Fastly enough
Stockholders of Cloudy Web Services Provider Fastly Should Worry: last week the company's systems collapsed. This entailed something, that a number of fundamental resources have become unavailable: Amazon.with, Reddit, CNN and New York Times. The dilemma was quickly removed, about an hour, - but for the whole hour the society did not know, how to live and what to do. At the moment, experts are afraid, that this episode may lead to a churn of customers from Fastly. Taking into account, that the company is still unprofitable and costs a lot, may be, long-term holders of these shares would be better off getting rid of them for now.
"The boy walks broadly, need to calm down "
American lawmakers from the House of Commissioners proposed a bill, according to which Amazon, Apple and other large technology companies will be prohibited from advertising services and products on their own platforms., which may cause a conflict of interest
For instance, Amazon, if the bill is implemented, will have to abandon its own business selling certain products, because the site also sells similar products from other companies and Amazon has incentives and opportunities to pressure rivals.
The implementation of the bill is extremely far away here., and does not mean, that such acceptance will in principle take place. However, it must be remembered that, that there is a rather rich tradition of antitrust campaigns in the United States: remember the history of Standard Oil, which was divided into a bunch of small companies. It is for these reasons that the option of splitting up these companies is quite realistic - which, probably, does not bode well for their shareholders.
Logistic boom
Waking up from coronavirus sleep, the global economy buzzed and flooded logistics companies with orders. So, prices for transportation by dry cargo reached their maximum values for 11 years, and the waiting time for American factories for raw materials reached a record level in 34 of the year - 85 days from the date of order. For example, from the American furniture retail chain Room & Board now has about 50% from the assortment - against 90% at normal time, and some customers wait for wardrobes and sofas for months.
All this is generally not good for most companies.: higher logistics costs will be reflected in their reporting. On the other hand, this is great news for companies, providing logistics solutions: from software and warehouses to cargo transportation.
Also, the tense situation in this area is forcing companies to innovate.: so, Kroger launches drone delivery of groceries to customers in Ohio. The next step in this direction is to make these innovations profitable.. Online commerce is notorious for low or negative margins, that's why retail chain Albertsons is investing heavily in AI and big data analytics, to bring your business to profit.
Cryptocurrency news
El Salvador's parliament recognizes bitcoin as a legal means of payment. This, certainly, doesn't mean, that soon state banks of all countries will start accepting bitcoin, but still a step has been taken.
The more interesting news is, that the cryptocurrency exchange Coinbase entered into an agreement with the operator of pension plans ForUsAll: Now the owners of accumulative retirement accounts on the platform of the latter will be able, thanks to Coinbase, to invest in cryptocurrencies up to 5% from your savings. I'll tell you right away, what to expect a boom in crypto-currency investment due to this is not worth it: ForUsAll is just $1.7 billion in savings. For comparison: The total amount of money in US retirement savings accounts is $22 trillion.. But, as well as the recognition of bitcoin in El Salvador, this is a significant step towards the adoption of cryptocurrency by institutional investors.
Think, that in the long run this will reflect very well on Coinbase's revenue and profit, because banks and funds, maybe, will actively invest in these assets, including through the platform of the company.
The Incredible Adventures of the Chinese in America
Several Chinese companies at once set out to enter the IPO in the United States.
Didi Chuxing Technology, hybrid of taxi service and carsharing. For 2020, the company showed revenue of 141.74 billion yuan and a total loss of around 10.68 billion yuan - a pretty good result., compared to Uber, whose losses exceed revenue by 36%. Capitalization at Didi will be around 70 billion dollars, which is quite a lot.
MissFresh — online grocery delivery service from supermarkets. Revenue of 6.13 billion yuan in 2020, the company accounted for 1.649 billion yuan of losses. The capitalization of the company will be somewhere around $3 billion.
Dingdong - another service for delivering groceries from the store. This is also a loss-making company.: on revenue of 11.335 billion yuan, it accounts for 3.176 billion yuan of losses. Capitalization of the company is planned in the region of $5 billion.
Prospects for upcoming IPOs are difficult to predict: On the one side, in the USA they react with great enthusiasm to all new papers. On the other hand, Chinese propiska may scare away many potential investors, both because of the constant risks of delisting, and for more prosaic reasons. There have already been quite a few major fraud scandals among Chinese issuers. Also the last two services should be kept in mind, that American competitors came to their neighboring country: DoorDash launched in Japan. But in general, the digital transport and food delivery industry is characterized by negative margins., so in terms of the foundation of the business, there is nothing special to count on here.
Privacy news
Apple, seem to be, set out to seriously destroy the internet advertising business. The company plans to release a software update this fall., which will prevent third parties from collecting data about users of Apple devices. All this by default spoils the revenue of topics, who works in the field of online advertising.
At the same time, regulators in the EU plan to fine Amazon $425 million for violating European law in the field of collecting user data.. The fine is relatively small - only 2% from the company's profits. But collecting user data is something, which is largely driving the growth of Amazon's business, - so here the company is attacked in the heart.
