Guess the stocks Ep. 5: What marks the competitive edge for E-commerce companies?
E-commerce stocks have gain a lot of attention these years, especially with some popular stocks' price skyrocketing. But this market has transformed from a "blue ocean" 20 years ago, to a highly competitive market today. So how do we tell if an e-commerce company is winning more market shares over its competitors?
Sales expense ratio, the percentage of marketing expenses on total revenue, might be the key indicator. We focus mainly on the trend of this index. An increasing trend means that the company is spending relatively more money on sales and marketing, but gaining relatively less revenue. It can indicate a disadvantage. Conversely, a declining sales expense ratio trend might suggest higher competitiveness.
In the graph we can see clearly that company A has a downward sloping sales expense ratio, indicating that company A has competitive edge over the past two years. But the 2024 Q3 results reported a flat trend. The remaining companies have more flat curves on sales expense ratio, whereas company B shows a slightly upward sloping trend.
Challenge Starts here>>
Can this theory be tested? Let's look at their revenue growth. Get ready, the question comes later!
Questions:
1) Which company do Company A, Company B, Company C and Company D refer to, respectively?
2) Which one of these e-commerce companies has performed worst in the last two years, and briefly talk about why this company's stock price has underperformed.
1) Which company do Company A, Company B, Company C and Company D refer to, respectively?
2) Which one of these e-commerce companies has performed worst in the last two years, and briefly talk about why this company's stock price has underperformed.
Rewards:
An equal share of 5000 points: All mooers who correctly answer question 1 and give a reasonable answer to question 2 will get an equal share of 5000 points. (e.g., If 100 mooers answer correctly, each mooer will get 50 points.)
An equal share of 5000 points: All mooers who correctly answer question 1 and give a reasonable answer to question 2 will get an equal share of 5000 points. (e.g., If 100 mooers answer correctly, each mooer will get 50 points.)
Hint:
Company A: It is a Chinese online retailer with a focus on the traditional agriculture industry. This company also operates an international platform tha offers heavily discounted consumer goods which are mostly shipped directly from China.
Company A: It is a Chinese online retailer with a focus on the traditional agriculture industry. This company also operates an international platform tha offers heavily discounted consumer goods which are mostly shipped directly from China.
Company B: It is an American multinational e-commerce company based in San Jose, California, that allows users to buy or view items via retail sales through online marketplaces and websites in 190 markets worldwide. It was one of the first companies to create and market an Internet website to match buyers and sellers of goods and services.
Company C: It is a Chinese e-commerce company headquartered in Beijing, one of company A's major competitors. With revenues more than $152.8 billion in 2023, this company is China’s largest retailer by revenue, and ranks 52 on 2023‘s Fortune Global 500.
Company D: It is an American multinational technology company, engaged in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. This company ranks top 10 on 2023's Fortune Global 500.
For the introduction for stock compare feature, please tap here and learn more>>
How to participate?
Drop your answers in the comment section below! Please answer all the questions!
Note: Only original submissions will be considered. Plagiarized content leads to disqualification from the event.
Drop your answers in the comment section below! Please answer all the questions!
Note: Only original submissions will be considered. Plagiarized content leads to disqualification from the event.
Event time:
Now till 16 September, 2024, 23:00 ET
Now till 16 September, 2024, 23:00 ET
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : Online shopping companies![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
The company's co-CEO, Lei Chen, cited increased competition in China and other geographies, as well as "external challenges," as contributing factors. Additionally their focus in improving the quality of merchants on its platform and rooting out low-quality merchants and fraud may have also contributed to the underperformance![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
1)
A: $PDD Holdings (PDD.US)$
B: $eBay (EBAY.US)$
C: $JD.com (JD.US)$
D: $Amazon (AMZN.US)$
2) $PDD Holdings (PDD.US)$ performed the worst among the 4 companies. It was due to the company's second-quarter earnings report which despite showing growth and increased profitability included a warning from management about a slowdown and declining margins in the future
102362254 : Company A: $PDD Holdings (PDD.US)$
Company B: $eBay (EBAY.US)$
Company C: $JD.com (JD.US)$
Company D: $Amazon (AMZN.US)$
$JD.com (JD.US)$ has performed worst in the last 2 years as it faces stiff competition from other major e-commerce players like Alibaba and PDD Holdings, which has put pressure on its market share and profitability. The broader economic environment in China has been challenging.
HuatLady : A refers to $PDD Holdings (PDD.US)$
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Among the four companies, JD had the poorest performance due to its disappointing revenue growth ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
. Although its revenue grew compared to last year, its recent quarterly earnings still fell short of analyst expectations.
B refers to $eBay (EBAY.US)$
C refers to $JD.com (JD.US)$
D refers to $Amazon (AMZN.US)$
HuatEver : A is $PDD Holdings (PDD.US)$
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
$JD.com (JD.US)$ had the weakest stock performance over the past two years, largely due to broader market challenges.
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
B is $eBay (EBAY.US)$
C is $JD.com (JD.US)$
D is $Amazon (AMZN.US)$
The ongoing weakness in China’s e-commerce sector, coupled with economic uncertainties, has also played a significant role in the stock's decline.
hyperpc : A refers to $PDD Holdings (PDD.US)$
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Among these four companies, pdd holdings had the worst revenue growth. ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Although the revenue has increased compared to last year, its recent quarterly earnings still fall short of analysts' expectations.
B refers to $eBay (EBAY.US)$
C refers to $JD.com (JD.US)$
D refers to $Amazon (AMZN.US)$
ZnWC : E-commerce companies
1)
A: $PDD Holdings (PDD.US)$
B: $eBay (EBAY.US)$
C: $JD.com (JD.US)$
D: $Amazon (AMZN.US)$
2) $PDD Holdings (PDD.US)$ is among the 4 companies that have performed worst in the last two years, and the company's stock price has underperformed. As of today the stock is -35.6% YTD and -6.15% 1 year ago. The company sales are affected by the China economy slowdown and stiff competition from other e-commerce companies. The stock performance may also be affected by weak earnings in the last quarter.
104239592 : A refers to $PDD Holdings (PDD.US)$
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Among these four companies, Pinduoduo's revenue growth was the worst. ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Despite an increase in revenue compared to last year, its recent quarterly earnings still fell short of analysts' expectations.
b refers to $eBay (EBAY.US)$
C refers to $JD.com (JD.US)$
D refers to $Amazon (AMZN.US)$
Nikkii : 1.
A: $PDD Holdings (PDD.US)$
B: $eBay (EBAY.US)$
C: $JD.com (JD.US)$
D: $Amazon (AMZN.US)$
2. $PDD Holdings (PDD.US)$ performed the worst
102403690 : A refers to $PDD Holdings (PDD.US)$
b refers to $eBay (EBAY.US)$
C refers to $JD.com (JD.US)$
D refers to $Amazon (AMZN.US)$
[Concerned] Among these four companies, Pinduoduo's revenue growth was the worst. [Hammer] Despite an increase in revenue compared to last year, its recent quarterly earnings still fell short of analysts' expectations.
小丸子UP : online shopping company![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Chen Lei, the company's co-CEO, said that increased competition in China and other regions and “external challenges” were the contributing factors. Additionally, they focus on improving the quality of merchants on the platform, and removing low-quality merchants and fraud can also lead to poor performance.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
1)
A: $PDD Holdings (PDD.US)$
B: $eBay (EBAY.US)$
C: $JD.com (JD.US)$
D: $Amazon (AMZN.US)$
2) $PDD Holdings (PDD.US)$ Of these, 4 companies performed the worst. This was due to the company's second-quarter earnings report, which despite showing growth and increased profitability, management warned of a slowdown in future growth and declining profit margins.
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