By: Economic & Finance Report

Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.

Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.

Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.

It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB

19 April 19

1) Amazon announced it is shutting down its store in China, and instead will focus on cross boarder global sales to China. Amazon cited the high competition in China from local companies, with 80% coming from Alibaba, the giant Chinese online retailer.

2) The magazine National Enquirer is being sold for $100 million dollars, along with two sister publications to reduce the $355 million dollar debt of the holding company AMI. National Enquirer sales have dropped by half over the last four years.

3) Sprint, the wireless carrier, has revealed they are not as strong a performer as the public had been lead to believe. In a proposed merger with T-Mobile, Sprint had to make full disclosure with regulators, disclosing that many of their added new connections were actually free lines.

4) 18 APR 19 Stock market closings:

Dow              26,559.54   up   110.00
Nasdaq           7,998.06   up       1.98
S&P 500          2,905.03   up       4.58

10 Year Yield:    down   at    2.56%

Oil:    unchanged   at    $64.00


alibaba pic


Economic & Finance Report

World’s biggest electronic commerce company Alibaba will establish a startup incubator inBangalore, India’s Silicon Valley. The Chinese ecommerce giant plans to setup mobile internet andmobile commerce incubator together with Bangalore based analytic solutions company Globals.

According to Globals founder Suhas Gopinath, they have come to an in-principle agreement on incubator. Mr Gopinath was described as one of the youngest CEOs in the world and the WorldEconomic Forum had named him as ‘Young Global Leader’ of the year 2008-2009. Mobile startupinitiative of Alibaba gains special importance as the organization is moving rapidly to mobile

It is learnt that Globals CEO had met Alibaba founder Jack Ma in New Delhi for discussing the plan in detail. Suhas Gopinath elaborates about the new initiative, “It also becomes easier to mentor thestartups and find the right set of funders if you have a focused investor. Most incubators in Indiacurrently are generic ones. Idea of incubator came from Guru Gowrappan, COO of Silicon valleybased tech company Quixey, a search engine for apps in which Alibaba has shares”.

Few Indianstartups have been identified to be the stakeholders of joint business initiative between Alibaba andGlobals, Bangalore based IT company with stellar reputation.

As per information available from reliable sources, operations of the new venture will start in May2015. It is perceived as a one year program in which five startup companies will be the principal stakeholders. Indian business community hopes that this new business venture will scale new heights of excellence. Selected startups of Alibaba-Globals business partnership will receive seedfunding, an investment concept gaining rapid prominence among India Inc.

A fund for the new company is being established with participation from multiple funders including Alibaba. During recent meeting with Indian Prime Minister, Alibaba founder Jack Ma discussed B2B ecommerce platforms. On this meeting, Alibaba tweeted, “Jack meets Indian Prime Minister to discuss how Alibaba can help empower small businesses in India”.

Alibaba had invested $575 million dollar in Indian mobile payment company Paytm earlier this year. This new ecommerce establishment will give momentum to Indian market blessed with presence of online shopping tycoons like Flipkart and Snapdeal. Alibaba will offer all possible help to the electronic commerce setup in the form of technology and business expertise. Suhas Gopinath hopes to receive assistance from Government of Karnataka, major coordinating agency of Information Technology development programs in Bangalore for his dream project. He had hit the headlines of major world newspapers before eleven years when he started Globals at the very young age of just sweet seventeen.

According to recent market reports, the new incubator will focus on those startups which are venturing into mobile internet and mobile commerce space. Although there are number of startups in India, there are very few which focuses on particular domain. It is expected that this Chinese-Indian mobile commerce conglomerate will bridge this gap very soon. Globals provide web, cloud, enterprise application development and product development services to various clients in education, finance and media domains.