PDD’s Bloodbath Earnings vs. Alibaba’s Steady Climb: Is the Tide Turning in China’s E-Commerce War?
$Alibaba(BABA)$ May 28, 2025 - If you blinked yesterday, you might have missed the carnage. **PDD Holdings (NASDAQ: PDD)**, the parent company of Pinduoduo and Temu, just dropped a financial bomb that sent its stock tumbling **17%** in a single day . Meanwhile, **Alibaba (NYSE: BABA)**, its archrival, has been quietly (well, relatively quietly) meeting expectations and even gaining ground in key areas like cloud and AI. So, what’s really going on here? Is this the moment Alibaba finally reclaims its throne as China’s undisputed e-commerce king? Or is PDD’s bloodbath just a temporary stumble in its relentless rise? --- ## **PDD’s Brutal Quarter: What Went Wrong?** Let’s break down the disaster: 1. **Profit Nosedive** – PDD’s net
A really good article. I am so fearful of the market turning down 10%. But the market is showing high greed index.
Retail Investors Aren't Scared Of The Stock Market. That Will Only Make The Selloff Worse
Regular investors have been 'buying the dip' aggressively. Remember: Be fearful when others are greedy.Individual investors' eagerness to "buy the dip" suggests that the stock market is close to a significant top.This bodes ill for the stock market because widespread "buying the dip" behavior among retail investors is a hallmark of market tops, just as reluctance to buy the dip typically occurs near market bottoms.According to contrarian analysts, a market bottom will be close when retail investors engage in just the opposite behavior than "buying the dip." To put that another way, a bottom will be imminent when investors eagerly use the occasion of every rise in the market to reduce their stock exposure.Such fearful investor behavior isn't apparent nowadays. It becomes even more remote with each successive dip in which investors are rewarded for buying. Their
$Alibaba(BABA)$ results briefing Q&s session. I did listen to yesterday briefing, super slow and boring and in both languages, which took double the time. I was very interested in what they shared regarding AI adoption and growt. Jan to Mar was slow as it included the CNY period. They are seeing high adoption rate in this quarter already!!! Something that was not reported. Buy! ### Key Takeaways on AI Growth and Seasonal Representation: 1. **AI-Driven Cloud Growth**: AI products are the fastest-growing segment (18% cloud revenue growth), but margins are impacted by infrastructure spending . 2. **Q1 Limitations**: Management cautioned that January-March performance is influenced by post-holiday adjustments and investment cycles, making i
$Alibaba(BABA)$ **Alibaba’s 2025 Results: Hits and Misses Against Expectations** Alibaba just released its Q4 FY2025 earnings, and the results were a mixed bag compared to market expectations. Here’s a breakdown of how the Chinese tech giant performed. ### **Revenue Slightly Misses Estimates** Alibaba reported revenue of RMB 236.45 billion ($32.58 billion), up 7% year-over-year. However, this fell just short of the expected RMB 237.24 billion. Analysts point to weaker consumer spending and global trade uncertainties as key factors. ### **Net Income Disappoints Due to One-Time Factors** While net income surged 279% YoY to RMB 12.38 billion ($1.71 billion), it was far below the projected RMB 24.7 billion. The mi
Case study on Why U.S. Tariffs Threaten Australia's Iron Ore Dominance
Even though China buys 80% of Australia's iron ore, U.S. tariffs would still cripple the industry because: 1. **Price Control** - Iron ore trades in USD, with prices set in U.S. markets - A 25% U.S. tariff could crash global prices 20-30% (2018 steel tariff precedent) 2. **China's Bargaining Power** - With reduced U.S. demand, China would demand discounts - 2020 coal boycott precedent: Australia had to sell to India at 25% discount 3. **Secondary Impacts** - AUD would weaken as export revenue falls - Mining giants (BHP, Rio Tinto) face profit squeezes - Threat of U.S. pressuring allies to avoid Australian ore **The Bottom Line**: The U.S. influences global commodity pricing power - even small tariffs create massive ripple effects. Australia's iron ore sector remains vulnerable despite Chin
"How U.S. Tariffs Backfire: Protecting Industry at the Expense of Citizens and Allies" *New analysis reveals Trump-era tariffs primarily burden American consumers while reshaping global trade alliances based on bilateral deficits.* ### **Introduction** The United States has wielded tariffs as a weapon against trade imbalances since 2018, but mounting evidence suggests these policies disproportionately hurt U.S. households while fostering a transactional approach to international relations. With the 2025 tariff expansions targeting China (54%), Vietnam (46%), and the EU (20%), the Biden and Trump administrations have doubled down on a strategy that economist Paul Krugman calls "self-inflicted economic wounds." --- ### **Key Findings** 1. **The Consumer Burden** - A 2024 *Tax Foundation* stu