Today’s Research Reports on Stocks to Watch: Amazon and Alibaba

NEW YORK, NY / ACESSWIRE / June 26, 2018 / Chinese tech stocks saw a drop in Monday trading on news that the trade war with China could get even worse. Among the decliners was Alibaba Group, JD.com and Tencent. Shares of Amazon also saw a dip in share price as the company announced that its nationwide rollout of Prime member discounts for Whole Foods would finish this week.

RDI Initiates Coverage on:

Amazon.com, Inc.
https://www.rdinvesting.com/report/?ticker=AMZN

Alibaba Group Holding Limited
https://www.rdinvesting.com/report/?ticker=BABA

Amazon.com, Inc. shares closed down 3.06% on about 7.1 million shares traded. There was no major news to explain the drop but the fact that the grocery industry watchdog, Grocery Code Adjudicator, may get the powers to oversee Amazon’s treatment to suppliers could have got the traders worried. In another news, Amazon’s facial recognition software, has come under fire from privacy advocates. Amazon’s Rekognition software works by comparing images provided by the customer to a database of images the customer has also provided. It searches for a match using the computing power of Amazon’s cloud computing network AWS. The city of Orlando was running a test on using this software but ended its test after the American Civil Liberties Union of Florida sent a letter to the city calling use of the software a potential invasion of residents’ privacy, free speech and due process rights. However, a joint statement issued Monday from the city of Orlando and the Orlando Police Department made clear the city isn’t backing down on using tech when it feels it is warranted. In some positive news, the e-commerce giant is expected to complete its nationwide rollout of Prime member discounts for Whole Foods this week on Wednesday. Amazon said in a statement that all Prime members will have a 10% discount off of hundreds of sale items as well as “deep discounts on select popular products.” Amazon Prime vice president, Cem Sibay, commented, “Customer feedback has been overwhelmingly positive – in fact, Prime members have adopted this benefit at one of the fastest rates we’ve seen. Since starting this rollout in mid-May, Prime members have already saved millions of dollars on everything from seasonal favorites to popular products.” Whole Foods Market President and COO, A.C. Gallo, stated, “Since launching Prime savings at Whole Foods Market, we’ve seen excitement and momentum from both Prime members and our supplier partners. Our weekly Prime member deals are a hit and we’re excited that Prime members across the U.S. will now be able to take advantage of these savings in our stores.”

Access RDI’s Amazon.com, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=AMZN

Alibaba Group Holding Limited shares were heading lower in Monday’s trading session, closing the day down 5.33%. Trading volume yesterday was nearly double compared to average. Traders may have been reacting to news that the U.S.-China trade war could get even uglier. According to a Wall Street Journal report, the Trump administration may consider restricting investment in U.S. tech firms by Chinese companies and blocking tech exports to China. The report said the proposal is being drafted by the U.S. Treasure and would be after Chinese investments in “industrially significant technology.” Analyst Gil Luria of DA Davidson remarked, “There are many, many Chinese companies that have invested in the U.S., but Alibaba is a very notable one: If they were not able to do so, that would really limit their ability to grow in the U.S. market.” The analyst continued, “Any restrictions on investment will limit growth opportunities in the U.S. It’s not the primary area of focus right now for Alibaba or JD, but Alibaba has tried to keep a stable of investments in the U.S. for the time in the future when they try to grow in the U.S. That was part of their long-term plan.”

Access RDI’s Alibaba Group Holding Limited Research Report at:
https://www.rdinvesting.com/report/?ticker=BABA

Our Actionable Research on Amazon.com, Inc. (NASDAQ: AMZN) and Alibaba Group Holding Limited (NYSE: BABA) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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