Alibaba’s revenue grew only 3% last quarter as China’s zero-Covid lockdown had significantly impacted their business.
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2022-11-18 | Sign Up | View Online
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Business & Stocks 🏢
Alibaba stocks rallied despite revenue misses expectations (2 min read)

Alibaba’s revenue grew only 3% last quarter as China’s zero-Covid lockdown had significantly impacted their business. Roughly 50% of their locations experienced abnormal delivery service due to lockdown protocol which affected consumer demand. The amount merchants spend on Alibaba fell 7% annually, making it the steepest decline in a segment that typically accounts for 30% of the total revenue.  Despite reporting poor results, their US listed stocks jumped nearly 8% on Thursday.
Amazon offers voluntary buyout program to trim headcounts (2 min read)

Amazon announced a voluntary buyout program to reduce headcounts beyond the major layoff that has already started this week. This buyout program offers employees the option to receive a specific severance package in exchange for leaving the company. Amazon encourages the sign up of this program as the company steps up efforts to cut costs amid sales slowdown in a weakened economy. The layoff initiated this week is the largest since Amazon was established.
Markets & Economy 📈
Stock market rally could be about to meet recession reality (5 min read)

The lower than expected US inflation data last week had the markets rallied on hopes that the Fed will slow their aggressive rate hikes. Surging stocks suggest markets are reaffirming a possible soft landing but there is still plenty to support a recession can still develop. BlackRock said unless there’s more good news on inflation easing, the market needs to drop further before turning positive. Several strategists and asset managers also echoed these sentiments.
Britain announces higher taxes and spending cuts (4 min read)

The UK announced a new budget plan that involves increasing taxes and reducing spending with the goal of saving 55 billion euros for the country’s debt. This is a major U-turn from two months ago when former Prime Minister Liz Truss proposed tax cuts and boost borrowing in an attempt to generate growth. Economists said other countries with high debt loads could also be forced to make similar undesirable decisions.
Funds & ETFs 📊
Interesting new ETF launches in the pipeline (3 min read)

This article highlighted some of the upcoming ETFs that have submitted a proposal to the SEC. A couple that stand out include the First Trust Emerging Market Democracies ETF and the iShares Breakthrough Environmental Solutions ETF. First Trust’s new ETF tracks equities from emerging market countries that offer its citizens political rights and civil liberties. iShares’ new ETF invests in companies that focus on developing products for a low-carbon economy.
Pain or Gain Ahead of Semiconductor ETFs? (2 min read)

Semiconductor ETFs have jumped roughly 25% in the past month with Nvidia leading the rally. Warren Buffett’s recent $4 billion TSMC stake disclosure has also benefited the entire semiconducting sector. However, the industry is reporting declines in revenue due to slow demand and if recession hits, it will further deteriorate their earnings. As it’s possible the weakness continues, analysts suggest it’s best to wait and see before investing in this space.
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