ukraine via the Black Sea. Early on in the war a blockade on such exports contributed to global food shortages and rising prices. The grain initiative, brokered by Turkey and the United Nations last July, has enabled millions of tons of agricultural products to be exported from Ukraine, alleviating shortages elsewhere. Moscow has complained that international sanctions on its logistics, insurance and payments industries have continued to impede its own agricultural exports of grain and fertilizers.

☆ Lowe’s Opens Warehouses to Stow Goods to Improve Seasonal Distribution Efficiency
▼ + stars: | 2023-03-08 | by ( Liz Young | ) www.wsj.com time to read: +3 min

Lowe’s Cos. is opening more warehouses that will serve as storage facilities for offseason goods, a strategy the home-improvement retailer says will help it more efficiently distribute its inventory. The facilities are part of a broader $1.7 billion investment Lowe’s has been making in its supply chain to fill online orders faster. That has included adding e-commerce fulfillment centers to its network that pick and pack orders for delivery to customers’ homes. The company now has more than 100 logistics facilities. Lowe’s reported comparable sales, those from stores and digital channels operating for at least 12 months, fell 1.5% in the fourth quarter.

☆ ArcBest Rolls Out Technology to Speed Up Freight Loading
▼ + stars: | 2023-03-01 | by ( Liz Young | ) www.wsj.com time to read: +5 min

The freight-management system, called Vaux, is a steel-and-aluminum racking system that sits underneath and around cargo inside trailer beds. Warehouse workers can latch a forklift onto the Vaux platform to push freight into a trailer or pull freight out in one move, instead of having to handle pallets individually. ArcBest says loading or unloading a truck using Vaux takes less than five minutes, compared with the traditional process the company says can take 45 minutes. “What our customers have been telling us is that they are really under pressure,” ArcBest Chief Executive Judy McReynolds said. Rival trucking company TFI International Inc. recently disclosed it had taken a 4% stake in ArcBest, prompting speculation TFI is looking to buy ArcBest.

☆ Amazon Expands Same-Day Delivery, With Fees, While Battling Slow Growth
▼ + stars: | 2023-02-26 | by ( Sebastian Herrera | ) www.wsj.com time to read: 1 min

Amazon.com is focusing on delivering packages in less than a day to shoppers who have more fast-delivery options than ever. Amazon .com Inc. is expanding ultrafast delivery options, a sign that it remains committed to pushing its logistics system for speed as it scales back plans in other areas. The tech giant is continuing to devote resources to facilities and services structured to deliver packages to customers in less than a day. The expansions are happening at a crucial point for Amazon, which faces competition for fast-delivery options while Chief Executive Officer Andy Jassy puts a renewed focus on profits.

☆ Target Investing $100 Million to Expand Next-Day Delivery
▼ + stars: | 2023-02-23 | by ( Liz Young | ) www.wsj.com time to read: +3 min

Target is one of several retailers using stores to fill orders to help manage inventory and the high costs of last-mile delivery. A Target worker loads packages for last-mile delivery at the retailer’s Minneapolis sortation center. Despite slowing growth, online orders make up a substantial portion of Target’s sales. The sortation centers are meant to relieve stores of the burden of sorting packages for final delivery, speeding shipments up in the process. The facilities handled 26 million packages last year, and Target expects that number to double this year.

☆ Abu Dhabi's ADNOC looks to raise up to $2 bln from IPO of gas unit
▼ + stars: | 2023-02-23 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +2 min

[1/3] An Emirati man is seen near the logo of ADNOC in Ruwais, United Arab Emirates May 14, 2018. REUTERS/Christopher PikeDUBAI, Feb 23 (Reuters) - State oil giant Abu Dhabi National Oil Co (ADNOC) said on Thursday it has set a price range for an initial public offering (IPO) of its gas unit that could raise up to $2 billion and give ADNOC Gas an equity valuation of $47 billion to $50.8 billion. ADNOC is selling roughly 3 billion shares in its gas business, equivalent to about 4% of its issued share capital. At the top of the range, ADNOC would raise roughly $2 billion from the sale, according to Reuters calculations. Over the past two years, ADNOC has listed petrochemicals company Borouge (BOROUGE.AD), fertilisers and clean ammonia products maker Fertiglobe (FERTIGLOBE.AD), and ADNOC Drilling (ADNOCDRILL.AD).

☆ ADNOC to float 4% of its gas business in IPO - statement
▼ + stars: | 2023-02-17 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +2 min

DUBAI, Feb 17 (Reuters) - ADNOC will sell 4% of it gas business in an initial public offering (IPO), according to a newspaper notice and an emailed statement on Friday. ADNOC holds a 95% stake in ADNOC Gas, and prior to the offering, it transferred 5% of the share capital of ADNOC GAS to Abu Dhabi National Energy Company. (TAQA.AD)Following the IPO, ADNOC is expected to own roughly 91% of ADNOC Gas. Should the deal go through, ADNOC Gas expects to target payments of dividends of $1.625 billion in the fourth quarter of this year for the first half of 2023, according to a ADNOC Gas intention to float document emailed on Friday. ADNOC Gas plans to offer a further $1.625 billion in the second quarter of 2024 for the second half of 2023.

☆ Abu Dhabi's ADNOC to float 4% of gas business - sources
▼ + stars: | 2023-02-16 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +1 min

DUBAI, Feb 16 (Reuters) - Abu Dhabi National Oil Company (ADNOC) plans to float 4% of its gas business in an initial public offering, two sources told Reuters on Thursday. The state oil giant made the decision on ADNOC Gas ahead of the official announcement of the IPO expected on Friday, said the sources, declining to be named as the matter is not public. Sources told Reuters last month that ADNOC was eyeing a valuation of at least $50 billion for its gas business, which would translate to proceeds from the IPO of roughly $2 billion, according to Reuters calculations. The company announced in November it was combining its gas processing arm and its liquefied natural gas (LNG) subsidiary into a single listed entity. Over the past two years, ADNOC has listed petrochemicals company Borouge (BOROUGE.AD), fertilisers and clean ammonia products maker Fertiglobe (FERTIGLOBE.AD), and ADNOC Drilling (ADNOCDRILL.AD).

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