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Apple Invests $1 Billion In Uber’s China Rival Didi Chuxing

Apple ( AAPL ) will invest $1 billion in Uber’s China ride-hailing rival Didi Chuxing, backed by Chinese Internet giants Alibaba ( BABA ) and Tencent ( TCEHY ). Apple CEO Tim Cook told Reuters  the move will help it better understand the Chinese market. “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he said. Didi Chuxing, formerly known as Didi Kuaidi, is the dominant ride-hailing service in China, operating in more than 400 cities. Didi Chuxing said Apple’s $1 billion stake is its largest investment ever. Uber also is expanding heavily in China, teaming up with Baidu ( BIDU ), the third member of the Baidu-Alibaba-Tencent trio of Chinese Internet giants. Didi also has alliances with U.S.-based Lyft, India’s Ola and SE Asia’s Grab. The effort also could help develop an Apple Car. Apple has never confirmed plans to build an electric vehicle with some autonomous elements, but has hired dozens of automotive engineers for “Project Titan.” Currently, Apple’s public auto efforts are focused on CarPlay, an infotainment service linked to the iPhone. Cook said: “That is what we do today in the car business, so we will have to see what the future holds,” he said. Apple shares closed 2.35% to 90.34 on the stock market today, hitting its lowest levels since June 2014. Apple also lost its crown as the most valuable company to Google parent Alphabet ( GOOGL ).

NetEase, Sina, Weibo Ready For China Earnings Closeup

Continuing a string of earnings reports from China Internet companies, NetEase ( NTES ), Sina ( SINA ) and Weibo ( WB ) are set to report first-quarter earnings after the close Wednesday. JD.com ( JD ), one of China’s largest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among many U.S.-traded techs that fell Monday after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, reported revenue of $8.4 billion, slightly above the consensus and up 48% in local currency year over year. But its Q2 guidance was slightly below consensus. China e-commerce giant Alibaba ( BABA ) reported fiscal Q4 earnings  last Thursday. Alibaba showed a 30% increase in revenue to $3.75 billion, beating the Wall Street consensus and marking the company’s highest growth rate in the past four quarters. China gaming company NetEase is expected to see earnings rise 55% in local currency to $2.29 a share, according to a poll by Thomson Reuters. Revenue is expected to jump 115% to $1.2 billion, year over year. NetEase stock, which is down 26% this year, was trading near 143.60, up 3%, during afternoon trading in the stock market today . NetEase is hitting resistance at its 50-day line Sina, which operates the largest Chinese-language Web portal, is expected to post a loss of 4 cents a share, swinging from a 4 cent profit year over year. Revenue is expected to rise 5% in local currency to $277.5 million. Sina stock, which hit a low this year of 39.58 on Feb. 11, was trading near 49.50, up 1%. Weibo, which operates a microblog site similar to Twitter ( TWTR ), is projected to show an 18% increase in revenue to $113.6 million. Weibo is projected to see earnings of one penny a share, vs. nearly break-even a year earlier. Weibo was a part of Sina before its IPO in 2014, and Sina remains a majority shareholder. Weibo this year hit a low of 12.09 on Feb. 21. Weibo stock was near 23.25, up 8%.

Next Yahoo Bidding Round Due ‘Around June’; Verizon, Others In Mix

Yahoo ( YHOO ) CEO Marissa Mayer is center stage as the Web portal moves toward a second bidding round, with Verizon Communications ( VZ ) and others in the mix, says a report from online tech news site Recode. The second round of bidding is expected “around June,” says the Recode report. Mayer remains in charge of a likely Yahoo sale after the Internet firm added four new independent directors to its board under pressure by activist investor Starboard Value. While Verizon, which acquired AOL last year for $4.4 billion, has been viewed as the front-runner, private equity firms TPG and a combination of Bain Capital and Vista Equity Partners will also be involved in the next round, says Recode. Earlier reports said Microsoft ( MSFT ) could provide some funding to a private equity firm to ensure that its relationships with Yahoo stays friendly. Microsoft tried to buy Yahoo in 2008. AOL Chief Executive Tim Armstrong reportedly is in charge of Verizon’s attempt to buy Yahoo. Mayer’s relationship with Armstrong , when they both worked at Alphabet’s Google, has been a topic of Internet media speculation. Mayer stands to get a $55 million payout if she’s forced out as CEO after Yahoo is sold, say reports. Yahoo stock was flat in afternoon trading in the stock market today , near 37. Yahoo’s market cap is near $35 billion, but the great majority of its value is its 15% stake in China e-com giant Alibaba ( BABA ), as well as its stake in Yahoo Japan. Analysts in general expect bids in the $5 billion to $8 billion range for Yahoo’s core business.